Extreme Networks beats Q2 profit estimates

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

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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