Ubiquiti Inc. (UI) · Nov 6, 2026 · Earnings
Beat — Non-GAAP EPS $5.32 vs ~$4.25 consensus
Ubiquiti’s earnings beat expectations decisively, with revenue topping $1 billion and gross margin expanding despite rising component costs.
Ubiquiti is scaling its UniFi-led enterprise networking platform through distributors, webstores, and a global partner base, with Enterprise Technology driving the company’s recent growth. The prior quarter had already established a fast-growth story, but with gross margin under pressure from component costs.
The quarter materially exceeded the market’s bar. Revenue reached $1.026 billion versus a published consensus of roughly $977 million, while non-GAAP diluted EPS was $5.32 versus approximately $4.25 expected. That is a broad beat, not merely a revenue-led result: the company converted the sales upside into substantially higher profit.
| Q1 FY27 | Q1 FY26 | Consensus | |
|---|---|---|---|
| Revenue (Financial Highlights) | $1,026.2M (+39.9%) | $733.8M | $977.5M |
| Gross margin (Income statement highlights) | 47.3% (+1.3 pts) | 46.0% | |
| GAAP diluted EPS (Income statement highlights) | $5.29 (+54.2%) | $3.43 | $4.25 |
| Non-GAAP diluted EPS (Non-GAAP reconciliation) | $5.32 (+53.8%) | $3.46 |
Margins contradicted the immediate concern. Ubiquiti warned that higher component costs and constrained availability could pressure profitability, yet gross margin rose to 47.3% from 45.8% sequentially and 46.0% year over year. 〔0〕 That suggests pricing, product mix, or operating leverage more than offset the cost headwind this quarter.
The main caveat is forward visibility, not current execution. Component costs have risen since the prior quarter, and the company says further increases or supply constraints could eventually limit margins or sales. 〔1〕 SG&A also rose to $40.6 million from $36.3 million sequentially, partly because of higher professional fees and credit-loss provisions, but that increase did not prevent operating income and EPS from substantially beating expectations.
Bottom line: This strengthens Ubiquiti’s existing growth story rather than merely confirming it. The surprise is that demand scaled past $1 billion while profitability improved despite the supply-cost risk the company had flagged.
Q2 fiscal 2027 earnings report
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