FatPipe, Inc. (NASDAQ:FATN) stock fell Wednesday, following a strong performance on Tuesday when the stock skyrocketed after the company reported solid third-quarter earnings.
The company reported a 30% year-over-year increase in total revenue and a 48% rise in monthly recurring billings, highlighting solid growth.
The broader market indices are also experiencing losses, adding pressure to shares as the Technology sector is down approximately 2.6%.
FATN Q3 Revenue and Billings Surge
FatPipe reported total revenue of $4.1 million for the third quarter of fiscal year 2026, reflecting a 30% growth compared to the same period last year. Additionally, the company achieved a 48% increase in monthly recurring billings, indicating strong demand for its subscription offerings.
The report highlighted that the company closed multiple large multi-site SD-WAN deployments across various sectors, including education and financial services.
Dr. Ragula Bhaskar, CEO of FatPipe, said, “We are seeing strong demand for our secure, high-performance SD-WAN and cybersecurity solutions, particularly from customers looking to modernize critical infrastructure while reducing complexity and cost. With growing recurring billings, expanding sales coverage, and a differentiated single-stack cybersecurity offering, we believe FatPipe is well-positioned for sustained long-term growth.”
The broader market is experiencing mixed performance, with the S&P 500 down 0.4% and the Nasdaq declining 1.56%. This broader market context suggests that, while FatPipe’s earnings report shows positive growth, the stock is moving lower in step with overall market sentiment.
FATN’s Mixed Technical Indicators
Currently, FatPipe is trading 12.2% above its 20-day simple moving average (SMA) but 37.7% below its 100-day SMA, suggesting a potential struggle to maintain longer-term momentum. Over the past 12 months, the stock has decreased by approximately 82.38% and is positioned closer to its 52-week lows than its highs.
The RSI stands at 65.13, which is considered neutral territory, while the MACD is above the signal line, indicating bullish momentum. The combination of a neutral RSI and bullish MACD suggests mixed momentum for the stock.
- Key Resistance: $2.50
- Key Support: $2.00
The recent earnings report highlights the company’s strong growth in recurring revenue, which is crucial as businesses increasingly seek secure networking solutions. FatPipe’s focus on expanding its sales organization and channel partner network further positions it to capture market share in a competitive landscape.
FATN Price Action: Fatpipe shares were down 10.38% at $2.33 at the time of publication on Wednesday, according to Benzinga Pro data.
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