Extreme Networks Raises FY2027 Revenue Range to $1.4023–$1.4123 Billion
Key Facts
Extreme Networks raised its FY2027 revenue target to $1.4023–$1.4123 billion, from $1.380–$1.400 billion in its previous guidance issued in August. The company reported results on October 28, 2026, for the first quarter ended September 30, posting revenue of $341.1 million, up 10% year over year from $310.2 million. The chief executive said the company is now confident it can achieve 10% growth in the next quarter and the rest of the year. The higher annual range, together with expectations for growth to continue at a similar pace, indicates that management sees momentum extending beyond the start of the fiscal year. FY2027 includes a period ending June 30, 2027.
The improvement extended beyond sales: non-GAAP operating margin rose to 17.4% in the first quarter, compared with 13.3% a year earlier. Non-GAAP diluted earnings per share were $0.33, versus $0.22 in the year-earlier period. The company had set a quarterly target range for earnings per share of $0.27 to $0.29, putting the result above its previous guidance. This comparison is with the guidance announced by the company and does not by itself establish that earnings exceeded analyst estimates. The company also reported free cash flow of $38.6 million in the three months ended September 30, after using $20.9 million in the same period a year earlier.
In subscriptions, SaaS ARR reached about $264.7 million, up 22% year over year. The company attributed the acceleration to customer adoption of the Extreme Platform ONE platform, while its chief executive said platform bookings exceeded 50% of subscription bookings and were five times higher than a year earlier. SaaS ARR remains an operating metric separate from accounting revenue; it is not equivalent to, or a forecast of, revenue. The company also said customer engagement with Agent ONE Coworker during its first month of availability was about ten times that of its first conversational platform. These indicators link subscription business expansion to its new software products and the degree to which customers use them.
The chief financial officer said the company's supply chain measures enable it to take more targeted pricing actions than competitors while offsetting the additional costs facing the sector. This comes against the backdrop of the previous fiscal year, when Extreme Networks recorded revenue of $1.2836 billion in FY2026, up 12.6% year over year. In the fourth quarter of that year, revenue reached $338.6 million, up 10.3% year over year and 6.8% from the previous quarter. The company said 187 customers ordered solutions worth more than $1 million each during FY2026. These figures provide context on the demand base underpinning management's higher guidance for the new fiscal year, alongside subscription growth.
For the second fiscal quarter, ending December 31, 2026, the company targets revenue of $345.8 million to $350.8 million and non-GAAP earnings per share of $0.32 to $0.34. This revenue target is above the first-quarter result, while the earnings-per-share range is close to the latest result. In trading, EXTR shares closed at $22.70 on October 26, then at $24.44 on October 28, before ending the October 30 session at $22.61. The company also announced that Extreme Exchange zones, designed to run AI locally at enterprises, are planned for general availability during the first half of 2027. These announced dates and targets remain the next milestones for tracking the company's execution of its plan.