Extreme Networks Inc
Q4 2026 Earnings
Market Reaction
Did EXTR Beat Earnings? Q4 2026 Results
Extreme Networks closed its fiscal fourth quarter of 2026 on a strong note, posting results that beat Wall Street's expectations on both top and bottom lines and extending the company's consensus EPS beat streak to five consecutive quarters. The networking company reported non-GAAP EPS of $0.32, clearing the $0.29 consensus estimate by 10.34%, while revenue of $338.55 million edged past the $332.46 million forecast by 1.83% and grew 10.3% year-over-year, marking the sixth straight quarter of double-digit revenue growth. The primary engine behind the outperformance was accelerating cloud adoption, with SaaS ARR climbing 17.7% year-over-year to $244.30 million and the company's AI-enhanced Extreme Platform ONE accounting for over 30% of subscription bookings in its first year of general availability, doubling quarter-over-quarter in Q4. GAAP net income swung to $18.04 million from a loss of $7.80 million a year ago, underscoring improving operating leverage. Looking ahead, management guided full-year fiscal 2027 non-GAAP revenue of $1.38 billion to $1.40 billion and EPS of $1.28 to $1.33, projecting continued margin expansion as supply chain costs remain well managed.
- Sixth consecutive quarter of double-digit year-over-year revenue growth
- Ninth consecutive quarter of sequential product revenue growth
- Third consecutive quarter of gross margin improvement
- SaaS ARR grew 17.7% year-over-year to $244.3 million
- Extreme Platform ONE reached over 30% of subscription bookings and doubled quarter-over-quarter
- 187 customers ordered over $1 million in FY26
- Targeted pricing actions offsetting incremental supply chain costs
“We closed Fiscal 2026 delivering 13% year-over-year revenue growth, and the fourth quarter marked our sixth consecutive quarter of double-digit growth. These results are fueled by accelerating demand for our AI platform, a differentiated portfolio, strong execution, and broad product availability. This quarter further validates the competitive advantages we've created through our innovation, nimbleness, and supply chain leadership. We're winning more competitive deals, expanding with larger enterprises, and gaining share across our target markets. In Fiscal 2026, 187 customers ordered over one million dollars of Extreme solutions.”
Extreme Networks CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY27 (ending September 30, 2026), Extreme targets non-GAAP revenue of $334.0M to $339.0M, non-GAAP gross margin of 62.2% to 62.7%, non-GAAP operating margin of 14.7% to 15.3%, and non-GAAP EPS of $0.27 to $0.29. GAAP EPS guidance is $0.00 to $0.02, reflecting significant litigation charges and restructuring costs. For full-year FY27 (ending June 30, 2027), the company targets non-GAAP revenue of $1,380.0M to $1,400.0M, non-GAAP gross margin of 62.2% to 62.7%, non-GAAP operating margin of 16.7% to 17.1%, and non-GAAP EPS of $1.28 to $1.33. Management expects double-digit product revenue growth and continued solid gross margin driving strong EPS growth, with supply secured into FY28 and targeted pricing actions offsetting incremental supply chain costs.
EXTR YoY Financials
EXTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.