Ubiquiti Inc. shares rise over 20% after Q4 results beat estimates, currently trading at $467.77

Ubiquiti Inc. shares rise over 20% after Q4 results beat estimates, currently trading at $467.77

Ubiquiti Inc. (NYSE:UI) has seen its stock price rise significantly, reaching a new high of $467.77, after the company reported its fiscal fourth-quarter results that exceeded market expectations. The networking technology company's shares surged by over 20% in premarket trading on Friday, August 22, 2025, following the release of its financial performance for the quarter ended June 30, 2025. This premarket surge aligns with historical patterns observed during similar earnings beats, where UI has demonstrated a 50% probability of positive returns within 30 days of such events, according to backtested data. The maximum observed return during this period reached 17.01%, underscoring the stock’s potential for short-term gains following strong earnings reports.



Key highlights from the report include a 49.6% year-over-year increase in revenue to $759.2 million, which significantly surpassed analyst estimates of $517.36 million. Operating margin and GAAP net income also surged, driven by higher gross margins and a one-time tax benefit. The company's adjusted earnings per share (EPS) reached $3.54, compared to an estimate of $2.14.



Ubiquiti's Enterprise Technology segment, which includes products for enterprise networking and internet service providers, was the primary driver of growth, with revenue increasing by 57.6% compared to the fourth quarter of fiscal 2024. The Service Provider Technology segment saw a more modest increase of 2.7%. Gross margin improved to 45.1%, reflecting a favorable product mix and lower inventory and shipping expenses, although higher tariffs continued to impact profitability.



The company also announced a new $500 million share repurchase program and reaffirmed its quarterly dividend of $0.80 per share. This capital allocation strategy underscores Ubiquiti's commitment to returning value to shareholders.



Looking ahead, investors will need to closely monitor the company's ongoing expenses, gross margin stability, and the impact of tariffs on profitability. Management did not provide forward guidance for fiscal 2026, but the company's strong performance in the fourth quarter suggests a solid foundation for future growth.



References:

[1] https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/34328107/ubiquiti-revenue-jumps-50-in-fiscal-q4/

[2] https://seekingalpha.com/news/4488296-ubiquiti-surges-as-q4-results-top-estimates-boosts-buyback-program-by-500m