Extreme Networks posts double-digit FY26 revenue rise amid AI demand boom

This marks the vendor’s ninth consecutive quarter of year-on-year growth

Extreme Networks has reported another quarter of growth, rounding off a double-digit FY26 amid continued demand for its AI networking platform.

The US-based networking vendor posted FY26 top line of $1.3bn (£953.3m), up 12.6 per cent year-on-year from $1.1bn last year.

Q4 turnover climbed 10.3 per cent to $338.55m, compared with $307m during the same period a year earlier.

SaaS annual recurring revenue (ARR) soared 17.7 per cent to $244.3m during the quarter.

Revenue breakdown

Product revenue climbed 15 per cent to $218.5m in Q4 and 15 per cent to $809.6m for the full year.

Subscription and support earnings also increased, rising to $120.1m during Q4 and $474m across FY26.

“We closed FY26 delivering 13 per cent year-over-year revenue growth, and the fourth quarter marked our sixth consecutive quarter of double-digit growth,” said president and CEO Ed Meyercord.

“These results are fuelled by accelerating demand for our AI platform, a differentiated portfolio, strong execution and broad product availability.”

Meyercord explained that Platform ONE accounted for more than 30 per cent of the company’s subscription bookings during its first year of availability, with bookings doubling quarter on quarter in Q4.

CFO Kevin Rhodes said the company recorded its ninth consecutive quarter of sequential product revenue increase and expects that momentum to continue after securing component supply through FY28.

“The targeted pricing actions we implemented are successfully offsetting the incremental supply chain costs the industry is facing and provide increased confidence and visibility into our margin outlook,” he said.

“Looking ahead to FY27, we continue to expect double-digit product revenue growth.”

AI transformation and FY27 expectations

During the quarter, Extreme expanded Platform ONE with new AI-enabled capabilities, launched four Wi-Fi 7 access points and secured several customer wins.

Wi-Fi 7 is the latest wireless networking standard, designed to deliver higher data transfer speeds, lower latency and improved network efficiency.

These deployments included Nottingham City Council, the University of Technology Sydney, the University of Florida and the Tennessee Titans’ new Nissan Stadium.

Earlier this year, the vendor launched Extreme Partner First, a channel scheme designed to enhance partner profitability through AI-powered tools.

In February, SVP of global channels and strategic initiatives Joe Spencer told CRN that more than 90 per cent of the organisation’s business flows through partners.

For FY27, the vendor expects Q1 revenue of between $334m and $339m.

For the full year, it projects turnover of between $1.38bn and $1.4bn and expects another year of double-digit product revenue rise.

This marks the organisation’s ninth quarter of year-on-year revenue increase.