Ceragon Networks (CRNT) Stock Forecast & Price Target

Ceragon Networks is supported by strong fundamental momentum, with 2Q26 revenue of $93.9MM rising 14% y/y and 10% q/q, while EPS of $0.02 beat consensus and management reiterated F26 revenue guidance. The bullish view is reinforced by India’s exceptional performance, where sales of $45.1MM grew 83% y/y and more than $120MM of bookings were announced in 2026, alongside resilient North America sales that rose 77% y/y to $31.5MM and a progressing new Tier 1 win. Although gross and operating margins compressed because of mix and higher component costs, the company’s expanding backlog, 4G/5G upgrade exposure, services capability, and new product traction suggest improving earnings power as supply constraints ease.

Ceragon Networks is facing a fundamentally weaker near-term backdrop as both of its largest revenue drivers deteriorated, with North America sales down 24% y/y to $20.7MM and India sales down 30% y/y to $29.8MM, signaling soft demand or delayed conversions in core markets. Gross margin outlook is also under pressure from component supply delays, memory chip cost inflation, unfavorable geographic mix, and FX headwinds, prompting management to cut NG operating margin guidance to 5.0%-6.0% from 6.5%-7.5% and NG gross margin to 33.5%-34.5% from about 35.5%. Although F26 revenue guidance of $355MM-$385MM and India bookings of $86MM suggest some demand visibility, operating momentum is weakening, with cash from operations falling to $5.1MM and free cash flow to $1.7MM, both well below prior periods.