Extreme Networks (EXTR) Q1 2027 Earnings
How Did EXTR Stock React to Q1 2027 Earnings?
Did EXTR Beat Earnings? Q1 2027 Results
Yes. Extreme Networks reported Q1 2027 earnings of $0.33 a share on Oct 28, 2026, beating the $0.28 consensus estimate by 18.5%. Revenue was $341.1M against a $336.8M estimate.
Extreme Networks posted a strong fiscal first quarter of 2027, beating Wall Street expectations on both the top and bottom lines and extending its consecutive quarterly EPS beat streak to six. The networking company reported adjusted EPS of $0.33, clearing the $0.28 consensus estimate by 18.53%, while revenue of $341.09 million edged past the $336.76 million forecast by 1.29% and grew 9.9% year-over-year. The standout driver behind the profitability surge was a dramatic expansion in operating leverage, with non-GAAP operating margin widening to 17.4% from 13.3% a year earlier, while free cash flow swung to $38.60 million from negative $20.90 million in the prior-year period. SaaS ARR climbed 22% to $264.70 million, fueled by accelerating adoption of Extreme Platform ONE, whose bookings now account for more than half of subscription bookings. Analysts tracking the stock have maintained a consensus price target of $32.25, reflecting confidence in the company's recurring revenue trajectory. Looking ahead, management guided Q2 revenue of $345.80 million to $350.80 million and full-year FY27 revenue of $1.40 billion to $1.41 billion, with non-GAAP EPS of $1.35 to $1.39.
- Seventh consecutive quarter of double-digit year-over-year revenue growth
- SaaS ARR grew 22% YoY to $264.7 million driven by Extreme Platform ONE adoption
- Platform ONE bookings now over 50% of subscription bookings, up 5x from prior year
- Non-GAAP operating margin expanded to 17.4% from 13.3% a year ago
- Adjusted EBITDA grew 47% year-over-year to $65.6 million
- Product revenue grew by $24.3 million YoY; Subscription and support revenue grew by $6.6 million YoY
“Extreme delivered its seventh consecutive quarter of double-digit year-over-year growth in Q1. Demand for Extreme Platform ONE continues to accelerate, with strong quarter-over-quarter subscription gains. Platform ONE bookings are now over 50% of subscription bookings, up 5x from the prior year. Based on the strength of our business and visibility of demand for our solutions, we are confident in calling 10% growth next quarter and for the rest of the year. The combination of our unique enterprise fabric solution, our differentiated Wi-Fi 7 offerings, and the most modern agentic AI management platform is giving us an advantage in the marketplace.”
Extreme Networks CEO, on the earnings call
What Is Extreme Networks's Outlook?
For Q2 FY27 (ending December 31, 2026), Extreme targets revenue of $345.8M–$350.8M, non-GAAP gross margin of 62.2%–62.7%, non-GAAP operating margin of 16.4%–17.4%, and non-GAAP EPS of $0.32–$0.34. For full-year FY27 (ending June 30, 2027), the company targets revenue of $1,402.3M–$1,412.3M, non-GAAP gross margin of 62.3%–62.8%, non-GAAP operating margin of 17.2%–17.6%, and non-GAAP EPS of $1.35–$1.39. Management expressed confidence in sustaining 10% growth through the rest of the year, citing strong demand visibility and supply chain actions that allow more measured pricing actions than competitors while offsetting incremental supply chain costs.
EXTR YoY Financials
| Metric | Q1 2027 | Q1 2026 | Year over year |
|---|---|---|---|
| Revenue | $341.1M | $310.3M | +9.9% |
| Gross Profit | $211.9M | $188.0M | +12.7% |
| Operating Income | $23.1M | $11.3M | +104.4% |
| Net Income | $16.0M | $6.5M | +146.5% |
EXTR Revenue by Segment
When Does Extreme Networks Report Next?
Figures from SEC filings and company reports. Not investment advice.