Calix (CALX) has caught investor attention this week after posting a sharp turnaround in third quarter results. The company moved from a loss last year to meaningful net income and also reported strong annual sales growth.
See our latest analysis for Calix.
After a stellar earnings reversal and fresh buyback update, Calix’s share price tells a story of growing investor confidence. The stock has soared 88.9% year-to-date, with a strong 90.9% total shareholder return over the last 12 months. This momentum suggests the market sees lasting potential, even as the company guides for even stronger full-year growth just ahead.
If Calix’s strong rebound piqued your interest, there are plenty more fast growers to check out. Now is a great time to discover fast growing stocks with high insider ownership
The question now is whether Calix’s rapid turnaround and bullish outlook mean the stock is undervalued at today’s levels, or if its impressive run-up has already priced in all the future growth potential.
Most Popular Narrative: 11.3% Undervalued
Calix’s most popular narrative places fair value at $72.17, comfortably above the last close at $64.03. This signals that, in the view of consensus analysts, Calix still has notable upside potential based on forward assumptions. The narrative highlights both emerging catalysts and some real tension beneath the surface.
The upcoming rollout of Calix's third-generation platform, which integrates agentic AI capabilities, is expected to dramatically accelerate broadband providers' ability to monetize new services and experiences across residential, business, and municipal segments. This can drive higher ARPU, increased subscriber growth, reduced churn, and ultimately stronger revenue expansion beginning in the second half of 2025 and accelerating into 2026.
Want to know what’s fueling this ambitious call? The big swing rests on a bold transition to recurring revenue and a fantastic turnaround in profit margins. Curious how sky-high expectations for future earnings and cash flows shape this current price target? Unlock the full narrative to spot the drivers that set Calix apart from the rest.
Result: Fair Value of $72.17 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, stiffening data privacy regulations and slower than expected customer adoption of new AI features could still hinder Calix’s outlook, despite recent optimism.
Find out about the key risks to this Calix narrative.
Build Your Own Calix Narrative
If you see things differently or want to dive into Calix’s story your own way, you can craft your perspective in just a few minutes. Do it your way
A great starting point for your Calix research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Calix might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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