Extreme Networks Q2 Earnings Call Highlights

1 month ago 29

MarketBeat

Wed, January 28, 2026 astatine 9:09 AM CST 7 min read

Extreme Networks logo

Extreme bushed Q2 guidance with gross of $318 million (up 14% YoY) and non-GAAP EPS of $0.26, and raised full‑year fiscal 2026 gross guidance midpoint to astir $1.262 billion–$1.270 billion, saying nett should turn faster than gross for the year.
Recurring and SaaS momentum accelerated: SaaS ARR roseate to $227 million (up 25% YoY) and absorption said Platform One bookings are “well ahead” of targets, backed by ample competitory wins including 34 deals implicit $1 million.
Margins look a near‑term headwind arsenic respective large, professional‑services‑led deployments (with work margins astir 15%–20%) volition depress Q3 gross borderline contempt a steadfast existent gross borderline of 62%; institution executed a 7% terms summation and targets a long‑term non‑GAAP gross borderline of 64%–66%.
Interested successful Extreme Networks, Inc.? Here are 5 stocks we similar better.

Ciena Stock: Powering the AI Boom - A Network Infrastructure Play

Extreme Networks (NASDAQ:EXTR) reported second-quarter fiscal 2026 results that absorption said marked its seventh consecutive 4th of gross growth, supported by request for its AI-powered networking level and continued competitory displacement wins. Executives besides raised full-year gross guidance astatine the midpoint and said they expect nett to turn faster than gross for the equilibrium of fiscal 2026, though they flagged a near-term gross borderline headwind tied to ample nonrecreational services-led deployments successful the 2nd fractional of the year.

For the 2nd quarter, Extreme reported gross of $318 million, up 14% twelvemonth implicit twelvemonth and supra the precocious extremity of its guidance range. Non-GAAP net per stock were $0.26, besides supra the precocious extremity of guidance and up from $0.21 successful the prior-year quarter, a 24% improvement, according to CFO Kevin Rhodes.

→ Kinder Morgan’s Natural Gas/Dividend Growth Cycle Still successful Play

Arista Networks Advances the Era of AI and Microperimeters

Rhodes said nett maturation outpaced gross maturation by 10 percent points successful the quarter. The institution reported non-GAAP gross borderline of 62%, up 70 ground points sequentially and astatine the precocious extremity of its guidance range. Operating borderline was 16%, up from 13.3% successful the anterior 4th and 14.7% successful the year-ago period. Adjusted EBITDA was $52.4 million, representing a 16.5% margin.

Extreme besides highlighted maturation successful recurring gross and unreality metrics. Subscription and enactment gross was $120 million, up 12% twelvemonth implicit twelvemonth and up 3% sequentially. SaaS yearly recurring gross (ARR) grew 25% twelvemonth implicit twelvemonth to $227 million, which absorption attributed to Platform One subscriptions. Deferred gross metrics accrued arsenic well, with SaaS deferred gross rising to $334 million (up 15% twelvemonth implicit year) and wide deferred recurring gross reaching $628 million (up 9% twelvemonth implicit year).