Lantronix, Inc. LTRX shares ended the last trading session 6.5% higher at $6.23. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.3% gain over the past four weeks.
The increase in share price for Lantronix is due to momentum in its drone business and strengthening fundamentals. Lantronix specializes in providing Industrial and Edge AI IoT solutions for high-growth applications in certain verticals, including enterprise IT, smart cities and commercial and defense unmanned systems.
LTRX’s unmanned aerial systems segment is becoming a meaningful, accelerating growth engine amid higher demand from various customers. The launch of the Edge AI drone solution (both NDAA and TAA-compliant) positions Lantronix to scale with growing defense and commercial demand. In December 2025, LTRX announced that its NDAA/TAA-compliant Edge AI technology and engineering services have been selected by Trillium Engineering, a leading maker of gimbaled imaging systems for uncrewed aircraft systems.
With the preview of its new Drone Reference Platform, LTRX is positioning itself as a foundational compute partner for next-generation Unmanned Aerial Vehicle programs across defense, intelligence and industrial markets. Designed for both defense and commercial applications, the platform enables drone OEMs to transition from idea to flight-ready prototype in a fraction of the traditional development time.
On the last earnings call, management noted that momentum in the drone segment could provide upside to initial expectations in fiscal 2026.
This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $30.2 million, down 3.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lantronix, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LTRX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lantronix is a member of the Zacks Computer - Networking industry. One other stock in the same industry, Extreme Networks EXTR, finished the last trading session 1.8% lower at $15.85. EXTR has returned -11.3% over the past month.
Extreme Networks' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.24. Compared to the company's year-ago EPS, this represents a change of +14.3%. Extreme Networks currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lantronix, Inc. (LTRX): Free Stock Analysis Report Extreme Networks, Inc. (EXTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
