Extreme Networks stock surges 8.5% on earnings beat, strong outlook

Published 30/04/2025, 13:58
Extreme Networks stock surges 8.5% on earnings beat, strong outlook

Investing.com -- Extreme Networks , Inc. (NASDAQ:EXTR) shares jumped 8.5% after the networking equipment maker reported better-than-expected fiscal third-quarter results and provided an upbeat outlook.

The company posted adjusted earnings per share of $0.21, surpassing analyst estimates of $0.18. Revenue came in at $285 million, exceeding the consensus forecast of $279.16 million and marking a 34.8% increase YoY.

Extreme Networks reported its fourth consecutive quarter of sequential revenue growth, driven by strong execution and continued market recovery in enterprise networking. The company’s SaaS annual recurring revenue (ARR) grew 13.4% YoY to $184 million.

"Our continued growth reflects our elevated team performance as it pertains to generating opportunities and improving win rates, particularly among new logos we won from larger competitors," said Ed Meyercord, President and CEO.

For the fiscal fourth quarter, Extreme Networks expects adjusted EPS of $0.21-$0.25 on revenue of $295-305 million. The midpoint of this guidance range is above analyst expectations of $0.22 EPS on $299.4 million in revenue.

The company cited accelerated growth in its sales funnel and higher conversion rates as reasons for its confident outlook. Extreme Networks also highlighted strong customer interest in its new AI-driven networking platform, Platform ONE, with nearly 100 pre-orders received.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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