Zacks Highlights Cisco, Extreme Networks, and Digi International Amid Networking Industry Headwinds

Industry
โดย Zacks Investment Research·Read original
Summary · why it matters

Zacks Equity Research has identified Cisco Systems, Extreme Networks, and Digi International as stocks to consider within the computer networking industry, which faces near-term headwinds from cautious IT spending and fierce competition but is expected to benefit long-term from AI-driven infrastructure upgrades. The Zacks Computer-Networking industry has gained 67.4% over the past year, outperforming the S&P 500's 18.4% rise, though it currently trades at a forward price-to-earnings ratio of 28.78, above the broader market. Cisco is seeing strong AI infrastructure demand, with hyperscaler AI orders reaching $1.9 billion in its fiscal third quarter and full-year expectations raised to $9 billion in orders and about $4 billion in revenues. Extreme Networks reported 11% revenue growth in its fiscal third quarter, driven by its Platform ONE launch and a 29% increase in SaaS annual recurring revenue to $236 million. Digi International expects annual recurring revenue to grow 25% in fiscal 2026 to around $190 million and recently introduced an AI network operations agent called DANI.

Impact on stocks 3

Artificial Intelligence▲ · 1 stocks
Cisco Systems Inc
CSCO
▲ PositiveDemandrelevance

Strong AI infrastructure demand with $1.9B hyperscaler AI orders and raised full-year expectations to $9B orders and $4B revenues.

Information Technology▲ · 1 stocks
Digi International Inc
DGII
▲ PositiveTechnologyrelevance

Introduced AI network operations agent DANI and expects 25% ARR growth in fiscal 2026.

Cybersecurity & Digital Trust▲ · 1 stocks
Extreme Networks Inc
EXTR
▲ PositiveTechnologyrelevance

11% revenue growth driven by Platform ONE launch and 29% increase in SaaS ARR to $236M.

Theme Impact 3

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