Digi International (NASDAQ:DGII) Posts Earnings Results, Beats Expectations By $0.02 EPS

Digi International (NASDAQ:DGII) released its quarterly earnings results on Wednesday. The technology company reported $0.78 earnings per share for the quarter, topping analysts’ consensus estimates of $0.76 by $0.02, reports. The business had revenue of $143.32 million during the quarter, compared to the consensus estimate of $140.27 million. Digi International had a net margin of 10.03% and a return on equity of 13.21%. The business’s quarterly revenue was up 25.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.26 earnings per share. Digi International updated its Q1 2027 guidance to 0.710-0.750 EPS.

Here are the key takeaways from Digi International’s conference call:

• Digi reported record quarterly and full-year revenue, ARR, and adjusted EBITDA for fiscal 2026. Full-year revenue grew 24%, and management said operating leverage improved as operating expenses declined as a share of revenue.
• For fiscal 2027, Digi expects ARR growth of at least 15%, revenue growth of 10%–15%, and profit growth of 12.5%–17.5%; guidance includes the pending Disruptive Technologies acquisition. Management expects to reach its $200 million ARR goal in 2027, a year ahead of plan.
• Digi plans to acquire Disruptive Technologies for $130 million in cash, subject to regulatory approval, and expects the deal to add $9 million in adjusted EBITDA in fiscal 2028. The company intends to gradually shift the sensor business toward subscriptions, while noting that fiscal 2027 will be a transition year.
• Management cited supply-chain allocation and cost pressures, especially for memory and other components, as ongoing challenges; it is planning further ahead and selectively considering price increases. It expects gross margins to remain in the low-to-mid-60% range and said first-quarter adjusted EBITDA may decline sequentially partly due to margin mix and seasonality.
• Management said the opportunity pipeline is at its highest level to date and up double digits, with deal progression improving year over year. It also described broad-based Opengear growth, though a potential hyperscaler win remains uncertain.

Digi International Stock Performance

Shares of NASDAQ DGII traded down $3.40 during midday trading on Friday, hitting $55.04. The company’s stock had a trading volume of 270,084 shares, compared to its average volume of 359,029. Digi International has a 1-year low of $36.89 and a 1-year high of $86.84. The firm’s fifty day moving average price is $72.31 and its 200-day moving average price is $63.96. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.78 and a current ratio of 1.13. The firm has a market cap of $2.09 billion, a P/E ratio of 39.86 and a beta of 1.00.

Key Digi International News

Here’s some of the latest news about DGII:

• Positive Sentiment: Fiscal Q4 revenue rose 25% to $143.3 million, beating estimates of $140.3 million, while adjusted EPS of $0.78 topped the $0.76 consensus. Digi’s fiscal 2027 revenue outlook of $588.7 million–$615.5 million was also above the $579 million consensus. Digi International fiscal 2026 results
• Neutral Sentiment: Piper Sandler cut its price target from $76 to $67 and maintained a neutral rating. The reduced target reflects a more cautious view, though it remained above the share price cited in the report. Piper Sandler rating report
• Negative Sentiment: Despite the earnings beat, reports said shares dropped after the release as investors focused on near-term margin pressure and expectations for slower growth. Q1 fiscal 2027 revenue guidance of $140 million–$144 million was close to the $140.5 million consensus, offering limited near-term upside; commentary also flagged acquisition-related risk. Digi shares after fiscal Q4 report Analysis of Digi’s growth, margins and acquisition risk

Analyst Upgrades and Downgrades

DGII has been the topic of a number of research analyst reports. Zacks Research downgraded shares of Digi International from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Roth Capital set a $90.00 target price on shares of Digi International and gave the company a “buy” rating in a research note on Thursday, August 6th. Piper Sandler reduced their price target on shares of Digi International from $76.00 to $67.00 and set a “neutral” rating on the stock in a research report on Thursday. Weiss Ratings cut shares of Digi International from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday. Finally, B. Riley Financial lifted their price target on Digi International from $78.00 to $86.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Digi International has an average rating of “Moderate Buy” and a consensus price target of $80.60.

Digi International Company Profile

Digi International provides products and services for connecting, managing and securing devices used in the Internet of Things (IoT). Its offerings include cellular routers and gateways, embedded modules, console servers and other networking equipment, along with software and services for device management and remote monitoring. The company serves businesses and organizations across industries such as transportation, energy, healthcare, industrial automation and retail. Its solutions support deployments ranging from connected equipment and infrastructure to remote access and network management, with customers in markets around the world.