Shares of Extreme Networks (EXTR) are soaring 5.09% in pre-market trading on Wednesday following the release of the company's fourth-quarter financial results for fiscal year 2025. The network infrastructure equipment provider posted better-than-expected revenue, driving investor optimism.
Extreme Networks reported Q4 revenue of $307 million, surpassing the IBES estimate of $299.9 million. This revenue beat demonstrates the company's ability to outperform market expectations in a challenging economic environment. Additionally, the company achieved an adjusted operating margin of 15.2% and an adjusted gross margin of 62.3%, indicating solid operational efficiency.
Despite the positive revenue figures, Extreme Networks reported an earnings per share (EPS) of -$0.06 for the quarter. While the negative EPS might typically be a concern, investors appear to be focusing on the strong top-line performance and margin improvements. The pre-market stock surge suggests that shareholders are optimistic about the company's growth trajectory and its positioning in the network infrastructure market.
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