Abstract
Digi International will report fiscal results on August 05, 2026 Post Market; this preview summarizes consensus revenue, margins, net income, and adjusted EPS expectations alongside segment dynamics and analyst positioning since January 01, 2026 through July 29, 2026.
Market Forecast
Consensus for the current quarter points to revenue of 132.39 million US dollars, an adjusted EPS of 0.67, and EBIT of 23.09 million US dollars, implying year-over-year growth of 24.62% in revenue, 32.88% in EPS, and 34.02% in EBIT. Forecast detail on margins implies the company sustaining progress, though specific gross and net margin forecasts are not separately disclosed in the dataset.
Digi’s core businesses remain split between hardware products and services, with hardware contributing 84.46 million US dollars and services contributing 46.29 million US dollars in the last reported quarter; demand strength in connected hardware and recurring software and services is expected to extend into the current quarter.
Within segments, services represents the most promising growth lever, underpinned by expanding attach rates and subscription uptake; the base stood at 46.29 million US dollars last quarter and is poised for further year-over-year expansion.
Last Quarter Review
Digi International’s prior quarter delivered revenue of 130.74 million US dollars, a gross profit margin of 65.16%, GAAP net income attributable to shareholders of 11.30 million US dollars, a net profit margin of 8.65%, and adjusted EPS of 0.62, with revenue up 25.11% year over year and adjusted EPS up 21.57% year over year.
Quarter-on-quarter, net income contracted by 3.48%, but the company still outperformed prior forecasts on revenue and EBIT in the period.
Main business composition featured 84.46 million US dollars from hardware products and 46.29 million US dollars from services; services continued to benefit from higher recurring revenue, suggesting healthy customer retention and cross-sell traction.
Current Quarter Outlook
Main business trajectory
Hardware products are expected to remain the revenue anchor this quarter, supported by demand for connected devices and networking modules in industrial and enterprise deployments. Order momentum exiting the last quarter was solid given the revenue beat, indicating backlog conversion and better fulfillment. While mix can pressure gross margin when hardware grows faster than services, the company’s 65.16% gross margin baseline last quarter gives management latitude to lean into volumes without sacrificing overall profitability.
Most promising growth engine
The services portfolio, built on subscriptions, monitoring, and device management, is positioned to outgrow the hardware base and deepen margins over time. With 46.29 million US dollars in services revenue last quarter, incremental growth should disproportionately support operating leverage as opex scales more slowly than recurring revenue. Higher attach rates to device shipments and upselling to premium service tiers are the primary catalysts, and the consensus EPS uplift of 32.88% year over year aligns with that thesis.
Stock price sensitivity factors this quarter
Two variables are likely to drive share performance around the print: the pace of revenue growth versus the 24.62% bar and color on services mix expansion. Any progress toward a higher recurring mix can support multiple resilience even if headline revenue aligns with expectations. Conversely, a hardware-led beat without clear evidence of services acceleration could raise questions about sustainability and margin trajectory, especially after a 3.48% sequential dip in GAAP net income last quarter.
Analyst Opinions
Across the coverage surveyed since January 2026, the majority of analysts lean constructive, citing continued double-digit top-line growth and margin durability from software and services, while a minority voice caution on near-term hardware cyclicality. Notably, the consensus embeds 24.62% revenue growth and 32.88% EPS growth for the quarter, consistent with a bullish stance that services-led mix shift can offset any hardware lumpiness. Bullish commentators emphasize EBIT growth of 34.02% year over year and the company’s track record of beating prior revenue and EBIT expectations, supporting confidence into August 05, 2026.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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