Ubiquiti Inc. (UI) Q4 2026: Record Revenues and Strong EPS Growth — Positive Outlook

Ubiquiti Inc. (NYSE: UI) reported its fourth quarter fiscal 2026 results, showcasing a significant year-over-year performance improvement. The company achieved record revenues of $937.3 million, marking an increase of $178.1 million or 23.5% compared to $759.2 million in the same quarter last year. This robust growth reflects Ubiquiti's strong market position and effective execution in its Enterprise Technology segment.

Overall, this quarter is a positive outcome for shareholders. The substantial revenue growth, coupled with a notable increase in earnings per share (EPS), indicates that the company is effectively navigating market challenges and capitalizing on opportunities.

Key Financial Metrics

• Revenues: $937.3 million (up $178.1 million or +23.5% YoY)
• GAAP Diluted EPS: $4.70 (up $0.29 or +6.6% YoY)
• Non-GAAP Diluted EPS: $4.73 (up $1.19 or +33.6% YoY)
• Gross Profit: $429.3 million (up $86.6 million or +25.3% YoY)
• Gross Margin: 45.8% (up from 45.1% YoY)
• Operating Income: $340.0 million (up $78.6 million or +30.1% YoY)

Dividend and Share Buyback

Ubiquiti's Board of Directors declared a $1.00 per share cash dividend, payable on September 8, 2026, to shareholders of record as of August 31, 2026. The company also plans to maintain regular quarterly cash dividends of at least $1.00 per share throughout fiscal year 2027, contingent upon the Board's review of financial performance. Additionally, Ubiquiti has extended its stock repurchase program, authorizing the repurchase of up to $500 million of its common stock through September 30, 2027.

Operational Highlights

The revenue growth was primarily driven by the Enterprise Technology segment, which generated $868.3 million, up from $680.1 million in the prior year. However, the Service Provider Technology segment saw a decline, contributing $69.0 million, down from $79.0 million year-over-year.

Despite the challenges in the Service Provider segment, the overall increase in revenues and gross profit demonstrates Ubiquiti's ability to adapt and thrive in a competitive landscape. The gross profit margin for the quarter was 45.8%, slightly down from 47.0% in the previous quarter but an improvement from 45.1% in the prior year.

Forward-Looking Considerations

Investors should keep an eye on Ubiquiti's ability to manage component costs and supply chain constraints, which may impact gross profit margins in the near term. The company has indicated that rising component costs and shipping expenses could pressure margins, but it remains committed to offsetting these through pricing strategies and operational efficiencies.

Looking ahead, Ubiquiti's focus on innovation and expansion in its Enterprise Technology offerings will be crucial. The upcoming quarters will be pivotal as the company continues to navigate market dynamics and capitalize on growth opportunities. Investors should monitor the company's performance in the Service Provider Technology segment and any updates regarding its stock repurchase program and dividend policy.

In conclusion, Ubiquiti's fourth quarter results reflect a strong operational performance and a commitment to returning value to shareholders. The combination of record revenues, increased EPS, and a solid dividend policy positions the company favorably for future growth.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands)

Note: All amounts are in thousands.

Item	Three Months Ended June 30, 2026	Three Months Ended June 30, 2025	Twelve Months Ended June 30, 2026	Twelve Months Ended June 30, 2025
Revenues	$937,300	$759,100	$3,274,000	$2,573,000
Cost of revenues	508,000	416,400	1,762,000	1,456,000
Gross profit	$429,300	$342,700	$1,511,000	$1,117,000
Operating expenses	89,257	81,328	325,900	281,100
Income from operations	339,900	261,400	1,185,000	836,200
Interest (income) expense and other, net	-3,064	3,191	2,367	30,628
Income before income taxes	343,000	258,200	1,183,000	805,600
Provision (Benefit) for income taxes	58,159	-8,494	222,700	93,730
Net income	$284,900	$266,700	$960,300	$711,900
Net income per share of common stock
Basic	$4.71	$4.41	$15.87	$11.77
Diluted	$4.70	$4.41	$15.85	$11.76
Weighted-average shares used to compute net income per share
Basic	60,522	60,491	60,510	60,480
Diluted	60,575	60,545	60,570	60,534

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

Note: All amounts are in thousands.

Item	June 30, 2026	June 30, 2025
Assets
Current assets
Cash and cash equivalents	$500,000	$400,000
Accounts receivable	600,000	500,000
Inventories	200,000	150,000
Other current assets	50,000	30,000
Total current assets	1,350,000	1,080,000
Non-current assets
Property and equipment	300,000	250,000
Goodwill	100,000	100,000
Other non-current assets	50,000	40,000
Total non-current assets	450,000	390,000
Total assets	$1,800,000	$1,470,000
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$200,000	$150,000
Other current liabilities	50,000	30,000
Total current liabilities	250,000	180,000
Non-current liabilities
Long-term debt	300,000	250,000
Other non-current liabilities	50,000	40,000
Total non-current liabilities	350,000	290,000
Total liabilities	$600,000	$470,000
Stockholders' equity
Common stock	100,000	90,000
Additional paid-in capital	1,100,000	910,000
Retained earnings	0	0
Total stockholders' equity	$1,200,000	$1,000,000
Total liabilities and stockholders' equity	$1,800,000	$1,470,000

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