Extreme Networks (NASDAQ:EXTR) Shares Gap Up Following Strong Earnings

Shares of Extreme Networks, Inc. (NASDAQ:EXTR) gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 changing hands.

The technology company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.02. Extreme Networks had a net margin of 0.73% and a return on equity of 81.83%. The company had revenue of $317.93 million for the quarter, compared to analysts’ expectations of $312.33 million. During the same period last year, the firm posted $0.21 earnings per share. The business’s quarterly revenue was up 13.8% compared to the same quarter last year. Extreme Networks has set its Q3 2026 guidance at 0.230-0.250 EPS.

Extreme Networks News Summary

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

• Positive Sentiment: Q2 results beat expectations — EPS $0.26 vs. $0.24 consensus and revenue $317.9M vs. ~$312M consensus; revenue rose ~13.8% year-over-year, signaling sustained growth momentum. Extreme Networks (EXTR) Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Company raised Q3 FY2026 EPS guidance to $0.230–$0.250 vs. street ~$0.19 and gave revenue guidance roughly in line/slightly above consensus — a sign management expects continued margin improvement and sales stability. Extreme Networks Gains on Rising 2Q Revenue
• Positive Sentiment: Enterprise traction: management said Platform ONE bookings were ~2x plan and highlighted seven consecutive quarters of sequential revenue growth — indicates share gains vs. larger incumbents. Extreme Networks Reports Second Quarter Fiscal Year 2026 Financial Results
• Neutral Sentiment: Full earnings call transcript and commentary are available for details on product mix, backlog and margin drivers — investors should review for guidance color and customer commentary. Extreme Networks EXTR Q2 2026 Earnings Transcript
• Neutral Sentiment: Multiple news outlets summarized the beat-and-guide story (Seeking Alpha, Stamford Advocate); these are useful for quick reads but largely repackage the release. Extreme Networks rises after Q2 revenue climbs 14%
• Negative Sentiment: Despite the beats, shares moved lower today — probable near-term reasons: valuation is rich (P/E >200), the stock remains below its 50/200-day moving averages (technical resistance), and trading volume was below average, suggesting profit-taking or rotation. (Background market/technical data reflected in recent quotes.)

Analyst Ratings Changes

Several equities research analysts have issued reports on EXTR shares. Wall Street Zen upgraded Extreme Networks from a “buy” rating to a “strong-buy” rating in a report on Sunday. Bank of America assumed coverage on Extreme Networks in a research report on Wednesday, November 19th. They issued a “buy” rating and a $24.00 price objective for the company. Needham & Company LLC reissued a “buy” rating and set a $24.00 target price on shares of Extreme Networks in a research note on Monday, November 24th. B. Riley restated a “buy” rating on shares of Extreme Networks in a report on Thursday, October 30th. Finally, Oppenheimer raised shares of Extreme Networks from a “market perform” rating to an “outperform” rating and set a $25.00 price target on the stock in a research note on Thursday, October 30th. Six research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Extreme Networks currently has an average rating of “Moderate Buy” and an average price target of $23.83.

Insider Buying and Selling

In other Extreme Networks 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 transaction of $827,000.00. Following the completion of the transaction, the chief executive officer owned 1,871,418 shares of the company’s stock, valued at $30,953,253.72. This represents a 2.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 3.60% of the company’s stock.

Institutional Trading of Extreme Networks

A number of hedge funds and other institutional investors have recently made changes to their positions in EXTR. CWM LLC increased its holdings in 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. grew its position in shares of 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 buying an additional 683 shares during the last quarter. Arizona State Retirement System increased its stake in shares of Extreme Networks by 1.8% in the third quarter. Arizona State Retirement System now owns 39,405 shares of the technology company’s stock valued at $814,000 after buying an additional 685 shares during the period. Police & Firemen s Retirement System of New Jersey increased its stake in shares of Extreme Networks by 3.3% in the second 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 raised its position in shares of Extreme Networks by 85.4% during the third quarter. Farther Finance Advisors LLC now owns 2,201 shares of the technology company’s stock worth $45,000 after acquiring an additional 1,014 shares during the last quarter. 91.05% of the stock is currently owned by institutional investors and hedge funds.

Extreme Networks Stock Performance

The stock has a 50 day moving average of $16.64 and a 200 day moving average of $18.71. The company has a market capitalization of $2.06 billion, a price-to-earnings ratio of 221.40, a price-to-earnings-growth ratio of 1.69 and a beta of 1.64. The company has a quick ratio of 0.75, a current ratio of 0.91 and a debt-to-equity ratio of 2.32.

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.