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

Extreme Networks (NASDAQ:EXTR) issued an update on 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 earnings per share 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.

Extreme Networks Price Performance

Shares of EXTR traded down $0.17 during trading hours on Friday, hitting $24.15. 683,483 shares of the company were exchanged, compared to its average volume of 2,080,410. The company has a market cap of $3.16 billion, a price-to-earnings ratio of 77.91, a P/E/G ratio of 1.61 and a beta of 1.79. Extreme Networks has a fifty-two week low of $13.48 and a fifty-two week high of $33.73. The company has a quick ratio of 0.78, a current ratio of 0.93 and a debt-to-equity ratio of 1.63. The firm’s fifty day moving average is $30.33 and its 200 day moving average is $21.86.

Extreme Networks (NASDAQ:EXTR) last posted its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.32 EPS for the quarter, beating analysts’ consensus estimates of $0.29 by $0.03. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%.The business had revenue of $338.55 million during the quarter, compared to the consensus estimate of $332.49 million. During the same quarter in the previous year, the firm earned $0.25 earnings per share. Extreme Networks’s revenue for the quarter was up 10.3% compared to the same quarter last year. 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. On average, equities analysts anticipate that Extreme Networks will post 0.81 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

EXTR has been the subject of several analyst reports. Rosenblatt Securities dropped their target price on shares of Extreme Networks from $39.00 to $38.00 and set a “buy” rating for the company in a research report on Thursday. Lake Street Capital increased their price target on shares of Extreme Networks from $25.00 to $34.00 and gave the stock a “buy” rating in a research report on Monday, June 15th. Wall Street Zen cut shares of Extreme Networks from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Bank of America boosted their price objective on shares of Extreme Networks from $28.00 to $33.00 and gave the company a “buy” rating in a research report on Monday, June 8th. Finally, Craig Hallum restated a “buy” rating and set a $31.00 target price on shares of Extreme Networks in a research note on Thursday. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Extreme Networks currently has an average rating of “Moderate Buy” and a consensus price target of $32.25.

Insiders Place Their Bets

In other news, CFO Kevin R. Rhodes sold 35,000 shares of the firm’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 sale, the chief financial officer directly owned 151,296 shares in the company, valued at approximately $4,603,937.28. This trade represents a 18.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Edward Meyercord sold 100,000 shares of Extreme Networks stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $26.10, for a total transaction of $2,610,000.00. Following the sale, the chief executive officer directly owned 1,721,902 shares in the company, valued at $44,941,642.20. This trade represents a 5.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 422,182 shares of company stock worth $11,905,205 in the last ninety days. Insiders own 3.60% of the company’s stock.

Extreme Networks News Summary

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

Institutional investors and hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Extreme Networks during the third quarter valued at about $31,000. Quarry LP increased its stake in shares of Extreme Networks by 74.9% in the third quarter. Quarry LP now owns 2,610 shares of the technology company’s stock valued at $54,000 after buying an additional 1,118 shares during the period. Advisors Asset Management Inc. raised its holdings in Extreme Networks by 136.8% in the 4th quarter. Advisors Asset Management Inc. now owns 3,221 shares of the technology company’s stock valued at $54,000 after buying an additional 1,861 shares during the last quarter. Quadrant Capital Group LLC bought a new position in Extreme Networks in the 3rd quarter valued at approximately $91,000. Finally, Wexford Capital LP acquired a new stake in Extreme Networks during the 3rd quarter worth approximately $95,000. Institutional investors and hedge funds 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.