Ceragon Navigates Q4 Revenue Deferral with Strong 2026 Growth Outlook

ROSH HA'AIN, Israel – January 08, 2026 – Ceragon Networks (NASDAQ: CRNT) announced a revision to its fourth-quarter 2025 revenue forecast today, a move prompted by a delivery deferral from a major North American customer. While the adjustment points to the inherent volatility in managing large-scale telecom contracts, the company simultaneously issued a robust revenue forecast for 2026, signaling confidence in its strategic direction and growing backlog.

The wireless connectivity specialist now expects fourth-quarter revenue to land between $81 million and $83 million. The change stems from a single, unnamed customer in North America pushing deliveries scheduled for the final weeks of December 2025 into the new year. This development highlights a known risk in the sector, where the timing of a few substantial projects can significantly sway quarterly results. According to a Q3 2025 report, Ceragon had two customers that each accounted for at least 10% of its revenue, underscoring the potential impact of such customer concentration.

However, Ceragon's management has moved to reassure investors that the shift is a matter of timing, not a loss of business.

"During the fourth quarter, a large North American customer deferred scheduled deliveries that we now expect in 2026," commented Ceragon's CEO, Doron Arazi, in a statement. "We don't expect order cancellations related to this timing shift, and it increased our backlog exiting 2025. Bookings in the region remained strong during the quarter, and our backlog in North America nearly doubled compared to the end of 2024."

Charting a Course for Growth

Despite the short-term revenue adjustment, Ceragon is positioning 2026 as a year of significant expansion. The company issued full-year revenue guidance of $355 million to $385 million, a projection that incorporates the deferred revenue from 2025. This forecast suggests a notable uplift from the revised expectations for the full year 2025, which analysts had previously pegged around $340 million.

This optimistic outlook is built on several key pillars. The company sees expanding opportunities in both North America and India, two of its strongest markets. In the third quarter of 2025, North America contributed $36 million in revenue, while India added $24.4 million. The near-doubling of the North American backlog provides a solid foundation for this projected growth, likely fueled by momentum in Fixed Wireless Access (FWA) and rising investments in 5G network infrastructure.

Another critical growth engine is the burgeoning private networks market. Ceragon is making a concerted effort to diversify its customer base beyond traditional service providers. The company reported adding over 30 new customers in 2025, with more than 75% of them being private network clients in sectors like utilities, public safety, and energy. This strategic push aims to build a more stable and predictable revenue stream, less susceptible to the ordering patterns of a few large telecom operators.

"We are entering 2026 with a clear strategy to drive growth and improve the consistency of our business," Arazi stated. He cited the expanding opportunities in North America and India, "continued traction in private networks, and new product introductions aligned with customer needs" as the core supports for the company's 2026 guidance.

Strategy, Innovation, and Competitive Pressures

Ceragon's strategy hinges on building what Arazi describes as a "more resilient, diversified and scalable growth profile." This involves a multi-pronged approach focused on product innovation, sales coverage, and geographic priorities. The company has four new product launches slated for 2026, with a heavy emphasis on 5G-based solutions designed to facilitate the ongoing global transition to the next-generation wireless standard.

Products like its IP-20 and IP-50 series, which support Software-Defined Networking (SDN) protocols, offer customers flexibility and the potential for a lower total cost of ownership (TCO)—a crucial selling point in a capital-intensive industry. This innovation is vital as Ceragon, with a market capitalization under $200 million, competes in a landscape dominated by industry giants such as Ericsson, Nokia, and Huawei, as well as specialized competitors like Aviat Networks.

To further bolster its resilience, Ceragon is also reportedly exploring new business models, including managed services and "Connectivity-as-a-Service" (CaaS). Such offerings could help smooth out revenues by shifting from large, one-time hardware sales to recurring service-based contracts, further mitigating the project-based volatility seen in the latest quarter.

"We believe the actions we have taken across product development, sales coverage, and geographic focus position us well for 2026," Arazi concluded.

Navigating a Complex Global Environment

Ceragon's ambitious growth plans are set against a backdrop of significant macroeconomic and geopolitical challenges. As an Israeli-based company, its operations are subject to regional instability, a risk factor regularly noted in its public filings and underscored by ongoing conflicts in the region. Such events can pose risks to supply chains, personnel, and overall investor sentiment.

Beyond geopolitics, the company faces the same global economic headwinds affecting the entire technology sector. Rising interest rates can dampen the appetite for large capital expenditures from its service provider customers, while persistent inflation can drive up component and operational costs. The telecom industry itself is navigating a complex transition, balancing massive investments required for 5G rollouts with the need to achieve profitability and network security.

Supply chain vulnerabilities also remain a persistent concern. The industry's reliance on a limited number of component suppliers can lead to shortages and price instability, potentially impacting a company's ability to fulfill orders on time. Ceragon's own filings have previously noted how approval delays have impacted its ability to meet demand. The company's ability to successfully execute its strategy and meet its 2026 targets will depend not only on securing new contracts but also on adeptly navigating these external pressures in a dynamic global market.