Ceragon Networks (CRNT) Stock Forecast & Price Target

Ceragon Networks is viewed positively because it is delivering upside to consensus, with 2Q26 revenue and EPS coming in +9% and $0.02 above expectations, while reiterating F26 revenue guidance of $355MM-$385MM and targeting NG OM of 6.5%-7.5%. Its fundamentals are supported by strong demand in India, where sales rose 83% y/y to $45.1MM and bookings topped $120MM YTD, alongside improving traction in North America from a new tier 1 win that could add meaningful revenue by C27. Although near-term margins face pressure from a higher India mix and component supply constraints, the combination of a strong pipeline, new product launches, and positive cash generation makes the longer-term growth and profitability path compelling.

Ceragon Networks is facing weakening fundamentals as North America sales, 22% of total revenue, fell 24% year over year to $20.7 million, with component supply delays pushing shipments from 2Q into 3Q and even some North America revenue into 2H26. Gross margin is under pressure from an unfavorable sales mix, industry-wide component cost increases, and FX headwinds, while the heavier India mix in 2Q is temporarily masking the impact. Cash generation also softened, with operating cash flow down to $5.1 million from $6.5 million in the prior quarter and $10.8 million a year ago, and free cash flow dropping to $1.7 million from $10.8 million year over year.