Overview

* Extreme Networks ( EXTR ) Q4 revenue up 20% yr/yr, beating analyst expectations

* Non-GAAP EPS for Q4 at $0.25, surpassing analyst estimates

* SaaS ARR increased 24% yr/yr, indicating strong subscription model growth

Outlook

* Extreme targets Q1 FY26 revenue between $292 mln and $300 mln

* Company expects Q1 FY26 non-GAAP EPS of $0.20 to $0.23

* Extreme sees FY26 revenue between $1,228 mln and $1,238 mln

* Company anticipates re-acceleration of revenue growth in FY26

Result Drivers

* GLOBAL DEMAND - Increased customer engagement in EMEA and APAC regions contributed to revenue growth, per CEO Ed Meyercord

* AI PLATFORM - Launch of Extreme Platform ONE, an AI-driven networking platform, is driving customer interest and market momentum

* EXPENSE MANAGEMENT - Prudent expense management led to strong cash flow, according to CFO Kevin Rhodes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $307 mln $299.90

Revenue mln (7

Analysts

)

Q4 Beat $0.25 $0.23 (7

Adjusted Analysts

EPS )

Q4 EPS -$0.06

Q4 62.3%

Adjusted

Gross

Margin

Q4 15.2%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "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 ( EXTR ) is $20.00, about 11.6% above its August 5 closing price of $17.67

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(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.)