The quarter cleared both published expectations and management’s own targets. Q4 revenue of $338.6 million exceeded published consensus of roughly $332.5 million and the prior $330 million–$335 million outlook. Non-GAAP EPS of $0.32 beat the published $0.29 consensus and topped the company’s $0.28–$0.30 range. The beat was supported by a 40-basis-point year-over-year improvement in non-GAAP gross margin and a 50-basis-point rise in non-GAAP operating margin—not just higher sales. (Fiscal Q4 and Full Year 2026 Financial Results; Non-GAAP Operating Margin)
| Metric | Reported / guided | Comparison | What it says |
|---|---|---|---|
| Q4 revenue | $338.6M | $307.0M year ago; published consensus ~$332.5M | Beat by about $6.1M (Fiscal Q4 and Full Year 2026 Financial Results) |
| Q4 non-GAAP EPS | $0.32 | $0.25 year ago; published consensus $0.29 | Beat by $0.03 (Non-GAAP Net Income) |
| Q4 non-GAAP operating margin | 15.7% | 15.2% year ago and last quarter | Incremental operating leverage (Non-GAAP Operating Margin) |
| FY26 revenue | $1.284B | $1.140B year ago; prior outlook $1.275B–$1.280B | Finished above the prior range (Fiscal Q4 and Full Year 2026 Financial Results) |
| FY26 non-GAAP EPS | $1.06 | $0.84 year ago; prior outlook $1.02–$1.04 | Finished above the prior range (Non-GAAP Net Income) |
| FY27 revenue outlook | $1.380B–$1.400B | FY26: $1.284B; published consensus ~$1.40B | Midpoint implies about 8% growth, with consensus reached only at the high end (FY27 Guidance) |
| FY27 non-GAAP EPS outlook | $1.28–$1.33 | FY26: $1.06; published consensus ~$1.33 | Strong year-over-year earnings growth, but consensus is reached only at the high end (FY27 Guidance) |
| FY26 free cash flow | $95.3M | $127.3M year ago | Cash conversion weakened despite higher earnings (Free Cash Flow) |
The forward setup is the restraint. FY27 guidance calls for higher profitability—non-GAAP operating margin of 16.7%–17.1%, versus 14.8% in FY26—but its revenue and EPS ranges sit modestly below consensus at their midpoints. Q1 guidance is similarly cautious: $334 million–$339 million of revenue and $0.27–$0.29 non-GAAP EPS, putting the published $0.29 EPS expectation at the top of the range. That makes the report more than a routine beat, but not an unambiguous upgrade to the market’s full-year assumptions. (FY27 Guidance; FQ1'27 Guidance)
Recurring-software momentum remains a genuine positive, though it did not accelerate. SaaS ARR reached $244.3 million, up 17.7% year over year, while Platform ONE represented more than 30% of fiscal-year subscription bookings. Product revenue rose 13.9% in Q4, faster than subscription-and-support revenue’s 4.3% growth, so the near-term outperformance remains more hardware-led than recurring-revenue-led. (Fiscal Fourth Quarter Results; Fiscal Q4 and Full Year 2026 Financial Results)
Cash flow is the counterweight to the earnings progress. Full-year free cash flow declined 25% to $95.3 million, even as non-GAAP net income increased to $143.1 million; working-capital uses, especially receivables and other assets, absorbed cash. The balance sheet still showed $46.8 million of net cash at year-end, and the new $500 million revolving facility replaced prior borrowings after quarter-end, improving liquidity flexibility. (Free Cash Flow; Condensed Consolidated Statements of Cash Flows; Liquidity)
Read the original 8-K on SEC EDGAR ↗