FatPipe 2026 Q1 Earnings Strong Performance as Net Income Rises 21.7%

FatPipe (FATN) reported its fiscal 2026 Q1 earnings on Jul 30th, 2025. The company demonstrated a strong performance with a 21.7% increase in net income, setting a new record high for fiscal Q1 net income in the past two years. Results exceeded expectations, driven by innovative solutions and strategic partnerships. FatPipe maintained its EPS at $0.05, consistent with previous quarters. The company maintained its guidance, anticipating revenue to reach approximately $4 million and EPS to remain at $0.05 in the upcoming quarters. Management expects favorable market conditions to support future performance.

Revenue
The total revenue of FatPipe increased by 4.9% to $3.94 million in 2026 Q1, up from $3.75 million in 2025 Q1.

Earnings/Net Income
FatPipe maintained stable EPS at $0.05 in 2026 Q1 compared to 2025 Q1. Meanwhile, the company's profitability strengthened with net income of $741,195 in 2026 Q1, marking 21.7% growth from $609,077 in 2025 Q1. Remarkably, in 2026 Q1, the company set a new record high for fiscal Q1 net income, the highest in 2 years. The EPS is considered stable, reflecting consistent performance amidst market challenges.

Price Action
The stock price of FatPipe has edged up 0.57% during the latest trading day, has tumbled 13.94% during the most recent full trading week, and has tumbled 9.74% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing FatPipe (FATN) shares following a quarterly revenue drop on the day of the financial report release and holding them for 30 days has resulted in poor performance over the past three years. This approach yielded a -27.88% return, significantly underperforming the benchmark return of 15.87%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.37, the strategy indicated high risk, compounded by elevated volatility at 179.74%. The data suggests that investors might reconsider this strategy due to its historical underperformance and associated risks.

CEO Commentary
FatPipe's CEO emphasized the company's resilience despite facing significant market challenges, noting that the ongoing investment in innovative solutions has been a key driver for performance. The CEO highlighted the successful launch of new products that have strengthened market positioning and increased customer satisfaction. Additionally, they acknowledged the importance of strategic partnerships in enhancing operational efficiency and expanding reach. The tone of the commentary was cautiously optimistic, reflecting a commitment to navigate current obstacles while remaining focused on long-term growth objectives.

Guidance
For the upcoming quarters, FatPipe anticipates revenue to reach approximately $4 million, with an expected EPS of $0.05. The company aims to maintain a disciplined approach to capital expenditures, projecting ongoing investments in technology and product development to support growth. Management expressed confidence in achieving these targets, citing a robust pipeline and favorable market conditions as key contributors to future performance.

Additional News
FatPipe recently announced the launch of its VeloCloud Replacement Program, aimed at transitioning enterprises from legacy VeloCloud SD-WAN deployments to its advanced platform. This strategic initiative includes zero-cost migration assistance and trade-in discounts. Additionally, FatPipe was honored with the 2025 MSP Today Product of the Year Award for its Total Security 360 product, showcasing its innovation in cybersecurity. The company also announced key executive appointments following its Nasdaq listing, including Tom Aufiero as SVP of Sales, Cybersecurity, and Eric Sherb as CFO, to support its global expansion efforts.