Extreme Networks (EXTR) Tumbles 15%. Here’s Why

We recently published 10 Stocks Plunging Fast; 5 Now at All-Time Lows. Extreme Networks, Inc. (NASDAQ:EXTR) is one of the worst-performing stocks on Wednesday.

Extreme Networks nosedived by 15.23 percent on Wednesday to finish at $18.73 apiece as investors appeared to have already priced in a strong earnings performance in the first quarter of fiscal year 2026 amid the artificial intelligence boom.

In an updated report, Extreme Networks, Inc. (NASDAQ:EXTR) said it swung to a net income of $5.6 million during the quarter from a $10.5 million net loss in the same period last year.

Total net revenues jumped by 15 percent to $310 million from $269 million year-on-year.

“The strength of our first quarter results was driven by improved execution, increasing customer demand and expanding interest in our AI-powered networking platform and our high-performance solutions,” said Extreme Networks, Inc. (NASDAQ:EXTR) President and CEO Ed Meyercord.

“This marked six consecutive quarters of revenue growth and three straight quarters of double-digit year-over-year gains, which is a positive sign that we are gaining share. ARR (annual recurring revenue) is up 24 percent year-over-year, as momentum grows with our subscription model. Continuing share gains in the Americas along with increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by significant wins this quarter,” he added.

For the second quarter, Extreme Networks, Inc. (NASDAQ:EXTR) is targeting to hit $309 million to $315 million in total net revenues, with earnings per share of $0.03 to $0.06.

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Disclosure: None. This article is originally published at Insider Monkey.