How did North America private networks progress sequentially, and is there any concrete opportunity from Starlink's terrestrial network plans?

North America looks good, with Q3 expected to be stronger. Private network business is growing nicely, but conversion to revenue is slower than traditional carrier business. Starlink's terrestrial network plans are speculative; if they build a fast, competitive network, backhaul will be critical, potentially creating an opportunity for Ceragon, but details are lacking. “I don't think that at this point, their technology can carry such amount of data. I'm not sure that it will be able to carry such amount of data even in the long term, but that's something that we can leave out. So based on all these assumptions, I think that there can be an opportunity for players in the millimeter wave and microwave domain to help them build their network very fast with a level of service that can compete with the incumbents.”

What are the changes in mix and use cases driving strength in India, specifically regarding rural coverage, FWA in urban areas, and product mix?

India's strength is driven by two phenomena: operators completing 4G upgrades and advanced operators expanding 5G business with fixed wireless access (FWA) for residential and enterprise. FWA requires higher capacity backhaul, leading to demand for Ceragon's ICSA product or multiband solutions. “The other part, and that's for the more advanced operators. In the 5G era, the operators in India are looking to expand the business predominantly bringing connectivity to residential areas and to enterprise, which means more fixed wireless access use cases.”

When will the new Tier-1 North America customer start driving meaningful revenue, and is there a good shot at share gains in 2027?

Meaningful revenue from this new Tier-1 operator is expected in 2027. Orders are anticipated to start quite soon, possibly in Q3 2026, but the revenue impact will be more significant next year. “I would say that -- this strengthening relationship with this new Tier-1 operator will start driving meaningful revenue for us in 2027. I do believe that we -- and I think I also mentioned that in the previous call, I do believe that we'll start getting the orders quite soon, maybe even in Q3.”

CRNT

Ceragon (CRNT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 11, 2026

Source: earnings call transcript

Executive summary

Ceragon Q2 FY26 — Strong Bookings and E-Band Demand Drive Growth

Ceragon delivered a strong second quarter, marked by record bookings and robust demand for its E-Band products and private network solutions, particularly in India and North America. Despite persistent supply chain challenges and resulting gross margin pressure, the company is capitalizing on a shifting competitive landscape and expanding its market reach through new technologies and managed services. Management remains confident in its long-term growth trajectory, driven by increasing TAM and strategic initiatives.

Highlights

Revenue increased 14% year-over-year to $93.9 million, driven by strong demand in India and North America.
Bookings reached their highest level since Q1 2024, with H1 2026 book-to-bill ratio being the highest in 10 years.
Secured approximately $120 million in orders from Indian operators through late July, primarily for 4G/5G network expansion and modernization.
Private network bookings in North America reached a record high, reflecting accelerating global opportunities.
Secured a 5-year, up to $70 million agreement with a Tier-1 mobile operator in APAC, demonstrating long-term strategic relationships.

Concerns

Non-GAAP gross margin declined to 32.2% from 35.2% in Q2 2025, negatively impacted by geographical/product mix and cost pressures.
Non-GAAP operating income decreased to $4 million (4.2% of revenue) from $4.7 million (5.7% of revenue) in Q2 2025, also impacted by adverse foreign currency movement.
Full-year 2026 gross margin guidance lowered to 33.5%-34.5% (from 35.5%) and operating margin to 5%-6% (from 6.5%-7.5%) due to anticipated cost pressures.
Supply chain challenges, including component costs and lead times, are expected to persist and pressure gross margins over the remainder of 2026.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$355 million to $385 million high materiality	FY26	High
Full-year 2026 Non-GAAP Gross Margin	33.5% to 34.5% high materiality	FY26	High
Full-year 2026 Non-GAAP Operating Margin	5% to 6% high materiality	FY26	High
Revenue impact from new Tier-1 North America customer	Meaningful revenue medium materiality	FY27	Medium
Long-term Revenue Growth	High single-digit growth high materiality	Years to come	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
India Strongest region for revenue, driven by 4G/5G network expansion and modernization, and fixed wireless access. Exceptionally strong bookings in H1 2026. Bookings (YTD through July): $120 millionBookings (H1 2026): Highest in 10 years	$45 million	—	—	—
North America Strongest region for revenue alongside India. Revenue from key Tier-1 carrier was slightly higher than anticipated, despite some Q2 shipments shifting to Q3. Private network opportunities accelerating with record bookings. Private network bookings: Record high	$21 million	—	—	—
EMEA Seeing payoff from recent leadership changes and investments, with Q2 bookings reaching a near 3-year high. Bookings (Q2 2026): Highest in almost 3 years	—	—	—	—
Latin America Secured a significant managed services contract with a major mobile operator in Mexico, expanding relationship beyond equipment. Managed Services contract: $3.5 million over 2 years	—	—	—	—
APAC Secured a long-term agreement with a Tier-1 mobile operator, validating ability to build strategic relationships. Tier-1 mobile operator agreement: Up to $70 million over 5 years	—	—	—	—

Orderbook & backlog

Bookings Highest level since Q1 2024 Q2 FY26

Bookings and the book-to-bill ratio in the first half of 2026 represent the highest in the last 10 years for any first half period.

India Orders $120 million late July

booked approximately $120 million in orders from operators in India through late July. These orders are primarily driven by 2 of the country's leading mobile operators and support both the expansion and modernization of nationwide 4G and 5G transport networks.

Deals & partnerships

Major mobile operator in Mexico Managed Services contract $3.5 million 2 years

Demonstrates opportunity to increase value provided to customers and build a more diversified revenue base.

Tier-1 mobile operator in APAC 5-year agreement renewal up to $70 million 5 years

Renewal of a significant long-term engagement.

Risks & headwinds

Supply chain challenges and component cost pressures over the remainder of 2026

Gross margin was negatively impacted by geographical and product mixtures, along with some cost pressures. full year 2026 gross margin to be between 33.5% to 34.5% versus 35.5% previously

Mitigation:Implementing mitigation initiatives across procurement, product design, and supply chain; focusing on increased software sales; exploring price increases in future contract renewals.

Adverse foreign currency movement Q2 FY26

operating income was also negatively impacted versus 2025 due to adverse foreign currency movement in the Israeli shekel.

Mitigation:Foreign exchange conditions stabilized during the quarter.

AI explosion creating perfect storm for chips Current and ongoing

the AI explosion has created a perfect storm in the domain of chips and active components for many industries.

Mitigation:Impacts ability to convert orders to revenue; management is implementing mitigation initiatives across procurement, product design, and supply chain.

What to watch in Q3 FY26

New North America Tier-1 customer orders

Q3 FY26

Current Proof-of-concept field trials successful, in commercialization discussions

Target Orders received

Why it matters

Securing orders from this new Tier-1 customer is crucial for future revenue growth, with meaningful impact expected in 2027.

I do believe that we'll start getting the orders quite soon, maybe even in Q3.

Find out whether CRNT delivers this. Inve re-checks your case every morning.

Q&A highlights

Why is the 2026 revenue guidance reiterated as flattish for H2 vs H1, despite strong bookings and India strength, and what are the swing factors?

The reiterated guidance is due to supply chain disruptions and component lead times, not demand. The "AI explosion" has created a perfect storm for chips, making it difficult to convert strong orders into revenue in a timely manner.

“The issue is not the demand. The issue is not the visibility. The issue is the disruption in the supply chain and time line of getting components. Let's not forget, the AI explosion has created a perfect storm in the domain of chips and active components for many industries.”

asked by Scott Searle · answered by Doron Arazi

2 min read 6 chapters

Detailed narrative

Competitive Landscape Shift

Ceragon is benefiting from significant changes in the competitive landscape, with two major competitors lacking visible technological continuity and a third having uncertain future commitment. This situation is creating new opportunities, leading to increased engagement in RFPs and bids for new use cases, as customers seek established technology leaders.

E-Band Product Adoption and Private Network Growth

Demand for Ceragon's innovative E-Band wide portfolio, including the IP-50EX platform and multi-band solutions, is very strong, particularly in India for fiber-like capacity. Private network opportunities are accelerating globally, with record bookings in North America. These projects combine advanced wireless transport with technologies like private 5G and LTE for IoT and mission-critical applications, with industry estimates predicting over 30% CAGR for private networks in the next four years.

India Market Strength

India continues to be a region of strong demand, driven by mobile operators expanding and modernizing 4G and 5G transport networks, and increasing fixed wireless access (FWA) deployments. The exceptionally strong bookings in the first half of 2026 suggest that 2026 could be one of the strongest bookings years in India in quite some time.

North America Carrier and Private Network Momentum

The North American market remains strong, with revenue from a key Tier-1 carrier customer slightly exceeding expectations despite some Q2 shipments shifting to Q3 due to supply chain timing. Ceragon successfully completed proof-of-concept field trials for its 5G FR2 solution with a new Tier-1 carrier and is in commercialization discussions, expecting meaningful revenue from this relationship in 2027.

Expanding Services and Long-Term Engagements

Ceragon is expanding its service offerings beyond traditional wireless transport. This includes securing a 2-year, $3.5 million managed services contract in Mexico and a 5-year, up to $70 million agreement with a Tier-1 mobile operator in APAC. These wins demonstrate the company's ability to build long-term strategic relationships and diversify its revenue base through broader service engagements.

Supply Chain and Cost Pressures

The supply chain environment remains challenging, with persistent cost and lead time issues, exacerbated by the "AI explosion" impacting chip and active component availability. These pressures negatively impacted gross margins in Q2 2026 and are expected to continue through the remainder of the year, leading to revised full-year gross and operating margin guidance. Management is implementing mitigation initiatives and focusing on increased software sales.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.