Extreme Networks beats Q2 profit estimates

Extreme Networks

28/01/2026 12:15

Overview

AI-driven cloud networking firm's fiscal Q2 revenue rose 14%, beating analyst expectations

Adjusted EPS for fiscal Q2 beat analyst expectations

SaaS ARR increased 25% yr/yr, reflecting strong customer demand

Outlook

Company targets Q3 revenue of $309.1-$314.1 mln and non-GAAP EPS of $0.23-$0.25

Extreme Networks expects FY26 GAAP EPS of $0.24-$0.29 and non-GAAP EPS of $0.98-$1.02

Result Drivers

MARKET SHARE GAINS - Extreme Networks attributed its revenue growth to gaining market share from larger competitors in enterprise networking

PLATFORM ONE SUCCESS - Extreme Platform ONE bookings were twice the company's plan, driven by customer demand for simplified operations and advanced AI

SUPPLY CHAIN MANAGEMENT - Despite changing supply chain conditions, Extreme remains confident in delivering solutions due to strong supplier relationships and operational agility

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$317.90 mln
$312.32 mln (8 Analysts)
Q2 Adjusted EPS
Beat
$0.26
$0.24 (8 Analysts)
Q2 EPS
$0.06
Q2 Adjusted Gross Margin
62.00%
Q2 Adjusted Operating Margin
15.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Extreme Networks Inc is $24.50, about 66.7% above its January 27 closing price of $14.70

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw5zZtVZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)