Clearfield (CLFD) Stock Forecast & Price Target

Clearfield Inc has demonstrated robust performance, with Cable (MSO) sales reaching $10 million, representing 24% of total revenue and experiencing growth of 33% year-over-year and 9% quarter-over-quarter, driven by strong demand from fiber-to-the-home customers. The company's guidance indicates a projected core revenue growth of 6% in the first fiscal quarter and 10% in fiscal year 2026, alongside significant contributions from both Large Regionals and Multiple System Operators, which have seen an increase to 44% of the overall revenue mix and growth rates of 13% sequentially and 31% year-over-year. Additionally, the operational margins and gross margins have improved markedly, with gross margins reaching 34.6%, up from 26.6% in the prior year, while projections for fiscal year 2027 suggest a continued strong sales growth of approximately 27% fueled by market dynamics and new product introduction.

Clearfield Inc reported consolidated revenue of $50.4 million for F4Q25, an 8% increase year-over-year, but its GAAP EPS of $(0.65) significantly underperformed expectations due to a $10.4 million asset impairment loss related to the divested Nestor Business Unit. The company's first quarter revenue guidance of $30 million to $33 million for core operations reflects a decline compared to prior expectations, predominantly impacted by the government shutdown and delays associated with the Broadband Equity, Access, and Deployment (BEAD) program. Furthermore, Community Broadband sales experienced a notable decrease of 7% year-over-year, compounded by challenges stemming from these delays and impacting overall financial outlook for FY26, which indicates a reduction in EPS guidance of $0.29 compared to previous estimates.