Price Chart

Executive Summary

Ubiquiti reported record Q4 FY2026 revenue of $937.3M (+23.5% YoY) and GAAP EPS of $4.70, but the headline beat is misleading. GAAP EPS declined 6.6% YoY from $4.41 to $4.70, while the prior-year quarter included a $53.7M deferred tax benefit that depressed GAAP net income. On an operating basis, non-GAAP EPS surged 33.6% YoY to $4.73. The company also extended its $500M buyback through Sep 2027 and raised its quarterly dividend to $1.00/share. However, the sequential gross margin decline from 47.0% to 45.8% and management's warning about rising component costs create near-term headwinds that temper the otherwise strong top-line performance. The cross-filing context shows the prior quarter's EPS of $3.88 missed consensus of $4.03, adding a negative sequential comparison to this report's $4.70 GAAP EPS.

Key Financial Metrics

Key Facts

• Record Q4 FY2026 revenue of $937.3M, up 23.5% YoY and 18.9% QoQ
• GAAP diluted EPS of $4.70, up 6.6% YoY (but prior year had $53.7M deferred tax benefit depressing net income)
• Non-GAAP diluted EPS of $4.73, up 33.6% YoY
• Full FY2026 revenue of $3.27B, up 27.2% YoY; GAAP EPS $15.85, up 34.8% YoY
• Gross margin declined sequentially from 47.0% to 45.8% due to higher component and shipping costs
• Board extended $500M stock repurchase program through September 30, 2027
• Quarterly dividend raised to $1.00/share, with intention to pay at least $1.00/quarter in FY2027
• Enterprise Technology revenue grew 27.7% YoY to $868.3M; Service Provider Technology declined 12.7% YoY to $69.0M
• Company repaid all outstanding debt as of March 2026, generating net interest income of $3.1M in Q4
• Management warned of rising component costs and potential supply constraints pressuring near-term gross margins

Financial Impact

Record revenue of $937.3M (+23.5% YoY) and GAAP net income of $284.9M (+6.8% YoY). Non-GAAP net income of $286.5M (+33.6% YoY). Full FY2026 revenue $3.27B (+27.2% YoY).

Risk Factors

• Rising component costs and supply constraints could further compress gross margins
• Sequential gross margin decline from 47.0% to 45.8% signals near-term headwinds
• Service Provider Technology revenue continues to decline (-12.7% YoY)
• Prior quarter EPS miss and subsequent -32.6% T+20 decline indicate high stock sensitivity to negative surprises
• Tariff exposure and geopolitical tensions (Russia-Ukraine, China-Taiwan) pose ongoing risks

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

US Market Status