Shares of Extreme Networks jump 28% on strong third quarter results

Shares of Extreme Networks Inc. rose more than 28% today after it posted better-than-expected third quarter results and raised its guidance.

The network equipment maker closed the three months ended March 31 with sales of $316.9 million. That represents a 11% year-over year increase, slightly more than what analysts had expected. 

Extreme Networks’ quarterly profit also topped the consensus estimate. The company delivered net income of $10.6 million, about triple what it generated the same time a year earlier. That sum amounts to adjusted earnings of $0.26 per share, slightly more than the $0.24 forecasted by Wall Street. 

The company’s stronger-than-anticipated growth was partly driven by its subscription software business. Extreme Networks sells software-as-a-service products and term licenses, which are licenses that enable a customer to use an on-premises application for a specific time period. The company tracks the combined annualized revenue generated by those products with a metric that it calls SaaS ARR.

Extreme Networks’ SaaS ARR reached $236.4 million after rising 28.6% year-over-year, or more than twice as fast as its overall revenue. The segment’s growth rate has accelerated significantly over the past 12 months. Extreme Networks posted year-over-year SaaS ARR growth of 13% in the third quarter of 2025 and 25% last quarter.

The company’s flagship software product is a platform called Extreme Platform ONE that launched last July. It enables administrators to centrally monitor data center switches, wireless access points and other network equipment. A built-in artificial intelligence assistant can provide pointers on how to make configuration changes and fix technical issues.

Another contributor to Extreme Networks’ SaaS ARR is ExtremeCloud IQ, a cloud-based network management platform. It can track the health of network devices from multiple hardware makers. Additionally, the platform includes a module that detects malicious wireless traffic directed at a company’s access points.

Extreme Networks offers its software products alongside several dozen network devices. 

The company sells multiple stackable switches, which are switches optimized for situations where an enterprise wishes to build a relatively small network and grow it over time. Extreme Networks also makes core aggregation devices. Such devices, which combine the features of a switch and a route, can be used to connect data center networks to internet providers’ infrastructure.

“We’ve fully addressed our current and longer-term supply chain needs, including memory, through targeted sourcing strategies, product redesign, and strategic purchase commitments,” said Extreme Networks Chief Executive Officer Ed Meyercord. “These actions position us for continued share gains and growth.”

Extreme Networks has raised its full-year guidance to between $1.275 billion and $1,28 billion from $1.26 billion to $1.27 billion. The company expects to post adjusted earnings of $1.02 to $1.04 per share.

Image: Extreme Networks