Extreme Networks (NASDAQ:EXTR) Shares Gap Up After Better-Than-Expected Earnings

Extreme Networks, Inc. (NASDAQ:EXTR)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $14.70, but opened at $15.50. Extreme Networks shares last traded at $14.9850, with a volume of 994,595 shares trading hands.

The technology company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.02. The company had revenue of $317.93 million during the quarter, compared to analysts’ expectations of $312.33 million. Extreme Networks had a return on equity of 75.56% and a net margin of 0.75%.The firm’s revenue was up 13.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.21 EPS. Extreme Networks has set its Q3 2026 guidance at 0.230-0.250 EPS and its FY 2026 guidance at 0.980-1.020 EPS.

Extreme Networks News Summary

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

• Positive Sentiment: Q2 results beat consensus: EXTR reported $0.26 EPS vs. $0.24 est. and revenue of $317.9M (up 13.8% YoY), with management citing platform bookings that outpaced plan — a core reason for the upside reaction to the quarter. Business Wire: Q2 Results
• Positive Sentiment: Raised forward guidance: company set FY26 EPS guidance of $0.98–$1.02 (well above consensus) and Q3 EPS guidance above street expectations, supporting a more constructive earnings outlook. Slide Deck / Press Release
• Positive Sentiment: Management projects ~11% revenue growth for fiscal 2026 and is emphasizing its AI-driven Extreme Platform ONE and market-share gains — a longer-term growth narrative that could support re-rating if execution continues. Seeking Alpha: FY26 Growth Projection
• Positive Sentiment: Rosenblatt reaffirmed a Buy rating with a $25 price target, signaling continued analyst conviction at some firms. Benzinga: Rosenblatt
• Neutral Sentiment: Company scheduled investor conferences in Feb–Mar 2026 — gives management additional forums to detail AI strategy, bookings cadence and margin progression (helpful for clarity but not an immediate catalyst). Business Wire: Investor Conferences
• Neutral Sentiment: Coverage and transcripts are available (earnings call and slide deck), which investors can review for product cadence and margin details that will matter to future quarters. Seeking Alpha: Call Transcript
• Negative Sentiment: Needham cut its price target from $24 to $21 (but kept a Buy rating), which may cap near-term upside and contributed to some selling pressure despite the beat. Benzinga: Needham

Analysts Set New Price Targets

Several brokerages have recently issued reports on EXTR. Weiss Ratings cut Extreme Networks from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, January 16th. Needham & Company LLC decreased their price target on Extreme Networks from $24.00 to $21.00 and set a “buy” rating for the company in a report on Thursday. B. Riley restated a “buy” rating on shares of Extreme Networks in a research report on Thursday, October 30th. Oppenheimer raised shares of Extreme Networks from a “market perform” rating to an “outperform” rating and set a $25.00 target price for the company in a report on Thursday, October 30th. Finally, UBS Group reiterated a “neutral” rating and issued a $17.00 target price on shares of Extreme Networks in a research note on Thursday. Six research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $22.67.

Insider Buying and Selling at Extreme Networks

In other news, CEO Edward Meyercord sold 50,000 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $16.54, for a total value of $827,000.00. Following the completion of the sale, the chief executive officer directly owned 1,871,418 shares in the company, valued at $30,953,253.72. This represents a 2.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. CWM LLC grew its holdings in shares of Extreme Networks by 44.8% in the third quarter. CWM LLC now owns 2,095 shares of the technology company’s stock valued at $43,000 after purchasing an additional 648 shares during the period. Envestnet Asset Management Inc. boosted its holdings in Extreme Networks by 3.1% in the 3rd quarter. Envestnet Asset Management Inc. now owns 22,783 shares of the technology company’s stock valued at $470,000 after purchasing an additional 683 shares during the last quarter. Arizona State Retirement System boosted its holdings in Extreme Networks by 1.8% in the 3rd quarter. Arizona State Retirement System now owns 39,405 shares of the technology company’s stock valued at $814,000 after purchasing an additional 685 shares during the last quarter. Police & Firemen s Retirement System of New Jersey grew its stake in shares of Extreme Networks by 3.3% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 29,356 shares of the technology company’s stock valued at $527,000 after buying an additional 934 shares during the period. Finally, Farther Finance Advisors LLC increased its holdings in shares of Extreme Networks by 85.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,201 shares of the technology company’s stock worth $45,000 after buying an additional 1,014 shares during the last quarter. Hedge funds and other institutional investors own 91.05% of the company’s stock.

Extreme Networks Trading Down 4.3%

The stock has a market cap of $1.92 billion, a PE ratio of 205.32, a price-to-earnings-growth ratio of 1.67 and a beta of 1.64. The company’s 50-day moving average price is $16.55 and its 200 day moving average price is $18.65. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.75 and a current ratio of 0.95.

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.