Extreme Networks (NASDAQ:EXTR) Posts Earnings Results, Beats Expectations By $0.02 EPS

Extreme Networks (NASDAQ:EXTR) released its quarterly earnings results on Wednesday. The technology company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.24 by $0.02, FiscalAI reports. The business had revenue of $317.93 million for the quarter, compared to analysts’ expectations of $312.33 million. Extreme Networks had a net margin of 0.73% and a return on equity of 81.83%. Extreme Networks’s revenue was up 13.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.21 earnings per share. Extreme Networks updated its Q3 2026 guidance to 0.230-0.250 EPS and its FY 2026 guidance to 0.980-1.020 EPS.

Here are the key takeaways from Extreme Networks’ conference call:

• Q2 revenue of $318 million beat guidance and rose 14% year-over-year, marking the company’s seventh consecutive quarter of revenue growth and a 25% increase in SaaS ARR to $227 million.
• Management highlighted strong upmarket traction with 34 deals over $1 million and multiple multimillion-dollar Platform One and Campus Fabric wins across retail (3,000 stores), healthcare, education, stadiums and government.
• Non-GAAP gross margin was 62%, but Q3 guidance calls for a modest margin dip to 61.0%–61.4% due to several low-margin, large professional-services installations; full-year revenue guidance was raised to $1.262B–$1.270B with EPS of $0.98–$1.02.
• Company says it has pricing power and supply-chain agility—a ~7% price increase was absorbed by customers and teams sourced alternative DDR4 memory and other components to mitigate shortages and protect margins.
• Differentiation in AI and channel strategy — the Platform One agentic AI core, end-to-end Campus Fabric and new Extreme Partner First program helped MSP partners nearly double and billings grow >3x year-over-year, supporting recurring revenue momentum.

Extreme Networks Trading Down 4.3%

EXTR stock traded down $0.65 during mid-day trading on Thursday, reaching $14.37. The company’s stock had a trading volume of 3,352,433 shares, compared to its average volume of 1,737,813. Extreme Networks has a 12 month low of $10.10 and a 12 month high of $22.89. The company has a current ratio of 0.91, a quick ratio of 0.75 and a debt-to-equity ratio of 2.32. The company has a market cap of $1.92 billion, a price-to-earnings ratio of 205.29, a price-to-earnings-growth ratio of 1.63 and a beta of 1.64. The business’s 50 day moving average price is $16.60 and its 200 day moving average price is $18.68.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Weiss Ratings lowered shares of Extreme Networks from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, January 16th. Bank of America started coverage on Extreme Networks in a research report on Wednesday, November 19th. They set a “buy” rating and a $24.00 price target for the company. UBS Group reiterated a “neutral” rating and issued a $17.00 price target on shares of Extreme Networks in a research note on Thursday. Rosenblatt Securities reiterated a “buy” rating and set a $25.00 price target on shares of Extreme Networks in a report on Thursday. Finally, Needham & Company LLC cut their price objective on shares of Extreme Networks from $24.00 to $21.00 and set a “buy” rating for the company in a research report on Thursday. Six research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $22.67.

Insider Buying and Selling

In related news, CEO Edward Meyercord sold 50,000 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $16.54, for a total transaction of $827,000.00. Following the transaction, the chief executive officer directly owned 1,871,418 shares of the company’s stock, valued at approximately $30,953,253.72. This represents a 2.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.60% of the stock is owned by insiders.

Institutional Trading of Extreme Networks

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CIBC Bancorp USA Inc. purchased a new position in shares of Extreme Networks during the third quarter valued at approximately $291,000. Caitong International Asset Management Co. Ltd purchased a new stake in Extreme Networks during the 3rd quarter worth about $31,000. Dark Forest Capital Management LP boosted its stake in Extreme Networks by 10.5% in the 3rd quarter. Dark Forest Capital Management LP now owns 58,902 shares of the technology company’s stock worth $1,216,000 after purchasing an additional 5,602 shares during the period. PharVision Advisers LLC bought a new stake in shares of Extreme Networks during the third quarter valued at about $298,000. Finally, Alyeska Investment Group L.P. boosted its position in shares of Extreme Networks by 15.4% in the third quarter. Alyeska Investment Group L.P. now owns 739,345 shares of the technology company’s stock valued at $15,267,000 after acquiring an additional 98,791 shares during the period. 91.05% of the stock is owned by institutional investors.

Trending Headlines about Extreme Networks

Here are the key news stories impacting Extreme Networks this week:

• Positive Sentiment: Q2 results beat expectations: EXTR reported $0.26 EPS vs. $0.24 consensus and revenue of $317.9M (+13.8% YoY), signaling continued growth momentum. Extreme Networks Reports Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Raised guidance: management set Q3 FY26 EPS guidance of $0.230–0.250 (vs. ~0.19 consensus) and FY26 EPS of $0.980–1.020 (well above street prior consensus), which is constructive for future earnings expectations. Press Release / Slide Deck
• Positive Sentiment: Commercial traction: CEO said Extreme is taking share from larger competitors and Platform ONE bookings were “twice our plan,” supporting revenue durability and addressable?market gains. Extreme Networks reports seventh back-to-back quarter of growth
• Neutral Sentiment: Earnings call materials and transcripts are posted (provides more detail on gross margin, bookings mix and subscription trends for active investors to review). Earnings Call Transcript
• Neutral Sentiment: Market data on short interest reported is inconsistent in feeds (shows effectively zero in the cited note), so short?interest signals are unclear right now.
• Negative Sentiment: Analyst divergence: Needham trimmed its price target from $24 to $21 (still a buy), introducing some caution; Rosenblatt reaffirmed a $25 target (positive). Mixed analyst moves can drive short?term volatility. Benzinga analyst notes
• Negative Sentiment: Technical/valuation and balance sheet context: the stock is trading below its 50- and 200-day moving averages, and the company has a relatively high debt/equity (~2.3) and an elevated P/E — factors that can amplify downside despite the beat/guidance.

About Extreme Networks

Extreme Networks, Inc (NASDAQ: EXTR) is a global provider of end-to-end networking solutions designed to support enterprise, data center, and service provider environments. The company’s product portfolio encompasses high-performance wired and wireless access switches, routers, network security appliances, and software-defined networking (SDN) tools. Driven by a cloud-native management architecture, Extreme’s Intelligent Edge Platform integrates network analytics, automation and orchestration capabilities to help organizations optimize performance, reduce operational complexity and strengthen security.

Since its founding in the mid-1990s and subsequent public listing in 1999, Extreme Networks has expanded its technology footprint through targeted acquisitions.