Clearfield (CLFD) Stock Forecast & Price Target

Clearfield Inc has demonstrated robust growth in its key segments, highlighted by a 33% year-over-year increase in Cable (MSO) sales, which contributed 24% of total revenue, and a notable expansion in the Large Regionals and MSOs, now comprising 44% of the sales mix. Financial metrics indicate a gross margin improvement to 34.6%, up from 26.6% a year ago, and an expected organic revenue growth of approximately 12%, positioning the company favorably for fiscal year 2026 and beyond. Projections for fiscal year 2027 estimate a significant sales growth of around 27%, driven by increased BEAD spending and new product contributions in emerging markets such as edge data centers.

Clearfield Inc reported consolidated revenue of $50.4 million for F4Q25, which showed year-over-year growth of 8%, but the company experienced a significant GAAP EPS loss of $(0.65) largely due to a $10.4 million asset impairment linked to the divestment of its Nestor business unit. The company's outlook for 1Q revenue was muted, with guidance set at $30 million to $33 million, aligning with a year-over-year increase of only 6%, and falling short of consensus expectations partly due to delays related to government initiatives and disruptions associated with the federal government shutdown. Furthermore, Community Broadband sales saw a decline of approximately 7% year-over-year, significantly impacted by the aforementioned delays and affecting overall fiscal year 2026 EPS guidance, which is down $0.29 from prior expectations.