We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ubiquiti Q1 Earnings Surpass Estimates, Top Line Surges Y/Y
Read MoreHide Full Article
Key Takeaways
Ubiquiti's Q1 revenue rose to $733.8M, beating estimates and up from $550.3M a year earlier.
Enterprise Technology sales climbed to $657.1M, driven by strong regional demand.
GAAP net income jumped to $207.9M, or $3.43 per share, despite higher operating expenses.
Ubiquiti, Inc. (UI - Free Report) reported strong first-quarter fiscal 2026 results, with both bottom and top lines surpassing the respective Zacks Consensus Estimate. The New York-based networking products and solutions provider reported revenue growth year over year, owing to healthy traction in the Enterprise Technology segment. Healthy demand in North America, Europe, the Middle East and Africa regions is a major tailwind.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $207.9 million or $3.43 per share compared with $128 million or $2.12 in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the quarter was $209.3 million or $3.46 per share compared with $129.3 million or $2.14 in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by 98 cents.
Net sales in the quarter increased to $733.8 million from $550.3 million in the prior-year quarter. The healthy demand in the Enterprise Technology segment supported the top line. The metric beat the consensus estimate by $51 million.
Enterprise Technology generated $657.1 million in revenues, up from $470.2 million in the prior-year quarter. The top line surpassed our estimate of $582.4 million. Strong demand trends in all regions drove net sales in this segment.
Service Provider Technology registered $76.6 million in revenues, down from $80.2 million in the year-ago quarter. The decline in revenues is primarily attributed to weakness in the South America, Asia Pacific and North America regions. Net sales missed our revenue estimate of $80.4 million.
Region-wise, revenues from North America were $382.8 million compared with $271.2 million in the year-ago quarter. Net sales from EMEA (Europe, the Middle East and Africa) aggregated $263.1 million, up from $204.9 million. Asia Pacific revenues increased to $53.1 million from $40.9 million in the year-earlier quarter. Revenues from South America were $34.7 million, up from $33.3 million a year ago.
Other Details for UI
During the September quarter, gross profit was $337.4 million compared with $231.6 million in the year-ago quarter, with respective margins of 46% and 42.1%. Favorable product mix, lower shipping costs, indirect operating expenses, and excess and obsolete inventory charges. Higher tariffs partially reversed this positive trend.
The research and development expenses increased to $48.5 million from $38 million due to higher employee-related expenses, higher prototype-related expenses and software costs. Operating income was $261.7 million, up from $169.2 million in the prior year.
UI’s Cash Flow & Liquidity
In the first quarter of fiscal 2026, Ubiquiti generated $198.5 million of cash in operating activities compared with $233.7 million in the prior-year quarter. As of Sept. 30, 2025, the company had $177.2 million in cash and cash equivalents, with $29 million of other long-term liabilities.
UI’s Zacks Rank & Other Stocks to Consider
Ubiquiti currently carries a Zacks Rank #3 (Hold).
Corning’s competitive strength lies in its focus on innovation. Corning offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth. In addition, broadband and 5G create near-term momentum.
InterDigital, Inc. (IDCC - Free Report) currently carries a Zacks Rank #2. The company delivered an earnings surprise of 36.26% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses
Celestica, Inc. (CLS - Free Report) currently sports a Zacks Rank 1. The company delivered an earnings surprise of 7.48% in the trailing four quarters.
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. AI investments are driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, and servers and storage-related products.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ubiquiti Q1 Earnings Surpass Estimates, Top Line Surges Y/Y
Key Takeaways
Ubiquiti, Inc. (UI - Free Report) reported strong first-quarter fiscal 2026 results, with both bottom and top lines surpassing the respective Zacks Consensus Estimate. The New York-based networking products and solutions provider reported revenue growth year over year, owing to healthy traction in the Enterprise Technology segment. Healthy demand in North America, Europe, the Middle East and Africa regions is a major tailwind.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $207.9 million or $3.43 per share compared with $128 million or $2.12 in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the quarter was $209.3 million or $3.46 per share compared with $129.3 million or $2.14 in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by 98 cents.
Ubiquiti Inc. Price, Consensus and EPS Surprise
Ubiquiti Inc. price-consensus-eps-surprise-chart | Ubiquiti Inc. Quote
UI’s Revenues
Net sales in the quarter increased to $733.8 million from $550.3 million in the prior-year quarter. The healthy demand in the Enterprise Technology segment supported the top line. The metric beat the consensus estimate by $51 million.
Enterprise Technology generated $657.1 million in revenues, up from $470.2 million in the prior-year quarter. The top line surpassed our estimate of $582.4 million. Strong demand trends in all regions drove net sales in this segment.
Service Provider Technology registered $76.6 million in revenues, down from $80.2 million in the year-ago quarter. The decline in revenues is primarily attributed to weakness in the South America, Asia Pacific and North America regions. Net sales missed our revenue estimate of $80.4 million.
Region-wise, revenues from North America were $382.8 million compared with $271.2 million in the year-ago quarter. Net sales from EMEA (Europe, the Middle East and Africa) aggregated $263.1 million, up from $204.9 million. Asia Pacific revenues increased to $53.1 million from $40.9 million in the year-earlier quarter. Revenues from South America were $34.7 million, up from $33.3 million a year ago.
Other Details for UI
During the September quarter, gross profit was $337.4 million compared with $231.6 million in the year-ago quarter, with respective margins of 46% and 42.1%. Favorable product mix, lower shipping costs, indirect operating expenses, and excess and obsolete inventory charges. Higher tariffs partially reversed this positive trend.
The research and development expenses increased to $48.5 million from $38 million due to higher employee-related expenses, higher prototype-related expenses and software costs. Operating income was $261.7 million, up from $169.2 million in the prior year.
UI’s Cash Flow & Liquidity
In the first quarter of fiscal 2026, Ubiquiti generated $198.5 million of cash in operating activities compared with $233.7 million in the prior-year quarter. As of Sept. 30, 2025, the company had $177.2 million in cash and cash equivalents, with $29 million of other long-term liabilities.
UI’s Zacks Rank & Other Stocks to Consider
Ubiquiti currently carries a Zacks Rank #3 (Hold).
Corning Incorporated (GLW - Free Report) currently sports a Zacks Rank #1 (Strong Buy). In the last reported quarter, it delivered an earnings surprise of 1.52%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Corning’s competitive strength lies in its focus on innovation. Corning offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth. In addition, broadband and 5G create near-term momentum.
InterDigital, Inc. (IDCC - Free Report) currently carries a Zacks Rank #2. The company delivered an earnings surprise of 36.26% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses
Celestica, Inc. (CLS - Free Report) currently sports a Zacks Rank 1. The company delivered an earnings surprise of 7.48% in the trailing four quarters.
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. AI investments are driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, and servers and storage-related products.