Ubiquiti Q2 revenue rises 35.8% on Enterprise Technology platform strength

Overview

• Networking infrastructure firm's fiscal Q2 revenue rose 35.8% yr/yr

• Company declared $0.80 per share cash dividend payable in February 2026

• Adjusted EPS for fiscal Q2 was $3.88

Outlook

• Company did not provide specific guidance for future quarters or full-year outlook

Result Drivers

• ENTERPRISE TECHNOLOGY - Revenue growth driven by Enterprise Technology platform, up from $518.2 mln to $729.0 mln

• GROSS MARGIN IMPROVEMENT - Gross margin increased to 45.9% from 41.2% year-over-year, driven by favorable product mix and lower shipping costs

• R&D EXPENSES - R&D expenses rose due to higher prototype-related and employee-related costs

Key Details

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 $587.50, about 2% above its February 5 closing price of $576.00

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 64 three months ago

Press Release: ID:nBw9XyKsDa

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