Extreme Networks (NASDAQ:EXTR) Releases FY 2027 Earnings Guidance

Extreme Networks (NASDAQ:EXTR) updated its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 1.280-1.330 for the period, compared to the consensus estimate of 1.210. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.4 billion. Extreme Networks also updated its Q1 2027 guidance to 0.270-0.290 EPS.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on EXTR. Bank of America raised their target price on Extreme Networks from $28.00 to $33.00 and gave the stock a “buy” rating in a report on Monday, June 8th. Lake Street Capital increased their price target on shares of Extreme Networks from $25.00 to $34.00 and gave the company a “buy” rating in a research report on Monday, June 15th. Rosenblatt Securities cut their price target on shares of Extreme Networks from $39.00 to $38.00 and set a “buy” rating on the stock in a research report on Thursday. B. Riley Financial lifted their price objective on shares of Extreme Networks from $28.00 to $34.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Craig Hallum restated a “buy” rating and set a $31.00 price objective on shares of Extreme Networks in a report on Thursday. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $32.25.

Extreme Networks Stock Down 6.5%

EXTR traded down $1.70 during trading on Thursday, hitting $24.49. The company had a trading volume of 1,631,813 shares, compared to its average volume of 2,080,708. The company has a market capitalization of $3.20 billion, a PE ratio of 204.71, a PEG ratio of 1.99 and a beta of 1.79. The company has a quick ratio of 0.78, a current ratio of 0.91 and a debt-to-equity ratio of 1.89. Extreme Networks has a one year low of $13.48 and a one year high of $33.73. The firm’s 50-day moving average price is $30.36 and its 200 day moving average price is $21.80.

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, topping analysts’ consensus estimates of $0.29 by $0.03. Extreme Networks had a return on equity of 81.88% and a net margin of 1.30%.The firm had revenue of $338.55 million during the quarter, compared to analysts’ expectations of $332.49 million. During the same quarter in the prior year, the company earned $0.25 EPS. The company’s revenue was up 10.3% on a year-over-year basis. 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. As a group, equities analysts expect that Extreme Networks will post 0.53 earnings per share for the current year.

Insider Transactions at Extreme Networks

In related news, insider Katayoun Motiey sold 30,000 shares of Extreme Networks stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $31.03, for a total value of $930,900.00. Following the sale, the insider owned 120,834 shares of the company’s stock, valued at approximately $3,749,479.02. This trade represents a 19.89% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Kevin R. Rhodes sold 35,000 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $30.43, for a total value of $1,065,050.00. Following the completion of the sale, the chief financial officer owned 151,296 shares in the company, valued at $4,603,937.28. The trade was a 18.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 422,182 shares of company stock valued at $11,905,205 over the last three months. 3.60% of the stock is currently owned by corporate insiders.

Extreme Networks News Summary

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

• Positive Sentiment: Quarterly results exceeded expectations. Extreme Networks reported fiscal fourth-quarter adjusted EPS of $0.32, above the $0.29 consensus estimate, while revenue of $338.55 million surpassed forecasts of $332.49 million and increased 10.3% year over year. Extreme Networks Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Fiscal 2027 guidance came in above consensus. Management forecast first-quarter EPS of $0.27-$0.29 and revenue of $334 million-$339 million, ahead of consensus estimates of $0.26 and $332.3 million, respectively. Full-year EPS guidance of $1.28-$1.33 also exceeded the $1.21 analyst consensus. Extreme Networks Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: B. Riley became more bullish. The firm raised its price target from $28 to $34 and maintained a “buy” rating, implying substantial potential upside based on the referenced share price. Benzinga
• Neutral Sentiment: Analyst sentiment remains positive but targets are being recalibrated. Rosenblatt reduced its target from $39 to $38, and Needham lowered its target from $38 to $35; both firms retained “buy” ratings. These revisions may temper enthusiasm despite the continued bullish recommendations. Extreme Networks Price Target Lowered at Needham
• Negative Sentiment: CEO insider selling may weigh on sentiment. Chief Executive Edward Meyercord sold 50,000 shares for approximately $1.49 million, reducing his direct stake by 3.04%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, which lessens its significance as a discretionary bearish signal. Extreme Networks CEO Sells Shares

Institutional Trading of Extreme Networks

A number of hedge funds and other institutional investors have recently made changes to their positions in EXTR. Alyeska Investment Group L.P. raised its holdings in Extreme Networks by 301.9% during the fourth quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company’s stock worth $49,479,000 after acquiring an additional 2,232,373 shares in the last quarter. Jain Global LLC acquired a new position in Extreme Networks during the fourth quarter valued at approximately $17,361,000. Millennium Management LLC grew its stake in Extreme Networks by 163.0% in the first quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company’s stock valued at $16,675,000 after purchasing an additional 781,103 shares in the last quarter. Southernsun Asset Management LLC grew its stake in Extreme Networks by 46.9% in the fourth quarter. Southernsun Asset Management LLC now owns 1,970,886 shares of the technology company’s stock valued at $32,815,000 after purchasing an additional 629,486 shares in the last quarter. Finally, Cubist Systematic Strategies LLC acquired a new position in shares of Extreme Networks during the 2nd quarter worth approximately $11,265,000. 91.05% of the stock is currently owned by institutional investors and hedge funds.

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.