two Earnings Recaps
Q3 2026
May 1, 2026
Extreme Networks delivered results well ahead of expectations, sending shares up 29.6% post-earnings. Upside was driven by a revenue beat, continued double-digit top-line growth, accelerating SaaS ARR, and margin expansion above guidance.
Key takeaways
- Q3 revenue was $317 million, up 11% year-over-year, and above the high end of guidance.
- SaaS annual recurring revenue grew 29% year-over-year to $236 million, highlighting robust cloud momentum.
- Gross margins improved to 62.3%, exceeding guidance, as disciplined pricing and supply chain initiatives took hold.
- Memory supply constraints were resolved, securing forward-looking fulfillment through fiscal 2027 and boosting margin visibility.
- Shareholder returns remained a focus with $50 million in buybacks; customer wins included $1M+ deals with 44 clients and new marquee logos.
Q2 2026
Jan 28, 2026
Extreme Networks continues its strong momentum with a seventh consecutive quarter of revenue growth, reporting $318 million in revenue for Q2 FY2026, a 14% year-over-year increase driven by robust demand for its AI-powered solutions.
Key takeaways
- Revenue growth outpaced expectations, with significant competitive wins across multiple sectors and a strong demand for AI-enhanced products.
- Cloud subscription ARR increased by 25% year-over-year, reflecting accelerated adoption of the Extreme Platform One.
- The company achieved record subscription bookings and closed 34 deals exceeding $1 million, including strategic partnerships with major enterprises such as Baylor University and Kroger.
- New partner program "Extreme Partner First" aims to enhance profitability and simplify operations for partners, driving a tripling of billings year-over-year within managed service providers (MSPs).
- Continued innovation in network solutions and strategic customer selections positions Extreme Networks for long-term growth and an expanded market reach.