Ubiquiti Inc. UI reported strong third-quarter fiscal 2026 results, with both bottom and top lines surpassing the Zacks Consensus Estimate.
The New York-based networking products and solutions provider reported an 18.7% year-over-year increase in revenues, driven mainly by strong demand for its UniFi networking products and growth in its Enterprise Technology segment, with higher sales across all regions.
Net Income
Net income, on a GAAP basis, in the quarter was $233.9 million or $3.86 per share compared with $180.4 million or $2.98 per share in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the bottom line.
Non-GAAP net income in the quarter was $235.1 million or $3.88 per share compared with $181.8 million or $3 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by 70 cents.
Ubiquiti Inc. Price, Consensus and EPS Surprise
Ubiquiti Inc. price-consensus-eps-surprise-chart | Ubiquiti Inc. Quote
Revenues
Net sales in the quarter increased to $788.2 million from $664.2 million in the prior-year quarter, driven by higher revenues from the Enterprise Technology segment, contributing 91.1% of total sales. The top line beat the Zacks Consensus Estimate of $785 million.
Enterprise Technology generated $717.9 million in revenues, up from $585.7 million in the prior-year quarter, led by an increase in revenues across all regions.
Service Provider Technology registered $70.3 million in revenues, down from $78.4 million in the year-ago quarter due to a decrease in revenues across all regions except North America and South America.
Region-wise, revenues from North America were $410.2 million compared with $322.7 million in the year-ago quarter. Net sales from Europe, the Middle East and Africa aggregated $303.8 million, up from $282.1 million. Asia Pacific revenues increased to $43.2 million from $37.5 million in the year-earlier quarter. Revenues from South America were $31.1 million, up from $21.8 million a year ago.
Other Details
During the March quarter, gross profit was $370.7 million compared with $295.9 million in the year-ago quarter, with respective margins of 47% and 44.5% due to favorable product mix, lower shipping costs, and reduced charges for excess and obsolete inventory. Higher tariffs partially reversed this positive trend.
The operating expenses increased to $79.9 million from the prior-year figure of $69 million due to higher employee-related costs, credit card processing fees from stronger webstore sales, professional fees, software and marketing expenses, partly offset by lower depreciation and facility costs. Operating income was $290.8 million, up from $226.9 million in the prior year.
Cash Flow & Liquidity
During the first nine months of fiscal 2026, Ubiquiti generated $630.1 million of cash in operating activities, up from $509.7 million in the prior-year period. As of March 31, 2026, the company had $368.7 million in cash and cash equivalents, with $56 million of other long-term operating lease liabilities.
Zacks Rank
Ubiquiti currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. KEYS is scheduled to release second-quarter fiscal 2026 earnings on May 19. The Zacks Consensus Estimate for earnings is pegged at $2.33 per share, suggesting growth of 37.06% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 17.45%. The company delivered an average earnings surprise of 4.58% in the last four reported quarters.
Workday, Inc. WDAY is set to release first-quarter fiscal 2027 earnings on May 21. The Zacks Consensus Estimate for earnings is pegged at $2.49 per share, implying growth of 11.7% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 20.16%. The company delivered an average earnings surprise of 8.53% in the last four reported quarters.
Analog Devices, Inc. ADI is set to release second-quarter fiscal 2026 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $2.88 per share, implying growth of 55.7% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 21.89%. The company delivered an average earnings surprise of 6.11% in the last four reported quarters.
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