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Can Healthy Revenue Growth Boost Ubiquiti's Q3 Earnings?
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Key Takeaways
Ubiquiti is expected to post Q3 revenue growth driven by Enterprise Technology demand.
UI's Enterprise Technology revenue estimate rose to $675.06M from $585.72M last year.
Ubiquiti beat earnings estimates in the last 4 quarters with a trailing surprise of 55.34%.
Ubiquiti, Inc. (UI - Free Report) is set to report third-quarter fiscal 2026 results on May 8, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 38.08%. In the trailing four quarters, the company delivered an earnings surprise of 55.34%, beating estimates on all occasions. Ubiquiti is expected to report year-over-year revenue growth backed by solid demand in the Enterprise segment.
Factors at Play
Ubiquiti offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing.
The Enterprise Technology segment remains the biggest driver for the company. The growing proliferation of IoT devices across industries is propelling growth in this segment. The company spends significantly on research and development (R&D) activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus raising the top line.
For the fiscal third quarter, the Zacks Consensus Estimate for the Enterprise Technology vertical is pegged at $675.06 million, up from $585.72 million a year ago. Service Provider technology is projected to report revenues of $80.9 million, up from $81.68 million a year ago.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $785.13 million, suggesting an increase from the year-ago quarter’s reported figure of $664.17 million. The consensus estimate for adjusted earnings per share is pegged at $3.18, implying growth from $3 reported in the prior year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Ubiquiti for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Cisco Systems, Inc. (CSCO - Free Report) is set to release its second-quarter 2026 numbers on May 13. It has an Earnings ESP of +1.92% and carries a Zacks Rank #2 at present.
The Earnings ESP for Keysight Technologies, Inc. (KEYS - Free Report) is +0.86%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report second-quarter 2026 numbers on May 19.
The Earnings ESP for Motorola Solutions (MSI - Free Report) is +0.72%, and it carries a Zacks Rank of 3 at present. The company is scheduled to report first-quarter 2026 numbers on May 7.
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Can Healthy Revenue Growth Boost Ubiquiti's Q3 Earnings?
Key Takeaways
Ubiquiti, Inc. (UI - Free Report) is set to report third-quarter fiscal 2026 results on May 8, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 38.08%. In the trailing four quarters, the company delivered an earnings surprise of 55.34%, beating estimates on all occasions. Ubiquiti is expected to report year-over-year revenue growth backed by solid demand in the Enterprise segment.
Factors at Play
Ubiquiti offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing.
The Enterprise Technology segment remains the biggest driver for the company. The growing proliferation of IoT devices across industries is propelling growth in this segment. The company spends significantly on research and development (R&D) activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus raising the top line.
For the fiscal third quarter, the Zacks Consensus Estimate for the Enterprise Technology vertical is pegged at $675.06 million, up from $585.72 million a year ago. Service Provider technology is projected to report revenues of $80.9 million, up from $81.68 million a year ago.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $785.13 million, suggesting an increase from the year-ago quarter’s reported figure of $664.17 million. The consensus estimate for adjusted earnings per share is pegged at $3.18, implying growth from $3 reported in the prior year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Ubiquiti for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ubiquiti Inc. Price and EPS Surprise
Ubiquiti Inc. price-eps-surprise | Ubiquiti Inc. Quote
Zacks Rank: UI carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Cisco Systems, Inc. (CSCO - Free Report) is set to release its second-quarter 2026 numbers on May 13. It has an Earnings ESP of +1.92% and carries a Zacks Rank #2 at present.
The Earnings ESP for Keysight Technologies, Inc. (KEYS - Free Report) is +0.86%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report second-quarter 2026 numbers on May 19.
The Earnings ESP for Motorola Solutions (MSI - Free Report) is +0.72%, and it carries a Zacks Rank of 3 at present. The company is scheduled to report first-quarter 2026 numbers on May 7.