Calnex flags double-digit revenue growth, improved profitability

13th Apr 2026 11:01

(Sharecast News) - Calnex Solutions reported double-digit revenue growth and improved profitability for the 2026 financial year on Monday, with trading slightly ahead of market expectations as the group continued to diversify beyond its core telecoms market.

The AIM-traded provider of test and measurement solutions said it expected revenue for the year ended 31 March to have risen around 19% to £21.9m from £18.4m in the 2025 period.

Gross margins remained strong, supporting improved profitability, while the group ended the year with cash of £9.3m, down from £10.9m a year earlier.

It added that a further £3m of customer receipts is expected in the early months of the new financial year due to shipment phasing in the fourth quarter.

Calnex said diversification into cloud computing and datacentre markets, as well as government and defence, continued to gain traction during the year, helping offset a stable telecoms market and underpinning confidence in further growth.

The group also expanded its global partner network, including onboarding new North American partners, and increased its focus on partner enablement to improve sales coverage in higher-growth markets.

Looking ahead, the company said the 2027 period would be a year of targeted investment to support key product launches and strengthen customer relationships, with the board confident of accelerating growth into 2028.

It highlighted growing demand linked to hyperscaler investment in artificial intelligence, with its network emulation SNE product progressing through development and expected to begin generating revenue in the latter part of 2027.

Calnex added that its Sentry product continues to perform strongly in the datacentre market, while its Paragon Neo-S 800 Gb/s synchronisation testing product has seen success across telecoms and datacentres.

Development was underway on a next-generation 1.6Tb/s product, targeted for launch in the 2028 financial year, which is already attracting customer interest.

The group also pointed to a partnership agreed in November 2025 with VIAVI Solutions as supporting its go-to-market strategy and expanding its reach across telecoms, datacentre and defence sectors.

"I am pleased to report on a good performance in 2026, our 20th year of operations, delivered against a challenging global macroeconomic backdrop," said chief executive and founder Tommy Cook.

"We achieved double digit revenue growth and improved profitability, reflecting the successful diversification beyond our core telecoms heritage.

"With a strong balance sheet, expanding partner network, increasingly developed and diversified offering, and strengthened sales and marketing capability we are well positioned to build on this momentum and deliver sustainable growth in the 2027 financial year and beyond."

Calnex said it expected to report its audited full-year results on 26 May.

At 1233 BST, shares in Calnex Solutions were up 12.47% at 54.55p.

Reporting by Josh White for Sharecast.com.

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