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 (EPS) guidance of 0.270-0.290 for the period, compared to the consensus 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.

Analysts Set New Price Targets

Several research analysts have commented on EXTR shares. UBS Group set a $28.00 price objective on shares of Extreme Networks in a research report on Thursday, April 30th. B. Riley Financial reiterated a “buy” rating on shares of Extreme Networks in a research report on Thursday, April 30th. 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 research report on Monday, June 15th. Needham & Company LLC upped their target price on shares of Extreme Networks from $26.00 to $38.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. Finally, Rosenblatt Securities raised their price target on shares of Extreme Networks from $29.00 to $39.00 and gave the company a “buy” rating in a research report on Thursday, June 11th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $32.83.

Extreme Networks Trading Down 17.7%

NASDAQ EXTR traded down $5.74 during trading on Wednesday, hitting $26.60. The company had a trading volume of 3,211,857 shares, compared to its average volume of 2,075,353. Extreme Networks has a one year low of $13.48 and a one year high of $33.73. The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. The company’s fifty day moving average is $30.37 and its 200-day moving average is $21.73. The company has a market cap of $3.48 billion, a price-to-earnings ratio of 221.62, a price-to-earnings-growth ratio of 1.84 and a beta of 1.79.

Extreme Networks (NASDAQ:EXTR) last announced its quarterly 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. The company had revenue of $338.55 million for the quarter, compared to analysts’ expectations of $332.49 million. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. Extreme Networks’s revenue was up 10.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.25 EPS. 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, sell-side analysts predict that Extreme Networks will post 0.53 earnings per share for the current year.

Insider Activity at Extreme Networks

In other Extreme Networks news, CEO Edward Meyercord sold 50,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $29.79, for a total transaction of $1,489,500.00. Following the transaction, the chief executive officer owned 1,596,475 shares of the company’s stock, valued at approximately $47,558,990.25. This trade represents a 3.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $1,065,050.00. Following the completion of the sale, the chief financial officer owned 151,296 shares of the company’s stock, valued at approximately $4,603,937.28. This trade represents a 18.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 422,182 shares of company stock worth $11,905,205. Corporate insiders own 3.60% of the company’s stock.

Key Extreme Networks News

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

• Positive Sentiment: Extreme Networks reported fiscal Q4 earnings of $0.32 per share, exceeding the $0.29 consensus estimate and improving from $0.25 a year earlier. Revenue reached $338.55 million, above expectations of $332.49 million and up 10.3% year over year. Extreme Networks Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Fiscal 2027 EPS guidance of $1.28 to $1.33 is above the $1.21 analyst consensus. First-quarter EPS guidance of $0.27 to $0.29 also exceeds the $0.26 consensus, while projected first-quarter revenue of $334 million to $339 million is ahead of expectations. Extreme Networks Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Neutral Sentiment: Analysts maintain a generally favorable view, with six Buy ratings and two Hold ratings and an average price target of $32.83. However, the stock’s high earnings multiple leaves limited room for disappointment.
• Negative Sentiment: CEO Edward Meyercord sold 50,000 shares worth approximately $1.49 million under a pre-arranged Rule 10b5-1 plan, reducing his direct holdings by 3.04%. Although scheduled sales do not necessarily signal deteriorating business conditions, the transaction can add short-term selling pressure. Extreme Networks CEO Sells 50,000 Shares
• Negative Sentiment: Investors may be taking profits after a substantial rally: Extreme Networks trades well above its 200-day moving average and at a very elevated reported P/E ratio. That positioning can cause a “sell-the-news” reaction even after an earnings beat, helping explain the stock’s decline.

Institutional Trading of Extreme Networks

Several hedge funds have recently made changes to their positions in the company. Alyeska Investment Group L.P. raised its stake in shares of Extreme Networks by 301.9% in the 4th quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company’s stock valued at $49,479,000 after acquiring an additional 2,232,373 shares during the period. Jain Global LLC purchased a new position in shares of Extreme Networks during the fourth quarter worth $17,361,000. Millennium Management LLC raised its holdings in shares of Extreme Networks by 163.0% in the 1st quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company’s stock valued at $16,675,000 after buying an additional 781,103 shares during the period. Southernsun Asset Management LLC lifted its stake in Extreme Networks by 46.9% during the 4th quarter. Southernsun Asset Management LLC now owns 1,970,886 shares of the technology company’s stock worth $32,815,000 after acquiring an additional 629,486 shares in the last quarter. Finally, Cubist Systematic Strategies LLC purchased a new position in shares of Extreme Networks in the second quarter valued at approximately $11,265,000. Hedge funds and other 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.