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Calix’s $302 Million Revenue Record — A Pivotal Test for Its AI Platform Strategy!

Calix, Inc. reported third-quarter 2026 results marked by record revenue of $302 million, reflecting a 3% sequential and 14% year-over-year increase. The company’s software and service revenue reached a record $52 million, growing 3% sequentially and 19% annually, driven by continued subscriber additions and market share gains. Backlog, measured by remaining performance obligations (RPOs), showed sequential growth of 2% and 12% year-over-year, reaching a record $396 million. Adjustments to RPOs excluded short-term contracts under one year, reducing distortion from hardware orders linked to the newly introduced Customer Supply Assurance Program, which provides customers non-cancelable appliance order commitments and price protections amid component cost volatility. Gross margin for the quarter stood at 53.5% on a non-GAAP basis, with software and service margins hitting a record 67.2%, up 340 basis points sequentially due to subscriber growth and platform optimizations. However, appliance gross margin declined 220 basis points sequentially to 50.