Ubiquiti shares jump 15% after enterprise demand lifts revenue

Ubiquiti Inc. (UI) shares rose 15.4% at 3:59 p.m. ET, from a $514.20 close.

Ubiquiti Inc. (UI) reported record revenue of $1.03 billion for the first quarter of fiscal 2027, up 39.9% from a year earlier. GAAP net income rose 54.2% to $320.5 million.

Here's how the company did:

• Revenue: $1.03 billion vs. $733.8 million a year earlier
• Non-GAAP EPS: $5.32 vs. $3.46 a year earlier
• GAAP EPS: $5.29 vs. $3.43 a year earlier

Revenue also rose 9.5% from $937.3 million in the fourth quarter of fiscal 2026.

Segment results

Enterprise Technology revenue was $941.3 million, up from $657.1 million a year earlier. Service Provider Technology revenue was $84.9 million, up from $76.6 million.

Margins and costs

GAAP gross profit was $485.3 million, and gross margin reached 47.3%. That compares with 45.8% in the prior quarter and 46.0% a year earlier. Lower indirect costs drove the improvement, partly offset by higher component costs.

Research and development expenses were $53.2 million, up from $48.5 million a year earlier. Sales, general and administrative expenses were $40.6 million, up from $27.1 million. Income from operations was $391.5 million, compared with $261.7 million a year earlier.

Outlook and capital returns

Component costs may keep rising and availability may stay constrained, which could pressure gross margins if higher costs cannot be offset through pricing or other measures.

The board declared a $1.00 per share cash dividend, payable Nov. 23 to shareholders of record on Nov. 16.

Net income has risen in each of the last three quarters, from $207.9 million in the first quarter of fiscal 2026 to $284.9 million in the fourth quarter.