Ceragon Networks (CRNT) Stock Forecast & Price Target

Ceragon Networks is well positioned by its strong demand momentum in India and North America, where 2Q26 revenue of $93.9MM rose 14% y/y and India sales surged 83% to $45.1MM, supported by over $120MM in India bookings in 2026. Its outlook is further underpinned by new product traction, including the IP-20/IP-50 portfolio and a new NA tier 1 win that could add meaningful revenue by F27, while the company continues to expand its wireless transport relevance across 4G and 5G upgrades and FWA use cases. Although gross margin and operating margin were pressured by geo mix and higher component costs, management has been able to secure supply, redesign products, and preserve a strong pipeline, supporting a constructive fundamental view.

Ceragon Networks is facing a weaker fundamental setup despite reiterating F26 revenue guidance of $355MM-$385MM, because management also cut NG operating margin to 5.0%-6.0% and NG gross margin to 33.5%-34.5% from about 35.5% due to adverse geographic mix and higher component costs. Supply-chain delays are pushing North America shipments into 2H26, while North America sales fell 24% y/y to $20.7MM and India sales declined 30% y/y to $29.8MM, highlighting soft near-term execution in its two key markets. Cash generation is also cooling, with cash from operations of $5.1MM and free cash flow of $1.7MM, reinforcing the view that margin pressure and lower conversion are likely to outweigh top-line growth.