Network gear maker Ubiquiti Q4 profit rises on enterprise demand; higher costs hit margins

Ubiquiti

21/08/2026 12:16

Overview
Networking hardware maker's fiscal Q4 revenue rose 23.5% yr/yr, driven by Enterprise Technology
Non-GAAP EPS for fiscal Q4 rose 33.6% yr/yr
Company extended $500 mln stock buyback program through September 2027

Outlook
Company intends to pay at least $1.00 per share dividend each qtr in fiscal 2027
Ubiquiti warns that rising component costs may pressure near-term gross profit margins
Company says ongoing supply constraints could limit ability to meet customer demand

Result Drivers
ENTERPRISE TECHNOLOGY GROWTH - Revenue growth was driven by higher sales from the Enterprise Technology platform, partially offset by a decline in Service Provider Technology
HIGHER COMPONENT AND SHIPPING COSTS - Gross margin declined from the prior quarter due to increased component and shipping costs, partially offset by lower other indirect costs
INCREASED OPERATING EXPENSES - Operating expenses rose due to higher research and development and sales, general and administrative costs, including higher professional fees and credit card processing fees related to webstore sales

Company press release: ID:nBw3bD97ha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$937.30 mln
$850.50 mln (1 Analyst)
Q4 Adjusted EPS
Beat
$4.73
$4.03 (1 Analyst)
Q4 EPS
 
$4.70
 
Q4 Adjusted Net Income
 
$286.50 mln
 
Q4 Gross Margin
 
45.80%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "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 Ubiquiti Inc. is $826.00, about 43.9% above its August 20 closing price of $573.87
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 55 three months ago

Reuters Recommended Reads
Aug 20 - ScanSource Inc Q4 sales beat estimates on hardware demand
Aug 18 - Keysight Technologies Q3 revenue beats estimates on commercial communications strength 
Aug 19 - Analog Devices' quarterly forecast tops estimates on AI-fueled chip demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)