Core Insights - The artificial intelligence (AI) infrastructure segment is expected to maintain strong momentum in 2026, driven by robust demand, despite concerns over the high valuations of major AI companies [2][3]. Company Summaries Calix Inc. (CALX) - Calix reported adjusted earnings of $0.39 per share for Q4 2025, exceeding the Zacks Consensus Estimate of $0.38, and significantly up from $0.08 per share a year ago [4]. - Quarterly revenues reached $272.45 million, surpassing the Zacks Consensus Estimate by 0.90% [4]. - The company has integrated AI into its cloud platform to enhance operations and service delivery for broadband providers, with major clients including Lumen Technologies and Verizon [6]. - Calix's expected revenue and earnings growth rates for the current year are 15.6% and 41.5%, respectively, with a 4.9% improvement in the earnings estimate over the last 30 days [7]. Teradata Corp. (TDC) - Teradata reported adjusted earnings of $0.74 per share for Q4 2025, beating the Zacks Consensus Estimate of $0.55, and up from $0.53 per share a year ago [8]. - Total revenues were $421 million, exceeding the Zacks Consensus Estimate by 6.52% [8]. - The company is expected to benefit from improved annual recurring revenue (ARR) growth, cost savings, and productivity measures, which will drive free cash flow [9]. - Teradata's innovative AI capabilities and new product rollouts are anticipated to enhance its analytics offerings and drive long-term growth [10][12]. - The expected revenue and earnings growth rates for Teradata are -2.1% and -3.9%, respectively, with a 0.4% improvement in the earnings estimate over the last 90 days [13]. Lumen Technologies Inc. (LUMN) - Lumen reported adjusted earnings of $0.23 per share for Q4 2025, contrasting with a loss of $0.21 per share as per the Zacks Consensus Estimate, and an adjusted loss of $0.09 per share in the prior year [14]. - Total revenues were $3.041 billion, down 8.7% year over year, and missed the Zacks Consensus Estimate by 1.4% [14]. - The company is focusing on AI-driven solutions, securing $13 billion in Private Connectivity Fabric (PCF) deals by the end of 2025, with revenues of $41 million and $116 million recognized in Q4 and full-year 2025, respectively [15][16]. - Lumen's active customers for its network-as-a-service (NaaS) platform grew by 29% quarter over quarter, indicating strong demand for its services [17]. - The expected revenue and earnings growth rates for Lumen are -12.4% and 15.4%, respectively, with a significant improvement in the earnings estimate of over 100% in the last seven days [18].

Key Takeaways CALX beat Q4 estimates with EPS of $0.39 on $272.45M in revenues.TDC topped Q4 forecasts as AI-driven data workloads and new tools fuel growth plans.LUMN secured $13B in AI-linked PCF deals, boosting NaaS demand and customer growth. The momentum of the artificial intelligence (AI) infrastructure segment is likely to continue in 2026. The AI space remains rock solid supported by an extremely bullish demand scenario. A section of financial experts and analysts is concerned about the highly overs ...

Core Insights - Calix (CALX) is set to announce its fourth-quarter 2025 results on January 28, 2026, with anticipated non-GAAP revenues between $267 million and $273 million, reflecting a 2% sequential increase and 20% year-over-year growth [1] - The Zacks Consensus Estimate for fourth-quarter earnings remains steady at $0.38 per share, indicating a significant 375% year-over-year increase, while the revenue consensus is pegged at $270.03 million, representing a 31.01% year-over-year growth [2] Group 1: Financial Performance Expectations - Calix's fourth-quarter performance is expected to benefit from strong customer demand, following record revenues in the third quarter of 2025, with a projected non-GAAP gross margin increase to 57.75% [4] - The company added 20 new customers in the third quarter of 2025, which is expected to contribute to revenue growth in the upcoming quarter as these customers begin deploying Calix solutions [5] - Calix's remaining performance obligations (RPOs) grew 2% sequentially to $355 million and increased 20% year-over-year, indicating strong demand for its cloud platform services [6] Group 2: Strategic Initiatives and Investments - Investments in AI are anticipated to significantly impact Calix's fourth-quarter performance, with new AI features aimed at simplifying operations and enhancing customer satisfaction [7] - The company has a strong balance sheet with record cash and investments of $340 million, supporting ongoing investments in AI and international expansion [8] Group 3: Earnings Guidance and Market Position - Calix expects sequential revenue growth driven by strong demand, new customers, and rising gross margins, with non-GAAP EPS guidance between $0.35 and $0.41 [10] - The company currently has an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook for potential earnings performance [11]

Industry Overview - The artificial intelligence (AI) infrastructure segment is experiencing significant momentum, driven by a bullish demand scenario, which is expected to transform the world over the next five years [2]. Company Summaries Innodata Inc. (INOD) - Innodata is positioned as a key partner in the AI revolution, providing essential data for training advanced language models, with a long-term growth outlook supported by major tech companies and diverse customer bases [6][7]. - The company has launched a GenAI Test and Evaluation Platform to validate large language models, enhancing its capabilities in AI data and integration [8][10]. - Innodata's expected revenue and earnings growth rates for the next year are 24.1% and 35.6%, respectively, with a Zacks Consensus Estimate for earnings improving by 1.7% over the last 30 days [11]. Calix Inc. (CALX) - Calix provides cloud and software platforms for communication service providers, integrating AI to enhance operations and subscriber engagement [13][14]. - The company has an expected revenue growth rate of 12.4% and an earnings growth rate of 35.3% for the next year, with the Zacks Consensus Estimate for earnings improving by 8.3% over the last 60 days [14]. Five9 Inc. (FIVN) - Five9 specializes in contact center software solutions, benefiting from increased subscription revenues and the adoption of AI tools in its services [16][19]. - The company has an expected revenue and earnings growth rate of 9.7% and 8.3%, respectively, for the next year, with the Zacks Consensus Estimate for earnings improving by 1.3% over the last 30 days [21].