Extreme Networks, Inc.

Fourth-quarter revenue was $339 million, up 10% year over year and 7% sequentially. Non-GAAP EPS was $0.32, up 28% year over year and 23% sequentially. Gross margin was 62.7%, above guidance, and operating margin was 15.7%, up from 15.2% a year ago. SaaS ARR was $244 million, up 18% year over year, and EBITDA was $59 million at a 17.5% margin. For the full fiscal year 2026, revenue was $1.28 billion, up 13%; non-GAAP EPS was $1.06, up from $0.84; operating margin was 14.8%, up 60 basis points; and EBITDA was $210 million, up 20%. Guidance for fiscal Q1 2027 calls for revenue of $334 million to $339 million, gross margin of 62.2% to 62.7%, operating margin of 14.7% to 15.3%, and EPS of $0.27 to $0.29. Full-year fiscal 2027 guidance is revenue of $1.38 billion to $1.4 billion, gross margin of 62.2% to 62.7%, operating margin of 16.7% to 17.1%, EPS of $1.28 to $1.33, and a 23% non-GAAP tax rate.

Ed Meyercord emphasized that fiscal 2026 showed Extreme taking share, moving upmarket, and benefiting from a differentiated portfolio centered on Platform ONE, Fabric, Wi-Fi 7, and Agentic AI features. He said the company has eliminated supply constraints, sees a favorable market backdrop, and believes it can continue outpacing market growth while migrating customers to Platform ONE. His tone was notably confident, especially around innovation, competitive wins, and the idea that earnings can grow faster than sales as the model scales.

Kevin Rhodes highlighted that Q4 revenue, gross margin, and EPS all beat the high end of guidance, with gross margin at 62.7% helped by pricing actions and supply-chain cost management. He cited $65 million of cash flow, $47 million of net cash, $25 million of share repurchases in the quarter, and $87 million of buybacks for the full year. He also pointed to a $500 million revolving credit facility to improve liquidity and reduce interest expense, while guiding fiscal 2027 revenue to $1.38 billion to $1.4 billion and EPS to $1.28 to $1.33.

Analysts focused on whether recent growth reflected technology wins or supply constraints, and management said it is increasingly seeing competitors’ lead times stretch, which could help Extreme’s funnel convert over the next few quarters. On Platform ONE and SaaS ARR, management said the lower Q4 ARR growth was against a tough comparison and that feature releases in the second half should help drive growth back toward the mid-20% range by fiscal year-end. Questions also probed pricing and gross margin: management confirmed both November and March price increases are now fully in quotes, but said the company is balancing price with discounting while keeping margins moving higher.