Extreme Networks Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did EXTR Beat Earnings? Q1 2026 Results
Extreme Networks posted a stronger-than-expected fiscal Q1 2026, with revenue of $310.25 million rising 15.3% year-over-year and edging past the $295.72 million consensus by 4.91%, while non-GAAP EPS of $0.22 cleared the $0.21 estimate by 2.56%, marking the company's sixth consecutive quarter of sequential revenue growth. The primary engine was product revenue, which climbed to $194.04 million from $162.28 million a year ago, complemented by SaaS ARR expanding 24.2% to $216.20 million as the company's subscription transition gained traction. The quarter also saw a meaningful profitability shift, with GAAP operating income reaching $11.29 million compared to a loss of $4.72 million in the year-ago period. Gross margins compressed modestly to 61.3% on a non-GAAP basis from 63.7%, a dynamic that rattled investors despite the otherwise solid print, sending shares sharply lower after results. Looking ahead, Extreme guided Q2 revenue of $309.00 million to $315.00 million with non-GAAP EPS of $0.23 to $0.25, and set full-year FY2026 revenue guidance at $1.25 billion to $1.26 billion, implying roughly 10% growth at the midpoint.
- Improved execution and increasing customer demand
- Expanding interest in AI-powered networking platform
- SaaS ARR up 24.2% year-over-year to $216.2 million
- Six consecutive quarters of sequential revenue growth
- Three consecutive quarters of double-digit year-over-year revenue gains
- Share gains in the Americas with increased customer engagement in EMEA and APAC
“The strength of our first quarter results was driven by improved execution, increasing customer demand and expanding interest in our AI-powered networking platform and our high-performance solutions. This marked six consecutive quarters of revenue growth and three straight quarters of double-digit year-over-year gains, which is a positive sign that we are gaining share. ARR is up 24% year-over-year, as momentum grows with our subscription model. Continuing share gains in the Americas along with increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by significant wins this quarter.”
Extreme Networks CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q2 2026 (ending December 31, 2025), Extreme targets total net revenue of $309.0 million to $315.0 million, GAAP EPS of $0.03 to $0.06, non-GAAP EPS of $0.23 to $0.25, GAAP gross margin of 60.8% to 61.4%, non-GAAP gross margin of 61.4% to 62.0%, GAAP operating margin of 2.6% to 4.0%, and non-GAAP operating margin of 13.4% to 14.6%. For full-year fiscal 2026 (ending June 30, 2026), the company targets total net revenue of $1,247.0 million to $1,264.0 million, representing approximately 10% growth at the midpoint. CFO Kevin Rhodes noted that earnings and cash flow expectations have improved beyond initial forecasts.
EXTR YoY Financials
EXTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.