Extreme Networks said its Platform ONE offering accounted for more than 30% of subscription bookings during its first year of availability and doubled sequentially in fiscal Q4, giving the networking company a rapidly expanding software platform as it targets a fiscal 2027 non-GAAP operating margin of as much as 17.1%.
Extreme has positioned Platform ONE as a central component of its AI-powered networking strategy. The company is adding advanced security, AI-powered automation and support for third-party solutions as it seeks to make the platform a broader operating layer for enterprise networking environments.
The adoption comes as Extreme closed fiscal 2026 with its sixth consecutive quarter of double-digit revenue growth. Fiscal Q4 revenue increased 10.3% year-over-year and 6.8% sequentially to $338.6 million.
SaaS annual recurring revenue reached $244.3 million, increasing 17.7% from a year earlier and 3.4% sequentially. Non-GAAP diluted EPS increased to $0.32 from $0.25 in the prior-year quarter and $0.26 in fiscal Q3.
Profitability also improved. Q4 GAAP gross margin increased to 62.2% from 61.6%, while non-GAAP gross margin reached 62.7% compared with 62.3% a year earlier. Non-GAAP operating margin increased to 15.7% from 15.2%.
For the full fiscal year, revenue increased 12.6% to approximately $1.284 billion. GAAP EPS moved to positive $0.31 from a $0.06 loss per share, while non-GAAP EPS increased to $1.06 from $0.84.
Extreme also reported that 187 customers ordered more than $1 million of its products and services during fiscal 2026. Management attributed the broader growth to accelerating demand for its AI platform, larger enterprise deployments, competitive wins and product availability.
The company is expanding the automation capabilities attached to that platform. Extreme introduced Agent ONE to move customers from AI-assisted network management toward AI-driven and autonomous operations, while its expanded Wi-Fi 7 portfolio is designed for applications including real-time AI workloads, AR/VR, smart manufacturing and telehealth.
Recent enterprise wins include the University of Technology Sydney, which selected Extreme’s AI-powered wired and wireless platform in what Extreme described as its largest customer win in Australia. A top-10 global retailer also selected Platform ONE to add AI-driven automation to a large retail network.
Extreme enters fiscal 2027 with supply secured into fiscal 2028. Management said targeted pricing actions are offsetting incremental industry supply-chain costs, providing additional visibility into margins while the company continues to expect double-digit product revenue growth.
For fiscal 2027, Extreme expects non-GAAP gross margin of 62.2% to 62.7%, non-GAAP operating margin of 16.7% to 17.1%, and non-GAAP EPS of $1.28 to $1.33. GAAP operating margin is expected to range from 8.4% to 8.9%.
The combination of Platform ONE’s rapid contribution to subscription bookings, continued SaaS ARR growth and a higher operating-margin target gives Extreme a path to expand profitability while shifting more customer spending toward its AI-powered platform.
KEY QUOTES:
“We closed Fiscal 2026 delivering 13% year-over-year revenue growth, and the fourth quarter marked our sixth consecutive quarter of double-digit growth. These results are fueled by accelerating demand for our AI platform, a differentiated portfolio, strong execution, and broad product availability. This quarter further validates the competitive advantages we’ve created through our innovation, nimbleness, and supply chain leadership. We’re winning more competitive deals, expanding with larger enterprises, and gaining share across our target markets. In Fiscal 2026, 187 customers ordered over one million dollars of Extreme solutions.”
“Extreme Platform ONE reached over 30% of our subscription bookings in its first year of availability and doubled quarter-over-quarter in the fourth quarter. Each quarter, we’re adding new features like advanced security, AI-powered automation, and support for third-party solutions. And we’re winning competitive opportunities because customers recognize we’re building the platform they’ll standardize on now and well into the future.”
Ed Meyercord, President and CEO of Extreme Networks
