UI

Ubiquiti Inc. UI delivered an impressive fourth-quarter fiscal 2026 performance, with both earnings and revenues comfortably surpassing the respective Zacks Consensus Estimate. Robust demand for the company’s Enterprise Technology products, particularly the UniFi ecosystem, continued to fuel top-line expansion.However, the strong headline numbers fail to offset several concerns surrounding the stock. Rising component and logistics costs, persistent weakness in the Service Provider Technology business and the likelihood of growth moderation could limit upside from current levels. The company’s concentrated ownership structure and an unfavorable industry backdrop add to the headwinds.Let us dig a little deeper into the underlying pros and cons of investing in the stock. Ubiquiti reported non-GAAP earnings of $4.73 per share for the fiscal fourth quarter, beating the Zacks Consensus Estimate by 27.8%. The bottom line increased 33.6% from $3.54 reported in the prior-year quarter. Revenues climbed 23.5% year over year to a record $937.3 million and surpassed the consensus mark by 12.6%. The company topped both earnings and revenue estimates in each of the past four quarters.Enterprise Technology remained the primary growth driver, with revenues surging 27.7% year over year to $868.3 million. For fiscal 2026, total revenues increased 27.2% to $3.27 billion, while non-GAAP earnings rose to $15.95 per share.Ubiquiti exited the year with solid liquidity. Cash and cash equivalents plus short-term investments totaled $611.2 million as of June 30, 2026, while cash generated from operating activities reached $928.7 million during the fiscal year. Despite these positives, several factors warrant caution. An immediate concern is the emerging pressure on gross margin. Although Ubiquiti’s fourth-quarter GAAP gross margin of 45.8% improved 70 basis points (bps) year over year, it contracted 120 bps sequentially from 47%.Management attributed the sequential contraction primarily to higher component and shipping costs. Ubiquiti revealed that certain component costs increased during the quarter and could continue to rise, while component availability could remain constrained. If the company is unable to fully offset these increases through pricing and other measures, gross margin is likely to come under additional pressure in the near term. Supply constraints could also restrict Ubiquiti’s ability to meet demand. Ubiquiti’s growth is becoming increasingly dependent on Enterprise Technology, while its Service Provider Technology portfolio continues to lose momentum. Service Provider Technology revenues declined to $69 million in the fiscal fourth quarter from $79 million a year earlier, representing a fall of roughly 13%. For fiscal 2026, revenues from the business decreased 5% to $301.9 million. In contrast, Enterprise Technology revenues surged 32% during the year and accounted for 91% of total revenues.The growing dependence on Enterprise Technology exposes Ubiquiti to greater product-mix concentration. Continued weakness in its Service Provider portfolio could also make it more difficult to sustain the recent companywide growth rates if momentum in Enterprise Technology moderates. Ubiquiti has gained 7.6% over the past year compared with the industry’s growth of 29.7%. It has outperformed peers like Comtech Telecommunications Corp. CMTL but lagged InterDigital, Inc. IDCC. While InterDigital has gained 29.2%, Comtech is down 12.8% over this period. One-Year UI Stock Price Performance Image Source: Zacks Investment Research Ubiquiti’s strong Enterprise Technology portfolio, expanding UniFi ecosystem, healthy cash generation and consistent earnings surprises remain encouraging. The fourth-quarter fiscal 2026 results reinforce the strength of underlying demand.However, these positives should be weighed against emerging margin pressure from component and shipping costs, ongoing supply constraints, weakness in Service Provider Technology, slowing growth expectations and a premium valuation. Ubiquiti currently carries a Zacks Rank #4 (Sell). Moreover, the Zacks Wireless Equipment industry is positioned in the bottom 24% of more than 250 Zacks industries, adding another reason for caution.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.With increasing operational headwinds and unfavorable Zacks Rank, investors would be better off avoiding UI stock for now and waiting for a more attractive entry point or clearer evidence that strong growth and margins can be sustained in fiscal 2027. 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 Ubiquiti Inc. (UI) : Free Stock Analysis Report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ubiquiti Inc. (UI) came out with quarterly earnings of $4.73 per share, beating the Zacks Consensus Estimate of $3.7 per share. This compares to earnings of $3.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.84%. A quarter ago, it was expected that this computer networking company would post earnings of $3.18 per share when it actually produced earnings of $3.88, delivering a surprise of +22.01%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Ubiquiti, which belongs to the Zacks Wireless Equipment industry, posted revenues of $937.32 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 12.55%. This compares to year-ago revenues of $759.15 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ubiquiti shares have added about 3.7% since the beginning of the year versus the S&P 500's gain of 11.6%. While Ubiquiti has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ubiquiti was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.74 on $897.97 million in revenues for the coming quarter and $15.66 on $3.6 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Equipment is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Aviat Networks, Inc. (AVNW), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -39.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Aviat Networks, Inc.'s revenues are expected to be $109.58 million, down 5% from the year-ago quarter. 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 Ubiquiti Inc. (UI) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ubiquiti Inc. (NYSE:UI) shares gained 3.3% after the networking equipment company delivered stronger-than-expected fourth-quarter fiscal 2026 results, supported by continued growth across its Enterprise Technology platform. Adjusted earnings came in at $4.73 per share, exceeding the analyst consensus of $4.48 by $0.25. Quarterly revenue reached $937.3 million, comfortably ahead of expectations of $868.35 million. Revenue increased 23.5% year on year from $759.2 million in the fourth quarter of fiscal 2025, helping drive the positive reaction in Ubiquiti shares. The Enterprise Technology business was the main contributor to Ubiquiti’s revenue expansion during the quarter, generating $868.3 million compared with $680.1 million in the corresponding period last year. “The growth in revenues over the prior quarter and the comparable prior year periods were driven by increase in revenue from our Enterprise Technology platform,” the company stated in its press release. Gross margin improved on a year-on-year basis to 45.8% from 45.1%, although it declined from 47.0% in the preceding quarter. Ubiquiti said higher costs for certain components affected the business during the period. The company cautioned that component prices could continue rising while supply availability may remain constrained, creating potential pressure on gross margins in the near term. For the full 2026 fiscal year, Ubiquiti generated revenue of $3.3 billion, representing growth of 27.2% from $2.6 billion in fiscal 2025. Adjusted earnings per share increased sharply to $15.95 from $10.96 in the previous year, reflecting the company’s strong revenue expansion and improved annual profitability. The results underline the momentum within Ubiquiti’s Enterprise Technology platform, although investors will also be monitoring whether higher component costs begin to weigh more heavily on margins during fiscal 2027. Alongside its results, Ubiquiti’s board declared a quarterly dividend of $1.00 per share, payable on September 8, 2026. The company also indicated that it intends to maintain regular quarterly dividends of at least $1.00 per share throughout fiscal 2027. Ubiquiti additionally extended its share repurchase programme, authorising up to $500 million of stock buybacks through September 30, 2027. The combination of stronger-than-expected quarterly results, substantial full-year growth and continued shareholder returns helped lift Ubiquiti shares following the earnings announcement. Ubiquiti stock price

~ Record Revenues of $937.3 million ~ NEW YORK, August 21, 2026--(BUSINESS WIRE)--Ubiquiti Inc. (NYSE: UI) ("Ubiquiti" or the "Company") today announced its financial results for the fourth quarter and full year fiscal 2026, ended June 30, 2026. Fourth Quarter Fiscal 2026 Financial Summary Revenues of $937.3 million GAAP diluted EPS of $4.70 Non-GAAP diluted EPS of $4.73 Full Fiscal 2026 Financial Summary Revenues of $3.3 billion GAAP diluted EPS of $15.85 Non-GAAP diluted EPS of $15.95 Additional Financial Highlights The Company's Board of Directors (the "Board") declared a $1.00 per share cash dividend payable on September 8, 2026 to shareholders of record at the close of business on August 31, 2026. The Company intends to pay regular quarterly cash dividends of at least $1.00 per share during each quarter of fiscal year 2027, although all subsequent dividends, and the establishment of record and payment dates, are subject to final determination by the Board each quarter after its review of the Company’s financial performance and results of operations, available cash and cash flow, capital requirements, applicable corporate legal requirements, and other factors. The Company has extended the expiration date of its previously announced stock repurchase program, authorizing the Company to repurchase up to $500 million of its common stock through September 30, 2027, as disclosed in the Form 8-K filed on August 21, 2026. Financial Highlights ($, in millions, except per share data)(Unaudited) Income Statement Items Revenues Revenues for the fourth quarter of fiscal 2026 were $937.3 million, representing an increase from the prior quarter of 18.9% and an increase from the comparable prior year period of 23.5%. On a full year basis, revenues for fiscal 2026 were $3.3 billion, representing a 27.2% increase compared to full year fiscal 2025. The growth in revenues over the prior quarter and the comparable prior year periods were driven by increase in revenue from our Enterprise Technology platform, offset in part by a decrease in revenues from our Service Provider Technology platform. Gross Profit Margin-Gross Profit as a percentage of Revenue During the fourth quarter of fiscal 2026, GAAP gross profit was $429.3 million. GAAP gross margin of 45.8% decreased by 1.2% as compared to the prior quarter GAAP gross margin of 47.0% and increased by 0.7% as compared to the comparable prior year period GAAP gross margin of 45.1%. On a full year basis, fiscal 2026 GAAP gross profit was $1,511.4 million. Fiscal 2026 GAAP gross margin of 46.2% increased by 2.8% as compared to fiscal 2025 GAAP gross margin of 43.4%. The decrease in gross profit margin as compared to the prior quarter was primarily driven by higher costs of components and higher shipping costs, offset in part by lower other indirect costs. The increase in gross profit margin as compared to the comparable prior year period was primarily driven by lower other indirect costs, offset in part by unfavorable product mix, higher shipping costs and higher costs of components. The increase in gross profit margin for full fiscal 2026 as compared to full fiscal 2025 was primarily driven by favorable product mix, lower other indirect costs offset in part by higher tariff costs. During the fourth quarter of fiscal 2026, the Company experienced an increase in certain component costs. Component costs may continue to rise and availability may remain constrained. These factors may result in near-term pressure on our gross profit margins, particularly to the extent we are unable to offset higher component costs through pricing or other measures. In addition, ongoing supply constraints could limit our ability to meet customer demand and negatively impact our revenues and gross profit margins. Research and Development During the fourth quarter of fiscal 2026, research and development ("R&D") expenses were $53.0 million. This reflects an increase as compared to the R&D expenses of $51.8 million in the prior quarter and R&D expenses of $47.5 million in the comparable prior year period. On a full year basis, fiscal 2026 R&D expenses were $204.2 million, representing an increase of $34.5 million as compared to R&D expenses of $169.7 million for fiscal 2025. The increase in R&D expenses as compared to the prior quarter was primarily driven by higher prototype-related expenses and software expenses, offset in part by lower employee-related expenses. The increase in R&D expenses as compared to the comparable prior year period was primarily driven by higher employee-related expenses, software expenses and facility costs. The increase in R&D expenses for fiscal 2026 compared to fiscal 2025 was primarily driven by higher employee-related expenses, prototype-related expenses, facility costs and software expenses, offset in part by lower depreciation. Sales, General and Administrative The Company’s sales, general and administrative ("SG&A") expenses for the fourth quarter of fiscal 2026 were $36.3 million. This reflects an increase as compared to the SG&A expenses of $28.1 million in the prior quarter and an increase compared to the SG&A expenses of $33.9 million in the comparable prior year period. On a full year basis, fiscal 2026 SG&A expenses were $121.8 million, reflecting an increase of $10.3 million as compared to SG&A expenses of $111.5 million for fiscal 2025. The increase in SG&A costs as compared to the prior quarter was primarily attributable to higher professional fees, higher credit card processing fees associated with incremental webstore sales, employee-related expenses and marketing expenses. The increase in SG&A costs as compared to the comparable prior year period was primarily due to higher professional fees, higher credit card processing fees arising from incremental webstore sales, marketing expenses and employee-related expenses, offset in part by lower reserves taken against accounts receivables. The increase in SG&A costs for fiscal 2026 compared to fiscal 2025 was primarily attributable to higher credit card processing fees associated with incremental webstore sales, higher professional fees, marketing expenses, employee-related expenses and software expenses, offset in part by lower reserves taken against accounts receivables. Interest Expense (Income) and Other, net During the fourth quarter of fiscal 2026, the company reported Interest expense (income) and other, net ("I&O") income of $3.1 million. In the prior quarter and the comparable prior year period the company had reported I&O expense of $0.7 million and $3.2 million, respectively. On a full year basis, fiscal 2026 I&O expenses were $2.4 million, reflecting a decrease of $28.3 million as compared to the I&O expenses of $30.6 million for fiscal 2025. The increase in I&O income compared to the prior quarter was primarily attributable to higher interest income and lower interest expense, driven by a decrease in outstanding debt and lower foreign exchange losses. The increase in I&O income compared to comparable prior year period was primarily driven by higher interest income and lower interest expense due to a decrease in outstanding debt. This was partially offset by higher foreign exchange losses. The decline in I&O expense for fiscal 2026 as compared to fiscal 2025 was primarily driven by lower interest expense driven by a decrease in outstanding debt and lower interest rates and higher interest income on invested cash, offset in part by higher foreign exchange losses. Income Taxes The fourth quarter fiscal 2025 GAAP provision for income taxes reflected a benefit of $8.5 million, primarily as a result of an intercompany transfer of intangible properties. Please see pages 7 and 8 of this press release for non-GAAP adjustments to our financial results, including adjustments arising from this transaction. Net Income and Earnings Per Share During the fourth quarter of fiscal 2026, GAAP net income was $284.9 million and non-GAAP net income was $286.5 million. This reflects an increase in GAAP net income and non-GAAP net income from the comparable prior year period by 6.8% and 33.6%, respectively. The primary factors contributing to this growth were higher revenues and increased gross profit. Fourth quarter fiscal 2026 GAAP earnings per diluted share was $4.70, and non-GAAP earnings per diluted share was $4.73. Both measures increased from the comparable prior year period, with GAAP and non-GAAP earnings per diluted share increasing by 6.6% and 33.6% respectively. As discussed elsewhere in this press release, the difference between GAAP net income and non-GAAP net income for the fourth quarter of fiscal 2025 is primarily driven by the immediate recognition under GAAP of the $53.7 million deferred tax asset described in the prior paragraph. About Ubiquiti Inc. Ubiquiti Inc. is focused on democratizing network technology on a global scale — creating networking infrastructure in over 200 countries and territories around the world. Our professional networking products are powered by our UISP and UniFi software platforms to provide high-capacity distributed Internet access and unified information technology management, respectively. Ubiquiti and the U logo are trademarks or registered trademarks of Ubiquiti and/or its affiliates in the United States and other countries. For more information, please visit www.ui.com. Safe Harbor for Forward Looking Statements Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact including words such as "look", "will", "anticipate", "believe", "estimate", "expect", "forecast", "consider" and "plan" and statements in the future tense are forward looking statements. The statements in this press release that could be deemed forward-looking statements include the statement regarding our intention to pay quarterly cash dividends, any statement regarding stock repurchases, any statement regarding the cost and availability of components, any statements or assumptions underlying the foregoing, and any statement regarding future events and the future financial performance of Ubiquiti Inc. that involves risks or uncertainties. Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not limited to, the impact of U.S. tariffs on our operations and financial results; the impact of public health problems on results; fluctuations in our operating results; varying demand for our products due to the financial and operating condition of our distributors and their customers, and our distributors’ inventory management practices; political and economic conditions and volatility affecting the stability of business environments, economic growth, currency values, commodity prices and other factors that may influence the ultimate demand for our products in particular geographies or globally; impact of counterfeiting and our ability to contain such impact; our reliance on a limited number of distributors; inability of our contract manufacturers and suppliers to meet our demand; our dependence on chipset suppliers for chipsets without a short-term alternative; as we move into new markets competition from certain of our current or potential competitors who may be more established in such markets; our ability to keep pace with technological and market developments; success and timing of new product introductions by us and the performance of our products generally; our ability to effectively manage the significant increase in our transactional sales volumes; we may become subject to warranty claims, product liability and product recalls; that a majority of our sales are into countries outside the United States and we are subject to numerous U.S. export control and economic sanctions laws; costs related to responding to government inquiries related to regulatory compliance; our reliance on certain key members of our management team, including our founder and chief executive officer, Robert J. Pera; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; whether the final determination of our income tax liability may be materially different from our income tax provisions; the impact of any intellectual property litigation and claims for indemnification; litigation related to U.S. securities laws; and social, economic and political conditions in the United States and abroad, including the impact of the military conflict between Russia and Ukraine and the tension between China and Taiwan. We discuss these risks in greater detail under the heading "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended June 30, 2026, and subsequent filings filed with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC’s website at www.sec.gov. Copies may also be obtained by contacting the Ubiquiti Inc. Investor Relations Department, by email at [email protected] or by visiting the Investor Relations section of the Ubiquiti Inc. website, https://ir.ui.com/. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date made. Except as required by law, Ubiquiti Inc. undertakes no obligation to update information contained herein. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect. Use of Non-GAAP Financial Information To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use non-GAAP measures of net income and earnings per diluted share that are adjusted to exclude certain costs, expenses and gains such as share-based compensation expense, and the tax effects of these non-GAAP adjustments and the deferred tax benefit from intercompany intangibles realignment transaction. Reconciliations of the adjustments to GAAP results for the periods presented are provided above. In addition, an explanation of the ways in which management uses non-GAAP financial information to evaluate its business, the substance behind management’s decision to use this non-GAAP financial information, material limitations associated with the use of non-GAAP financial information, the manner in which management compensates for those limitations, and the substantive reasons management believes that this non-GAAP financial information provides useful information to investors is included under the paragraphs below. Usefulness of Non-GAAP Financial Information to Investors We believe that the presentation of non-GAAP net income and non-GAAP earnings per diluted share provides important supplemental information regarding non-cash expenses, significant items that we believe are important to understanding our financial, and business trends relating to our financial condition and results of operations. Non-GAAP net income and non-GAAP earnings per diluted share are among the primary indicators used by management as a basis for planning and forecasting future periods and by management and our board of directors to determine whether our operating performance has met specified targets and thresholds. Management uses non-GAAP net income and non-GAAP earnings per diluted share when evaluating operating performance because it believes that the exclusion of the items described below, for which the amounts or timing may vary significantly depending upon the Company’s activities and other factors, facilitates comparability of the Company’s operating performance from period to period. We have chosen to provide this information to investors so they can analyze our operating results in the same way that management does and use this information in their assessment of our business and the valuation of our Company. About our Non-GAAP Net Income and Non-GAAP Earnings per Diluted Share We compute non-GAAP net income and non-GAAP earnings per diluted share by adjusting GAAP net income and GAAP earnings per diluted share to remove the impact of certain adjustments and the tax effect of those adjustments. Items excluded from net income are: Share-based compensation expense Tax effect of non-GAAP adjustments, applying the principles of ASC 740; and Deferred Tax benefit from intangibles realignment transaction. These non-GAAP measures are not in accordance with, or an alternative to, GAAP and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income or earnings per diluted share prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. For more information on the non-GAAP adjustments, please see the table captioned "Reconciliation of GAAP Net Income to non-GAAP Net Income" included in this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260820253715/en/ Contacts Investor Relations Ubiquiti Inc.Investor [email protected] Ph.1-646-780-7958

Ericsson ERIC reported second-quarter 2026 results, wherein earnings met the Zacks Consensus Estimate, while revenues missed the same. Adjusted earnings were SEK 1.22 (13 cents) per share, in line with the consensus estimate. Revenues were SEK 52.7 billion ($5.62 billion), down 6% year over year and 2.56% below the Zacks Consensus Estimate of $5.77 billion.Organic sales declined 1% year over year primarily due to lower IPR licensing revenues following a non-recurring benefit in the prior-year quarter. However, the company delivered a solid adjusted gross margin of 48.4%, reflecting disciplined execution and improved profitability in its core businesses. Ericsson price-consensus-eps-surprise-chart | Ericsson Quote ERIC generated SEK 52.7 billion ($5.62 billion) in revenues compared with SEK 56.1 billion in the year-ago quarter. Currency headwinds and lower IPR licensing revenues weighed on reported sales, although organic growth remained relatively resilient.Adjusted gross income declined to SEK 25.5 billion ($2.72 billion) from SEK 27 billion a year ago. Nevertheless, the adjusted gross margin improved to 48.4% from 48%, supported by improved margins in Networks and Cloud Software and Services, partly offset by unfavorable currency movements. The Networks segment generated SEK 33 billion ($3.52 billion), down 8% year over year on a reported basis. Organic sales declined 4%, mainly reflecting lower IPR licensing revenues. Excluding IPR licensing, organic sales were broadly stable as growth in North East Asia and South East Asia, Oceania and India partly offset weakness in other regions. The adjusted gross margin improved to 50.4% from 49.5%.Cloud Software and Services revenues increased 3% year over year to SEK 14.7 billion ($1.57 billion). Organic sales rose 5%, driven by growth across all market areas, including higher software demand and core network upgrades. The adjusted gross margin expanded to 44.1% from 43.2%, while adjusted EBIT increased 33% to SEK 1.8 billion ($192 million). Enterprise revenues declined 19% year over year to SEK 4.5 billion ($480 million), primarily reflecting the divestment of iconectiv completed in 2025. On an organic basis, however, sales increased 3%, supported by growth in Global Communications Platform and Enterprise Wireless Solutions.The adjusted gross margin narrowed to 50.9% from 54.9%, reflecting the portfolio change following the divestment and shifts in product mix. The adjusted EBITA loss widened to SEK 0.8 billion ($85 million) from SEK 0.5 billion despite ongoing cost-reduction efforts. The Americas remained Ericsson's largest market, generating SEK 18.8 billion ($2 billion) in sales, down 5% year over year, while organic sales slipped 1%. Europe, Middle East and Africa posted stable reported sales of SEK 16.3 billion ($1.74 billion), with organic growth of 2%, supported by ongoing 5G deployments and core network upgrades.South East Asia, Oceania and India reported SEK 5.4 billion ($576 million) in revenues, down 2% on a reported basis but up 4% organically due to project delivery timing. North East Asia generated SEK 3.7 billion ($395 million) in revenues, with organic growth of 8% driven by stronger deliveries in Japan. Adjusted EBITA totaled SEK 6.9 billion ($736 million), down 7% year over year, while the adjusted EBITA margin remained largely stable at 13.1% compared with 13.2% a year ago. Lower operating expenses resulting from ongoing efficiency initiatives partly offset weaker gross income and currency headwinds.The free cash flow before mergers and acquisitions declined to SEK 0.4 billion ($43 million) from SEK 2.6 billion a year earlier, mainly because of lower earnings and higher inventories ahead of planned third-quarter deliveries. Ericsson ended June 30, 2026, with net cash of SEK 59.8 billion, equivalent to $6.15 billion using the quarter-end exchange rate. During the quarter, the company returned SEK 8.2 billion to shareholders, including SEK 3.2 billion through share repurchases.Management noted that component cost inflation remains a near-term challenge and expects some pressure on Networks' adjusted gross margin during the third quarter due to higher network rollout activity. However, the company believes that its strengthened portfolio and continued investments in AI-driven connectivity position it well to capture growth opportunities. Ericsson currently has a Zacks Rank #4 (Sell).HubSpot HUBS currently sports a Zacks Rank #1 (Strong Buy). It delivered an earnings surprise of 4.97% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.HubSpot continues to witness rising adoption among larger customers as businesses consolidate marketing, sales and service workflows on a unified AI-enabled platform. Management expects platform consolidation and AI adoption trends to remain key long-term growth drivers.Ubiquiti Inc. UI has a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 22.021%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.Corning Incorporated GLW currently carries a Zacks Rank #2. It delivered an earnings surprise of 2.41% in the trailing four quarters.Corning’s competitive strength lies in its focus on innovation. The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver in its Optical Communication segment. Some of its businesses stand to benefit from government regulations. For example, the fiber optic business is a direct beneficiary of the government-mandated bridging of the digital divide across the United States. 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 Ericsson (ERIC) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Ubiquiti Inc. (UI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Jabil, Inc. JBL third-quarter fiscal 2026 results surpassed expectations, driven by robust AI infrastructure demand and broad-based growth across its portfolio. Core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%.Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year. Jabil reported third-quarter fiscal 2026 net revenues of $8.75 billion, up from $7.83 billion in the year-ago quarter. Revenues benefited from strong demand across multiple end markets, particularly AI-related cloud and data center infrastructure programs.Core operating income increased to $504 million from $420 million a year ago. Core diluted earnings per share rose to $3.16 from $2.55, reflecting solid operating execution and margin expansion. On a GAAP basis, diluted earnings per share improved to $2.59 from $2.03. Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote The Intelligent Infrastructure segment remained Jabil’s largest business, contributing 48% of total revenue during the quarter. Segment revenue increased 21% year over year to approximately $4.2 billion, supported by strong demand in capital equipment, cloud and data center infrastructure, as well as networking and communications.Management noted that networking and communications revenue increased more than 50%, aided by a strong networking ramp in India. Segment core operating margin expanded 80 basis points year over year to 6.1%, highlighting favorable mix and execution. Regulated Industries generated revenues of roughly $3.2 billion, representing 36% of total company sales. Revenues increased 4% year over year, driven primarily by stronger-than-expected automotive and transportation demand. Core operating margin improved 10 basis points to 5.6%.Connected Living and Digital Commerce accounted for 16% of revenue. Sales rose 5% year over year to approximately $1.4 billion as consumer-related demand performed better than management’s cautious expectations. The segment delivered a core operating margin of 4.9%. Jabil’s profitability strengthened during the quarter. Core operating margin expanded to 5.8% from 5.4% in the prior-year period, supported by a favorable business mix and disciplined execution across operations. GAAP operating income increased to $445 million from $403 million a year earlier.Cash generation also remained healthy. Net cash provided by operating activities totaled $535 million, while adjusted free cash flow reached $359 million after capital expenditures of $176 million. During the quarter, the company repurchased approximately $291 million of shares under its existing authorization. Management highlighted continued strength in AI infrastructure programs as a major growth catalyst. Jabil now expects AI-related revenue of approximately $13.6 billion in fiscal 2026, up from its prior forecast of $13.1 billion and significantly above the $9 billion generated in fiscal 2025. The company also secured a third hyperscale customer during the quarter, further strengthening its long-term growth prospects.According to management, growth is being supported by capabilities across compute, storage, networking, optics, power, cooling and rack-level integration, while maintaining an asset-light operating model. Encouraged by strong third-quarter execution and healthy demand trends, Jabil raised its fiscal 2026 outlook. The company now expects fiscal 2026 revenues of approximately $35 billion, core operating margin of about 5.8%, core diluted earnings per share of roughly $12.70 and adjusted free cash flow exceeding $1.4 billion.For the fourth quarter of fiscal 2026, management projects revenues between $9.2 billion and $10 billion and core diluted earnings per share of $3.80-$4.20. The outlook reflects continued momentum in Intelligent Infrastructure, particularly AI-related programs, as well as improving trends in automotive and other end markets. JBL currently carries a Zacks Rank #2 (Buy). Ubiquiti Inc. UI currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 22.01%. It offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved Ubiquiti’s visibility for future demand and inventory management techniques.Celestica Inc. CLS carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 3.85%. With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Celestica’s strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.Sanmina Corporation SANM carries a Zacks Rank #2 at present. In the last reported quarter, Sanmina delivered an earnings surprise of 30.58%. Sanmina’s model spans design and engineering through assembly, test, logistics and after-market support, which lets customers work with one partner across the product lifecycle. Vertical integration helps control critical steps, shorten time to volume production and adjust production flows as program needs change. 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 Jabil, Inc. (JBL) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report Ubiquiti Inc. (UI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Recently, Ubiquiti Inc. was highlighted by Zacks for a sharp improvement in analyst sentiment, including higher earnings estimates and a top-tier rank, after a prior period of selling pressure. What stands out is that Ubiquiti is now flagged as a growth-focused name, with strong cash flow trends and upgraded earnings expectations supporting a more constructive analyst view. We’ll now examine how this shift in analyst earnings expectations could influence Ubiquiti’s broader investment narrative and risk-reward profile. Explore 29 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own Ubiquiti, you need to be comfortable with a high-quality, high‑margin networking business that can still be very volatile in the market. The core story hinges on sustained demand for its wireless and routing gear, strong profitability metrics like an outstanding return on equity, and a willingness to return cash through a growing US$0.80 quarterly dividend. The recent Zacks callout, following a roughly 43% pullback over the month, matters mainly because it reframes the short term: upgraded earnings estimates and a growth label could support sentiment around near‑term earnings releases and dividend continuity, rather than changing the underlying thesis. At the same time, concerns about valuation, heavy reliance on cash‑rich results, and governance questions around a long‑tenured board do not disappear just because analyst expectations have turned more positive. However, one key risk around earnings quality and valuation is easy to underestimate at first glance. Ubiquiti's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price. Across 11 fair value estimates from the Simply Wall St Community, views run from around US$240 to well above US$1,500 per share, underscoring how differently people see Ubiquiti’s upside. Set that against the recent analyst upgrades after a sharp price pullback and you can see why understanding both the growth catalysts and the earnings‑quality concerns is crucial before forming your own view. Explore 11 other fair value estimates on Ubiquiti - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Ubiquiti research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Ubiquiti research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ubiquiti's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Outshine the giants: these 13 early-stage AI stocks could fund your retirement. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 32 best rare earth metal stocks of the very few that mine this essential strategic resource. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Investors were disappointed with Ubiquiti Inc.'s (NYSE:UI) earnings, despite the strong profit numbers. We did some digging and found some worrying underlying problems. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to March 2026, Ubiquiti recorded an accrual ratio of 0.28. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing. In fact, it had free cash flow of US$741m in the last year, which was a lot less than its statutory profit of US$942.1m. Notably Ubiquiti's free cash flow was stable over the last year. The good news for shareholders is that Ubiquiti's accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. Shareholders should look for improved cashflow relative to profit in the current year, if that is indeed the case. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Ubiquiti didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal. Because of this, we think that it may be that Ubiquiti's statutory profits are better than its underlying earnings power. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing Ubiquiti at this point in time. Case in point: We've spotted 1 warning sign for Ubiquiti you should be aware of. Today we've zoomed in on a single data point to better understand the nature of Ubiquiti's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Ubiquiti Inc. (NYSE:UI) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasts. Ubiquiti missed analyst forecasts, with revenues of US$788m and statutory earnings per share (EPS) of US$3.86, falling short by 3.2% and 2.1% respectively. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, the current consensus from Ubiquiti's sole analyst is for revenues of US$3.69b in 2027. This would reflect a solid 19% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 19% to US$18.48. Before this earnings report, the analyst had been forecasting revenues of US$3.74b and earnings per share (EPS) of US$19.16 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a minor downgrade to their earnings per share forecasts. View our latest analysis for Ubiquiti Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 9.6% to US$826, suggesting the revised estimates are not indicative of a weaker long-term future for the business. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Ubiquiti's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 11% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ubiquiti is expected to grow at about the same rate as the wider industry. The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving. With that in mind, we wouldn't be too quick to come to a conclusion on Ubiquiti. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here. You still need to take note of risks, for example - Ubiquiti has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.