Oct 28, 2026 earnings call — Guidance raised on Platform 1 growth
Company raised expectations to 10% growth for both the second quarter and full year of fiscal 2027.
Revenue $0.3B (est $0.3B) · EPS $0.33 (est $0.28) · Next-quarter revenue outlook $0.3B
Key quotes
"Platform 1 adoption is accelerating as a result of continued innovation and now accounts for over half of our subscription bookings."
"Agent 1 coworker our next generation AI agent, reached all Platform 1 customers in early September and drove a 10x adoption rate over the first generation."
"Our components are secured through calendar 2027 while our competitors are quoting extended lead times."
Analyst Q&A 5
memory supply and gross margin
Q (Ryan Koontz · Needham and Co.): Analyst asked how memory availability and strategy affect gross margin and costs going forward. He asked if pricing can offset higher memory costs.
A: Management said they turned constrained memory into an advantage and that they have full supply into fiscal 28. They said the higher cost of memory is already built into the reported gross margin and the guide, and pricing actions give room to offset costs.
"And the higher cost of memory is built into the gross margin that we just reported and our guide." — Edward Meyercord (CEO)
Platform 1 adoption and monetization
Q (Michael Genovese · Rosenblatt): Analyst asked how many customers will be on Platform 1 by the end of fiscal 27 and how much adoption is from new logos versus existing customers. He also asked how Agent 1, Coworker and exchange zones will be monetized.
A: Management said they expect over half of customers on Platform 1 by the end of the fiscal year and about 80% the following year. They said Coworker is included in the subscription and always-on, while future operator mode will introduce token-based "agent actions" as a new revenue stream and enable new non-network use cases.
"By the end of this year, we expect half of our customers to be on the platform." — Edward Meyercord (CEO)
big deals and why customers switch
Q (Eric Martinuzzi · Lake Street): Analyst asked for an update on million-dollar-plus deals in the funnel and why a specific Austrian bank left and then returned to Extreme.
A: Management said the large-deal funnel is up, now over 20% growth depending on period, and that million-dollar opportunities are growing. On the bank win, they said it was not so much a simple leave/return but customers are weary of competitors like Cisco, and Extreme’s simpler end-to-end platform and fabric technology makes it more compelling on technology and total cost of ownership.
"So I think when all this gets packaged up, you know, we wind up being, I think, more compelling from a technology perspective and I think from a commercial perspective, lot more attractive as people evaluate total cost of ownership." — Edward Meyercord (CEO)
higher guidance and competitor displacements
Q (Tomer Zilberman · BofA): Analyst asked what changed to allow a guidance raise to 10% and whether the displacement opportunity versus Cisco, HPE, Juniper is the same now.
A: Management said the guidance raise comes from faster adoption of Platform 1 and stronger recurring revenue, plus product funnel strength across 20 pods. They said competitive displacement opportunities remain strong, noting customers see risk in combined portfolios and value Extreme’s best-in-class platform and channel economics versus larger incumbents.
"So, you know, we are we are ahead of plan in terms of the recurring revenue side in terms of the adoption of Platform 1, which has been the big the big driver of growth." — Edward Meyercord (CEO)
missed sales and gross margin target
Q (Dave Kang · B. Riley): Analyst asked whether any Q1 revenue was left on the table and whether the long-term gross margin target remains mid-30s and what will drive it.
A: Management said they do not feel their numbers are constrained and that normal quarter-end shipping issues happen but are not unusual. They said the step-up in recurring revenue and higher-margin Platform 1 subscriptions will drive gross-margin improvement, and component cost reductions plus scale should help margins over time.
"We do not feel our numbers are constrained." — Edward Meyercord (CEO)