Extreme Networks (NASDAQ:EXTR) Announces Quarterly Earnings Results

Extreme Networks (NASDAQ:EXTR) released its quarterly earnings results on Wednesday. The technology company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02, FiscalAI reports. Extreme Networks had a return on equity of 81.83% and a net margin of 0.73%.The business had revenue of $317.93 million for the quarter, compared to the consensus estimate of $312.33 million. During the same quarter last year, the business posted $0.21 earnings per share. The company’s revenue for the quarter was up 13.8% on a year-over-year basis. Extreme Networks updated its Q3 2026 guidance to 0.230-0.250 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 1.5%

Extreme Networks stock traded down $0.23 during midday trading on Wednesday, reaching $14.47. The stock had a trading volume of 596,766 shares, compared to its average volume of 1,421,035. The company has a quick ratio of 0.75, a current ratio of 0.91 and a debt-to-equity ratio of 2.32. The firm has a market cap of $1.94 billion, a price-to-earnings ratio of 206.77, a price-to-earnings-growth ratio of 1.69 and a beta of 1.64. Extreme Networks has a 52-week low of $10.10 and a 52-week high of $22.89. The company has a fifty day moving average of $16.64 and a 200 day moving average of $18.71.

Insider Activity at Extreme Networks

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in EXTR. PharVision Advisers LLC acquired a new position in Extreme Networks during the 3rd quarter valued at approximately $298,000. Sherbrooke Park Advisers LLC purchased a new position in Extreme Networks in the 3rd quarter worth $281,000. Prelude Capital Management LLC acquired a new stake in Extreme Networks during the 3rd quarter worth about $308,000. Larson Financial Group LLC increased its holdings in shares of Extreme Networks by 8,569.1% in the third quarter. Larson Financial Group LLC now owns 10,663 shares of the technology company’s stock valued at $220,000 after purchasing an additional 10,540 shares during the period. Finally, Vident Advisory LLC purchased a new position in shares of Extreme Networks in the second quarter worth about $263,000. 91.05% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. B. Riley reissued a “buy” rating on shares of Extreme Networks in a research report on Thursday, October 30th. Wall Street Zen raised Extreme Networks from a “buy” rating to a “strong-buy” rating in a research report on Sunday. Bank of America assumed coverage on shares of Extreme Networks in a research note on Wednesday, November 19th. They issued a “buy” rating and a $24.00 price target for the company. Needham & Company LLC reaffirmed a “buy” rating and set a $24.00 price target on shares of Extreme Networks in a research report on Monday, November 24th. Finally, Weiss Ratings downgraded Extreme Networks from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, January 16th. Six equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $23.83.

Extreme Networks Company Profile

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.