Companies /Technology

Extreme Networks Inc

NASDAQ: EXTR Communication Equipment
$22.90
â–² $0.06 (+0.26%) today
Markets open · 1:24pm ET

Q2 2026 Earnings

Reported Jan 28, 2026, 7:08am ET · SEC source
$0.26
Beat +7.88%
EPS · est. $0.24
$317.9M
Beat +1.79%
Revenue · est. $312.3M
−3.8%
Trailing market
EXTR vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−15%−10%−5%0Jan 28Jan 29report 7:08am ETearnings−1.0%−13.7%
−15%−10%−5%0Jan 28Jan 29earnings−1.0%−13.7%
EXTR −13.7%S&P 500 −1.0%
−15%−10%−5%0Jan 28Jan 29report 7:08am ETearnings−1.7%−13.7%
−15%−10%−5%0Jan 28Jan 29earnings−1.7%−13.7%
EXTR −13.7%NASDAQ −1.7%
−12%−8%−4%0Jan 27Feb 4report 7:08am ETearnings−1.2%−7.1%
−12%−8%−4%0Jan 27Feb 4earnings−1.2%−7.1%
EXTR −7.1%S&P 500 −1.2%
−12%−8%−4%0Jan 27Feb 4report 7:08am ETearnings−4.4%−7.1%
−12%−8%−4%0Jan 27Feb 4earnings−4.4%−7.1%
EXTR −7.1%NASDAQ −4.4%
+2.18%
Day of report
−4.33%
Next session
−0.13%
One week
−5.13%
30 days

S&P 500 over the same 30 days: −1.30%.

Did EXTR Beat Earnings? Q2 2026 Results

Extreme Networks posted a clean beat across the board in fiscal Q2 2026, with revenue of $317.93 million rising 13.8% year-over-year and non-GAAP EPS of $0.26 clearing the $0.24 consensus estimate by 7.88%, as the enterprise networking company continued to gain traction in cloud subscriptions. The standout driver was SaaS annual recurring revenue, which climbed 25.2% year-over-year to $226.80 million, underscoring the company's ongoing shift toward higher-margin, recurring software income. Free cash flow surged to $43.00 million from $16.10 million a year earlier, while net cash improved to $47.30 million, compared to net debt of $14.70 million in the prior-year period. CEO Ed Meyercord pointed to competitive wins against larger enterprise networking incumbents and noted that bookings for the Extreme Platform ONE product came in at twice the internal plan for the quarter, a dynamic that also fueled recent investor interest in the company's AI-enabled education networking push. Looking ahead, management raised its full-year fiscal 2026 revenue outlook to $1.26 billion to $1.27 billion, with non-GAAP EPS of $0.98 to $1.02.

Key Takeaways
  • Seven consecutive quarters of sequential revenue growth
  • SaaS ARR up 25.2% year-over-year to $226.8 million
  • Extreme Platform ONE bookings were twice plan
  • Non-GAAP operating margin expanded to 15.0% from 14.7% YoY
  • Earnings growth exceeded revenue growth by 10 percentage points

“Extreme is taking share from the largest players in enterprise networking, which is reflected in seven consecutive quarters of sequential revenue growth.”

Extreme Networks CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q3 2026 (ending March 31, 2026), Extreme targets revenue of $309.1M to $314.1M, GAAP EPS of $0.03 to $0.06, non-GAAP EPS of $0.23 to $0.25, GAAP gross margin of 60.4%–60.8%, and non-GAAP gross margin of 61.0%–61.4%. For the full fiscal year 2026 (ending June 30, 2026), the company raised its revenue outlook to $1,262.0M to $1,270.0M, with GAAP EPS of $0.24 to $0.29, non-GAAP EPS of $0.98 to $1.02, and non-GAAP operating margin of 14.3%–14.8%. The company continues to focus on increasing profitability while navigating the current supply chain environment.

EXTR YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$90.0M$180.0M$270.0M$279.3M$317.9MRevenue$171.5M$195.1MGross Profit$13.7M$13.0MOperating Income$7.4M$7.9MNet Income
$0$90.0M$180.0M$270.0MRevenueGross ProfitOperating IncomeNet Income

EXTR Revenue by Segment

Product$197.8M+14.8%
Subscription and Support$120.2M+12.2%

Figures from SEC filings and company reports. Not investment advice.