Extreme Networks (NASDAQ:EXTR) Updates Q1 2027 Earnings Guidance

Extreme Networks (NASDAQ:EXTR) updated its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.270-0.290 for the period, compared to the consensus earnings per share estimate of 0.260. The company issued revenue guidance of $334.0 million-$339.0 million, compared to the consensus revenue estimate of $332.3 million. Extreme Networks also updated its FY 2027 guidance to 1.280-1.330 EPS.

Extreme Networks Stock Performance

Shares of Extreme Networks stock traded down $0.17 during mid-day trading on Friday, hitting $24.15. 683,483 shares of the stock were exchanged, compared to its average volume of 2,080,410. Extreme Networks has a 12 month low of $13.48 and a 12 month high of $33.73. The company has a 50-day simple moving average of $30.33 and a 200 day simple moving average of $21.86. The company has a market capitalization of $3.16 billion, a P/E ratio of 77.91, a P/E/G ratio of 1.61 and a beta of 1.79. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.78 and a current ratio of 0.93.

Extreme Networks (NASDAQ:EXTR) last released its earnings results on Wednesday, August 5th. The technology company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.03. The company had revenue of $338.55 million during the quarter, compared to analyst estimates of $332.49 million. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%.Extreme Networks’s quarterly revenue was up 10.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.25 earnings per share. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. Sell-side analysts anticipate that Extreme Networks will post 0.81 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on EXTR shares. Oppenheimer reissued an “outperform” rating on shares of Extreme Networks in a research report on Thursday. B. Riley Financial lifted their target price on Extreme Networks from $28.00 to $34.00 and gave the stock a “buy” rating in a research note on Thursday. Wall Street Zen downgraded shares of Extreme Networks from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Weiss Ratings upgraded shares of Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, July 6th. Finally, Lake Street Capital raised their price objective on shares of Extreme Networks from $25.00 to $34.00 and gave the stock a “buy” rating in a report on Monday, June 15th. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Extreme Networks has an average rating of “Moderate Buy” and an average price target of $32.25.

Insider Transactions at Extreme Networks

In other news, Director Kathleen M. Holmgren sold 19,521 shares of the company’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $24.78, for a total transaction of $483,730.38. Following the transaction, the director owned 219,308 shares of the company’s stock, valued at $5,434,452.24. This represents a 8.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Katayoun Motiey sold 30,000 shares of the company’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $31.03, for a total value of $930,900.00. Following the transaction, the insider directly owned 120,834 shares in the company, valued at $3,749,479.02. This represents a 19.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 422,182 shares of company stock valued at $11,905,205 in the last three months. 3.60% of the stock is currently owned by company insiders.

Key Extreme Networks News

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

• Positive Sentiment: Extreme Networks reported fiscal fourth-quarter adjusted earnings of $0.32 per share, exceeding the $0.29 consensus estimate. Revenue rose 10.3% year over year to $338.55 million, also ahead of expectations, and management issued fiscal 2027 earnings guidance of $1.28 to $1.33 per share. Extreme Networks Fiscal Q4 Earnings Snapshot
• Positive Sentiment: B. Riley raised its Extreme Networks price target to $34 from $28 and maintained a “buy” rating, implying substantial upside from recent levels. Rosenblatt also retained a “buy” rating with a $38 target, despite trimming its previous target modestly. Extreme Networks Price Target Raised at B. Riley Financial
• Neutral Sentiment: The company announced participation in investor conferences scheduled for August and September. These events could provide additional visibility into demand trends, its networking portfolio and fiscal 2027 outlook, but they do not represent a material financial catalyst on their own. Extreme Networks Announces Investor Conferences
• Negative Sentiment: Shares faced pressure following reports of insider selling, which can raise concerns about management’s near-term confidence or increase the available stock supply. Extreme Networks Shares Gap Down on Insider Selling
• Negative Sentiment: Needham lowered its price target to $35 from $38, while Rosenblatt reduced its target to $38 from $39; both analysts nevertheless maintained “buy” ratings. A Seeking Alpha analysis argues that Extreme Networks remains overvalued after its pullback, with the stock trading at a high earnings multiple despite a relatively thin net margin. Extreme Networks Price Target Lowered at Needham Extreme Networks Q4 Analysis

Hedge Funds Weigh In On Extreme Networks

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Envestnet Asset Management Inc. raised its position in Extreme Networks by 3.1% during the third quarter. Envestnet Asset Management Inc. now owns 22,783 shares of the technology company’s stock worth $470,000 after acquiring an additional 683 shares during the period. Quarry LP lifted its holdings in Extreme Networks by 74.9% during the third quarter. Quarry LP now owns 2,610 shares of the technology company’s stock valued at $54,000 after purchasing an additional 1,118 shares in the last quarter. Amundi grew its position in shares of Extreme Networks by 3.3% in the third quarter. Amundi now owns 41,571 shares of the technology company’s stock valued at $838,000 after purchasing an additional 1,311 shares during the period. SkyView Investment Advisors LLC grew its position in shares of Extreme Networks by 3.0% in the second quarter. SkyView Investment Advisors LLC now owns 47,695 shares of the technology company’s stock valued at $850,000 after purchasing an additional 1,401 shares during the period. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in shares of Extreme Networks during the third quarter worth about $31,000. Institutional investors own 91.05% of the company’s stock.

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.