Extreme Networks has announced financial results for the first quarter of fiscal year 2026, which ended September 30, 2025. The networking company reported a 15% year-over-year revenue increase, marking its sixth consecutive quarter of sequential growth.
Total revenue reached $310.2 million, a 15.2% increase compared to the same quarter last year. Software-as-a-Service (SaaS) revenue also showed strong growth, with annual recurring revenue (SaaS ARR) increasing 24.2% year-over-year to $216.2 million.
“The strength of our first quarter results was driven by improved execution, increasing customer demand and expanding interest in our AI-powered networking platform and our high-performance solutions,” said Ed Meyercord, President and CEO of Extreme. “This marked six consecutive quarters of revenue growth and three straight quarters of double-digit year-over-year gains, which is a positive sign that we are gaining share. ARR is up 24% year-over-year, as momentum grows with our subscription model. Continuing share gains in the Americas along with increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by significant wins this quarter.”
Meyercord said, “Bookings for Extreme Platform ONE were solid in the quarter. Since its general availability in mid-July, customers have responded positively to the platform’s simplicity and advanced AI capabilities, which combine conversational, multimodal, and agentic technologies to automate a wide range of networking tasks. Our recently released service agent is designed to streamline network management, automate routine workflows, and enable IT teams to deliver faster, smarter support, reducing manual effort by up to 95%. These innovations position us to drive growth, expand market share, and capitalize on opportunities arising from shifts among competitors.”
Financial performance exceeded expectations, with Non-GAAP diluted earnings per share of $0.22, compared to $0.17 last year.
Kevin Rhodes, Executive Vice President and CFO, stated about strong first-quarter results. “First quarter results were strong, driven by continuous growth in revenue, higher margin ARR growth, and prudent expense management leading to earnings above our expectations. Our outlook for a re-acceleration of overall revenue growth to 10% at the midpoint of our outlook on a full-year basis continues to improve, and we expect that to translate to even higher earnings and cash flow than our initial forecast. I’m also pleased with our overall execution as a company.”
Operating Margins and Liquidity
- Non-GAAP gross margin was 61.3%, compared to 63.7% last year.
- Non-GAAP operating margin was 13.3%, up from 12.4% last year.
- Extreme bought back $12.0 million worth of its own shares in the quarter.
