Ubiquiti Reverses Margin Dip as Revenue Hits a Record

The Tip Desk · November 6, 2026 · 3 min read

The networking maker posted $1,026.2 million of first-quarter fiscal 2027 revenue and a 47.3% GAAP gross margin.

Ubiquiti Inc. (UI) reported first-quarter fiscal 2027 revenue of $1,026.2 million, a 39.9% increase from the year-ago quarter and a 9.5% rise from the immediately preceding period, as both of its product platforms contributed to the gain.

The networking company said the sequential and year-over-year increase was driven by higher revenue from both Enterprise Technology and Service Provider Technology. Enterprise Technology, the larger of the two, generated $941.3 million, up from $868.3 million in the prior quarter and $657.1 million a year earlier. Service Provider Technology contributed $84.9 million.

GAAP diluted earnings were $5.29 a share, compared with $3.43 a year earlier. Non-GAAP diluted earnings were $5.32 a share. GAAP net income was $320.5 million, up 54.2% from the year-ago quarter; non-GAAP net income was $322.0 million. The company said higher revenues and increased gross profit were the primary factors behind the earnings growth.

Gross profit was $485.3 million, and the GAAP gross profit margin was 47.3%, reversing a 1.2-point sequential decline in the fourth quarter of fiscal 2026, when the margin had been 45.8%. The company said the margin increase versus both the prior quarter and the year-ago period was primarily driven by lower indirect costs, offset in part by higher component costs.

Since the fourth quarter of fiscal 2026, Ubiquiti said it has experienced an increase in certain component costs. It said component costs may continue to rise and availability may remain constrained, and that those factors may result in near-term pressure on gross profit margins, particularly to the extent it is unable to offset higher component costs through pricing or other measures. It also said ongoing supply constraints could limit its ability to meet customer demand and negatively impact revenues and gross profit margins.

Research and development expenses were $53.2 million, essentially unchanged from $53.0 million in the prior quarter. Sales, general and administrative expenses were $40.6 million, up from $36.3 million. The company attributed the sequential SG&A increase primarily to higher professional fees and a provision for credit losses on accounts receivable, offset in part by lower marketing expenses.

Interest income (expense) and other, net was $6.2 million of income, up from $3.1 million of income in the prior quarter. The company said the increase was primarily driven by higher interest income on invested cash.

North America remained the largest geographic market, with $541.7 million of revenue. Europe, the Middle East and Africa contributed $378.1 million. Asia Pacific contributed $67.1 million and South America $39.3 million.

The board declared a $1.00 per share cash dividend payable on November 23, 2026, to shareholders of record at the close of business on November 16, 2026. That follows the company’s stated intent to pay regular quarterly cash dividends of at least $1.00 per share during each quarter of fiscal 2027, subject to the board’s review each quarter.