Ceragon Networks (NASDAQ:CRNT) reported second-quarter 2026 revenue of $93.9 million, up 14.2% from $82.3 million a year earlier, as demand in India and North America supported growth. The company said bookings reached their highest level since the first quarter of 2024, while first-half bookings and book-to-bill represented its strongest first half in 10 years.
Chief Executive Officer Doron Arazi said recently introduced technologies, including the company’s E-band portfolio, IP-50CX platform and multi-band offerings, are helping Ceragon win business tied to network modernization, capacity upgrades and fixed wireless access deployments.
India drives bookings momentum
India was Ceragon’s largest revenue region during the quarter, contributing $45 million in sales, followed by North America with $21 million. Arazi said the company had booked approximately $120 million in orders from Indian mobile operators through late July, primarily involving two of the country’s leading carriers. The orders support expansions and modernization of nationwide 4G and 5G transport networks.
According to Arazi, Indian demand is being supported by two factors: continuing network upgrades among operators that have not completed 4G modernization and demand from more advanced operators expanding fixed wireless access for residential and enterprise connectivity.
“Fixed wireless access remains an important driver” in India, Arazi said, as carriers seek higher-capacity transport that can be deployed quickly and economically. He said the IP-50CX and multi-band products are winning business in these applications.
Chief Financial Officer Ronen Stein said most of the $120 million of India bookings is expected to convert into revenue during 2026, with some already recognized. Arazi added that 2026 could become one of Ceragon’s strongest booking years in India in some time, subject to supply-chain conditions.
Margins pressured by costs and supply constraints
Despite revenue growth, profitability declined from the prior-year period. Non-GAAP gross profit rose 4.4% to $30.3 million, but non-GAAP gross margin fell to 32.2% from 35.2%. Stein attributed the decline to geographic and product mix as well as component-cost pressure and supply-chain challenges.
Non-GAAP operating income was $4 million, or 4.2% of revenue, compared with $4.7 million, or 5.7% of revenue, in the second quarter of 2025. Non-GAAP net income totaled $1.7 million, or $0.02 per diluted share, compared with $2.5 million, or $0.03 per diluted share, a year earlier.
Stein said Ceragon does not expect mitigation initiatives to appreciably offset cost pressure in the near term. The company is pursuing procurement, product-design and supply-chain actions, while also seeking to increase software sales. Management also said it expects to pursue higher prices as customer agreements are renewed.
“The issue is not the demand,” Arazi told analysts. “The issue is the disruption in the supply chain, and timeline of getting components.” He said the company’s revenue outlook reflects uncertainty around obtaining components on time and converting orders into revenue.
Ceragon reiterated its 2026 revenue guidance of $355 million to $385 million. However, it lowered its expected full-year non-GAAP gross margin to 33.5% to 34.5%, from 35.5% previously, and reduced its operating-margin expectation to 5% to 6%, from 6.5% to 7.5%, both measured at the midpoint of its revenue range.
North America, private networks and services expansion
Arazi said North American revenue from an existing Tier 1 carrier was slightly above the company’s expectations in the quarter, although some shipments shifted into the third quarter. He said underlying demand from that customer remains healthy and that Ceragon expects the second half in North America to be stronger than the first.
The company also completed proof-of-concept field trials of its 5G FR2 solution with a new Tier 1 North American carrier and has entered commercialization discussions. Arazi said the company could begin receiving orders relatively soon, potentially in the third quarter, but expects revenue from the relationship to become meaningful in 2027.
Private-network bookings in North America reached a record, management said. Ceragon is pursuing broader projects combining wireless transport with private 5G and LTE technologies for IoT connectivity, automation and other mission-critical uses. Arazi cautioned that private-network projects generally have longer sales cycles and slower revenue conversion than traditional carrier equipment shipments.
- Ceragon secured a two-year, $3.4 million managed-services contract with a major mobile operator in Mexico.
- The company also won an additional five-year agreement worth up to $70 million with a Tier 1 mobile operator in APAC.
- EMEA bookings reached their highest level in nearly three years during the second quarter, according to management.
The company ended the quarter with $34.8 million in cash and $12 million in short-term loans, producing a net cash position of approximately $22.8 million. Net cash generated by operating and investing activities was $0.3 million during the quarter.
Looking beyond 2026, Arazi said Ceragon continues to view high-single-digit revenue growth as a reasonable assumption, without providing formal guidance. He said gains in private networks and opportunities created by changes in the competitive environment could potentially support faster growth.
About Ceragon Networks (NASDAQ:CRNT)
Ceragon Networks Ltd. is a global provider of wireless backhaul solutions, specializing in high-capacity, low-latency connectivity for mobile operators and private networks. The company designs and manufactures a portfolio of microwave and millimeter-wave equipment that serves as a fiber alternative for carrying voice, data and video traffic between cell sites and core networks. Ceragon’s solutions are engineered to support the rigorous performance requirements of modern 4G and 5G deployments, with an emphasis on scalability, reliability and efficient spectrum utilization.
The company’s product lineup includes point-to-point and multi-point radio platforms, as well as software-driven network management tools that enable operators to plan, deploy and monitor end-to-end transport networks.
