| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 69.4x | 17.8x | Bottom tier | |
Growth | 57 | 12.6% | 7.1% | Around median | |
Quality | 93 | 18.1% | 4.5% | Top tier | |
Safety | 52 | — | 2.6x | Around median | |
Capital Return | 81 | — | 2.12% | Top tier | |
Momentum | 69 | 56.9% | 2.9% | Top tier | |
Sentiment | 35 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Extreme Networks sells wired and wireless enterprise networking solutions, combining network hardware with cloud management software, subscriptions, and maintenance services. Its strategy centers on Platform ONE, a unified AI-powered platform that integrates Enterprise Fabric, alongside Wi‑Fi 7 products, the Multi‑Beam Wireless solution, and the MSP Workspace program; this enables the company to generate product revenue alongside recurring software and services revenue. In Q4 fiscal 2026, recurring revenue was $116 million out of total revenue of $339 million, or about 34% of the mix.
In Q4 fiscal 2026, revenue increased 10% year over year and 7% sequentially to $339 million, exceeding the high end of management guidance and analyst consensus. Non-GAAP gross margin was 62.7%, operating margin was 15.7%, and adjusted EPS was $0.32, up 28% year over year. The company also recorded $59 million in EBITDA at a 17.5% margin and generated $65 million in cash flow.
For fiscal 2026, Extreme Networks recorded revenue of $1.28 billion, up 13%, with product revenue growth of 15% and adjusted EPS of $1.06, up 26%. Operating margin increased to 14.8% from 14.2%, and EBITDA reached $210 million, up 20%. The latest available quarterly EDGAR data, for Q3 fiscal 2026, showed revenue of $316.9 million, gross profit of $195.5 million, net income of $10.6 million, and EPS of $0.08.
Automated analysis for informational purposes only — not investment advice.
The stock carries a “Buy” consensus, with an average price target of $33 and a target range of $28 to $39; the average is only a limited distance from the 52-week high of $33.73, versus a low of $13.48. No published P/E ratio is available, so the valuation rests primarily on Extreme Networks' ability to achieve fiscal 2027 guidance and reaccelerate SaaS ARR, while taking into account that the stock's decline of more than 25% following the August 7, 2026 results reflected market concern about slowing growth despite guidance being in line with expectations.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Extreme Networks generated revenue of $339 million, up 10% year over year and 7% sequentially, exceeding the high end of guidance and consensus. Adjusted gross margin was 62.7% and operating margin was 15.7%. Adjusted EPS reached $0.32, up 28%, and the company recorded $59 million in EBITDA and $65 million in cash flow.
Platform ONE accounted for nearly half of subscription bookings in Q4 fiscal 2026, compared with 30% during its first year of general availability. Platform bookings exceeded $50 million versus a target of approximately $40 million. Management aims to migrate half of the installed base to Platform ONE by the end of fiscal 2027, supporting recurring revenue growth and margin expansion.
SaaS ARR reached $244 million in Q4 fiscal 2026, up 18% year over year. Growth was slower than the 24% recorded in the comparable period, which benefited from large deals with John Deere and the Japanese government. Management expects growth to return to the mid-twenties range by the end of fiscal 2027, supported by expanded Platform ONE capabilities and the migration of additional groups of Fabric customers.
The company expects revenue of between $1.38 billion and $1.40 billion in fiscal 2027. Expected gross margin ranges from 62.2% to 62.7%, and operating margin from 16.7% to 17.1%. It also expects adjusted EPS of between $1.28 and $1.33, representing growth of more than 20% according to management, with continued double-digit product revenue growth.
Wi‑Fi 7 now represents more than half of wireless product bookings and revenue, while the Multi‑Beam Wireless solution combined Wi‑Fi 7 with MatSing technology in the new Nissan Stadium project. The company also won a Nottingham City Council contract covering Fabric, SD‑WAN, and cloud management across 74 sites. Other Platform ONE deals include University of Technology Sydney, Vandalia Health, and U.K. Health Security Agency, along with its first multimillion-dollar, multiyear enterprise agreement with a major healthcare provider in the Middle East.
A report dated August 7, 2026, stated that the stock fell more than 25% despite fiscal 2026 revenue growth of about 12.6% and a 17.7% increase in SaaS ARR. Concern focused on the slowing growth rate, as revenue increased 10% in Q4 fiscal 2026 and fiscal 2027 guidance implies overall growth of about 8% to 9%. This occurred despite quarterly results exceeding management guidance and consensus, and the company providing a fiscal 2027 EPS range of $1.28 to $1.33.
