Ubiquiti Q2 Earnings Surpass Estimates on Solid Revenue Growth

Ubiquiti Inc. UI reported solid second-quarter fiscal 2026 results, with both bottom and top lines surpassing the Zacks Consensus Estimate.

The New York-based networking products and solutions provider recorded a solid 35.8% year-over-year increase in revenues, driven by steady growth in both Enterprise and Service Provider segments, supported by healthy enterprise demand and continued investments by telecom operators for network upgrades and 5G deployments.

Net Income

Net income, on a GAAP basis, in the quarter was $233.6 million or $3.86 per share compared with $136.8 million or $2.26 per share in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.

Non-GAAP net income in the quarter was $235.1 million or $3.88 per share compared with $138.1 million or $2.28 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $2.81 per share.

Ubiquiti Inc. Price, Consensus and EPS Surprise

Ubiquiti Inc. price-consensus-eps-surprise-chart | Ubiquiti Inc. Quote

Revenues

Net sales in the quarter increased to $814.9 million from $599.9 million in the prior-year quarter. Top-line growth was driven by higher revenue contributions from both the Enterprise Technology and Service Provider Technology segments. The top line beat the Zacks Consensus Estimate of $720 million.

Enterprise Technology generated $729 million in revenues, up from $518.2 million in the prior-year quarter. An increase in revenues across all regions drove net sales in this segment.

Service Provider Technology registered $85.9 million in revenues, up from $81.7 million in the year-ago quarter. The segment experienced revenue expansion across all regions except South America. 

Region-wise, revenues from North America were $443.6 million compared with $321.6 million in the year-ago quarter. Net sales from Europe, the Middle East and Africa aggregated $280.7 million, up from $208.6 million. Asia Pacific revenues increased to $54.5 million from $43.1 million in the year-earlier quarter. Revenues from South America were $36.1 million, up from $26.6 million a year ago.

Other Details

During the December quarter, gross profit was $374 million compared with $247.2 million in the year-ago quarter, with respective margins of 45.9% and 41.2%. Favorable product mix, lower shipping costs, and lower excess and obsolete inventory charges. Higher tariffs partially reversed this positive trend.

The operating expenses increased to $81.1 million from the prior-year figure of $68.4 million due to higher employee and prototype-related expenses, higher marketing expenses, and fees associated with webstore credit card processing. Operating income was $292.9 million, up from $178.8 million in the prior year.

Cash Flow & Liquidity

During the first six months of fiscal 2026, Ubiquiti generated $462.4 million of cash in operating activities, up from $386.1 million in the prior-year period. As of Dec. 31, 2025, the company had $302.8 million in cash and cash equivalents, with $32.9 million of other long-term liabilities.

Zacks Rank

Ubiquiti currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Arista Networks Inc. ANET is scheduled to release fourth-quarter 2025 earnings on Feb.12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb.19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 6.98%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.

Lyft, Inc. LYFT is scheduled to release fourth-quarter 2025 earnings on Feb.10. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, suggesting growth of 6.67% from the year-ago reported figure.

Lyft has a long-term earnings growth expectation of 24.41%. The company delivered an average earnings surprise of 1.17% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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