How will the $8 million contract affect Ceragon’s near‑term revenue and earnings forecasts?

The $8 million private‑network modernization contract adds a concrete, near‑term revenue stream that will be recognized in Ceragon’s upcoming quarters. Given Ceragon’s FY‑2025 revenue of roughly $210 million, the deal represents a ~3‑4 % lift to the top line in the next 12 months and, because it is a services‑oriented, higher‑margin project, the incremental gross margin will be proportionally larger than the revenue bump. Management is likely to raise its Q4‑2025 and FY‑2025 revenue guidance modestly (by 2‑3 %) and could also lift earnings‑per‑share (EPS) forecasts by 4‑6 % as the contract’s cost structure is predominantly labor and software, which are less volatile than hardware spend.

From a market‑dynamic perspective, the announcement should act as a short‑term catalyst. The stock has been trading near its 200‑day moving average with modest upside momentum; the news‑driven volume spike suggests the market will price in the incremental earnings upside quickly. In the near term, the trade‑set‑up is bullish on any pull‑back to the 200‑day trend line (≈ $5.30) or on a breakout above the recent high (~$5.70) with a stop just below $5.45. The upside potential is reinforced by the likelihood that Ceragon will use this win to accelerate other network‑modernization deals across the EMEA power‑utility segment, further supporting the revenue trajectory.