Q4 FY2026
Filed Aug 21, 2026Ubiquiti reported record fourth-quarter fiscal 2026 revenues of $937.3 million, GAAP diluted EPS of $4.70, and non-GAAP diluted EPS of $4.73.
Revenue increased 18.9% sequentially and 23.5% year over year, led by Enterprise Technology. GAAP operating income reached $340.0 million and GAAP net income was $284.9 million, although GAAP gross margin declined sequentially to 45.8% amid higher component and shipping costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $937.3 million | 18.9% increase | 23.5% increase |
| Cost of revenuesGAAP | $508.1 million | – | – |
| Gross profitGAAP | $429.3 million | – | – |
| Gross marginGAAP | 45.8% | decreased by 1.2% | increased by 0.7% |
| Research and development expensesGAAP | $53.0 million | – | – |
| Sales, general and administrative expensesGAAP | $36.3 million | – | – |
| Total operating expensesGAAP | $89.3 million | – | – |
| Income from operationsGAAP | $340.0 million | – | – |
| Interest (income) expense and other, netGAAP | $3.1 million income | – | – |
| Income before income taxesGAAP | $343.1 million | – | – |
| Provision (Benefit) for income taxesGAAP | $58.2 million provision | – | – |
| Net incomeGAAP | $284.9 million | – | 6.8% increase |
| Diluted EPSGAAP | $4.70 | – | 6.6% increase |
| Basic EPSGAAP | $4.71 | – | – |
| Non-GAAP net incomenon-GAAP | $286.5 million | – | 33.6% increase |
| Non-GAAP diluted EPSnon-GAAP | $4.73 | – | 33.6% increase |
| Weighted average diluted sharesother | 60,575 | – | – |
| Weighted average basic sharesother | 60,522 | – | – |
| Full fiscal 2026 total revenuesGAAP | $3.3 billion | – | 27.2% increase |
| Full fiscal 2026 gross profitGAAP | $1,511.4 million | – | – |
| Full fiscal 2026 gross marginGAAP | 46.2% | – | increased by 2.8% |
| Full fiscal 2026 total operating expensesGAAP | $325.9 million | – | – |
| Full fiscal 2026 income from operationsGAAP | $1,185.4 million | – | – |
| Full fiscal 2026 net incomeGAAP | $960.3 million | – | – |
| Full fiscal 2026 diluted EPSGAAP | $15.85 | – | – |
| Full fiscal 2026 non-GAAP net incomenon-GAAP | $966.0 million | – | – |
| Full fiscal 2026 non-GAAP diluted EPSnon-GAAP | $15.95 | – | – |
| North America revenueother | $507.4 million | – | – |
| Europe, the Middle East and Africa revenueother | $331.6 million | – | – |
| Asia Pacific revenueother | $69.4 million | – | – |
| South America revenueother | $28.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Enterprise TechnologyRevenue growth over the prior quarter and comparable prior-year period was driven by increased revenue from the Enterprise Technology platform. | $868.3 million | – | – |
| Service Provider TechnologyThe increase in total revenue was offset in part by decreased revenue from the Service Provider Technology platform. | $69.0 million | – | – |
Capital returns
- 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, subject to final determination by the Board each quarter.
- The Company extended the expiration date of its previously announced stock repurchase program, authorizing repurchases of up to $500 million of common stock through September 30, 2027.
What drove it
- Fourth-quarter revenue growth was driven by Enterprise Technology, partly offset by lower Service Provider Technology revenue.
- Sequential gross-margin decline was primarily driven by higher component costs and higher shipping costs, partly offset by lower other indirect costs.
- Year-over-year gross-margin improvement was primarily driven by lower other indirect costs, partly offset by unfavorable product mix, higher shipping costs, and higher component costs.
- Sequential R&D expense growth was primarily driven by higher prototype-related and software expenses, partly offset by lower employee-related expenses.
- Sequential SG&A growth was primarily attributable to higher professional fees, credit card processing fees associated with incremental webstore sales, employee-related expenses, and marketing expenses.
- Fourth-quarter I&O improved to income from expense due to higher interest income and lower interest expense, driven by decreased outstanding debt, as well as lower foreign exchange losses.
Concerns
- The Company experienced increased costs for certain components during the fourth quarter.
- Component costs may continue to rise and availability may remain constrained.
- The Company said higher component costs could create near-term pressure on gross profit margins if not offset through pricing or other measures.
- Ongoing supply constraints could limit the ability to meet customer demand and negatively affect revenue and gross profit margins.
- Service Provider Technology revenue declined and partially offset Enterprise Technology growth.
- Fourth-quarter gross margin decreased sequentially to 45.8% from 47.0%.
What to watch
- Whether component-cost inflation, shipping costs, and supply availability create further gross-margin pressure.
- The trajectory of Enterprise Technology growth and whether Service Provider Technology revenue remains a drag on total growth.
- The Company's ability to offset higher component costs through pricing or other measures.
- Execution of the intended quarterly dividends of at least $1.00 per share during fiscal 2027, subject to Board approval.
- Use of the stock repurchase authorization of up to $500 million through September 30, 2027.
Balance sheet and cash flow
- No cash balance, debt balance, operating cash flow, free cash flow, or repurchase activity during the quarter was reported.
- The Company stated that outstanding debt decreased, contributing to higher interest income and lower interest expense.
Analysis
Ubiquiti delivered record fourth-quarter revenue of $937.3 million, up 18.9% from the prior quarter and 23.5% from the comparable prior-year period. The reported growth was driven by Enterprise Technology, which generated $868.3 million of revenue, while Service Provider Technology revenue was $69.0 million and declined. North America revenue was $507.4 million, Europe, the Middle East and Africa revenue was $331.6 million, Asia Pacific revenue was $69.4 million, and South America revenue was $28.9 million.
Profitability remained substantial despite a sequential gross-margin step-down. GAAP gross profit was $429.3 million and gross margin was 45.8%, down from 47.0% in the prior quarter but above 45.1% a year earlier. Management attributed the sequential margin decline primarily to higher component and shipping costs, partially offset by lower other indirect costs. It also disclosed that certain component costs increased during the quarter and that constrained availability may persist, creating potential near-term pressure on margins and the ability to meet demand.
Operating leverage remained evident in absolute profit dollars. GAAP income from operations was $340.0 million, GAAP net income was $284.9 million, and GAAP diluted EPS was $4.70. Non-GAAP net income was $286.5 million and non-GAAP diluted EPS was $4.73. R&D expense rose to $53.0 million on higher prototype-related and software expenses, while SG&A rose to $36.3 million, reflecting professional fees, webstore-related credit card processing costs, employee-related expenses, and marketing. Interest and other moved to $3.1 million of income, compared with expense in both the prior quarter and prior-year period.
For the full fiscal year, revenue was $3.3 billion, up 27.2%, with GAAP gross margin of 46.2%, GAAP net income of $960.3 million, and GAAP diluted EPS of $15.85. Full-year non-GAAP diluted EPS was $15.95. Capital-return actions included a declared $1.00 per share dividend, an intention to pay regular quarterly dividends of at least $1.00 per share in fiscal 2027 subject to Board approval, and an extension of the authorization to repurchase up to $500 million of common stock through September 30, 2027. The filing did not provide quantitative operating guidance.
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, EPS, or cash flow
- Prior-quarter outlook guidance for comparison
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Quarterly share repurchases or dollars spent on repurchases
- Quantitative segment growth rates for Enterprise Technology and Service Provider Technology
- Named-executive earnings commentary or attributable executive quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.