Consensus revenue for the third quarter of 2026 is projected at $5.61 billion with an EPS of $0.14, while the stock currently trades around $9.45, just above the average analyst price target of $9.30.
Investors are primarily focused on the expansion of adjusted gross margins in the Networks segment, which management has targeted in the 48-50% range for the period.
Supporting the outlook is the ongoing recovery of North American infrastructure spending and the strategic rollout of programmable networks through the company’s recent joint venture with global operators.
Market participants will also scrutinize the impact of component cost inflation as the firm navigates a challenging global telecom hardware environment characterized by cautious operator spending.