Extreme Networks (EXTR) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenue grew 13% year-over-year, marking the sixth consecutive quarter of double-digit growth, with EPS up 26% and strong demand for AI-powered networking and robust supply chain management.

• SaaS ARR increased 18% year-over-year to $244 million, with Extreme Platform ONE accounting for nearly half of Q4 subscription bookings and over 30% in its first year.

• Accelerated move upmarket, winning 187 customers with orders exceeding $1 million and expanding in large enterprises and strategic sectors.

• Innovation in Extreme Platform ONE, Extreme Fabric, and Wi-Fi 7 drove competitive wins and rapid customer adoption.

• Secured supply chain into fiscal 2028, enabling reliable delivery and creating tailwinds as competitors face constraints.

Financial highlights

• Q4 revenue reached $339 million, up 10% year-over-year and 7% sequentially, exceeding guidance; SaaS ARR was $244.3 million, up 17.7% year-over-year.

• Gross margin improved to 62.7% in Q4; Q4 EPS was $0.32, up 28% year-over-year; full-year revenue was $1.28 billion, up 13% year-over-year; non-GAAP EPS was $1.06, up 26%.

• EBITDA for the year was $210 million, up 20% year-over-year; Q4 EBITDA margin reached 17.5%.

• Q4 ending cash balance was $211.8 million; net cash was $47 million.

• Repurchased $87 million in shares during fiscal 2026, including $25 million in Q4.

Outlook and guidance

• Fiscal 2027 revenue expected at $1.38–$1.4 billion, gross margin 62.2%–62.7%, operating margin 16.7%–17.1%, and non-GAAP EPS $1.28–$1.33.

• Q1 fiscal 2027 guidance: revenue $334–$339 million, gross margin 62.2%–62.7%, non-GAAP EPS $0.27–$0.29.

• Double-digit product revenue growth and over 20% EPS growth targeted for fiscal 2027; SaaS ARR growth expected to re-accelerate to mid-20% range by year-end.