Digi International Target Raised to $90 Following Record Q3 Earnings

Key Facts

Reflecting growing optimism in the IoT sector, Roth Capital has raised its price target for Digi International to $90. This move follows the company's record-breaking third fiscal quarter, where revenue reached $139 million, surpassing market consensus. The company also reported earnings per share of $0.75, beating the analyst estimate of $0.67, driven by robust demand for its Internet of Things products and services.

The financial results highlighted significant growth in operational metrics, with Annual Recurring Revenue (ARR) climbing to a record $191 million, signaling predictable future income streams. According to analyst reports, cash flow from operations surged by 38% year-over-year to $33 million, while adjusted EBITDA hit a record $40 million, demonstrating a substantial improvement in the company's overall profitability and margin management.

Looking ahead, the company has raised its guidance for the fourth quarter, forecasting revenue between $138 million and $142 million. While specific price data for DGII was unavailable at the close of August 7, 2026, investors are focused on the stock's potential to reach the new $90 target. Market participants are also monitoring upcoming US economic catalysts, such as the ISM Manufacturing PMI, which could influence broader sentiment in the technology and industrial sectors.