Digi International (NASDAQ:DGII) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Digi International (NASDAQ:DGII) announced its earnings results on Wednesday. The technology company reported $0.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.02, reports. Digi International had a net margin of 9.63% and a return on equity of 12.16%. The company had revenue of $143.00 million during the quarter, compared to analyst estimates of $140.27 million. During the same period in the previous year, the business earned $0.26 earnings per share. The firm’s quarterly revenue was up 25.3% compared to the same quarter last year. Digi International updated its Q1 2027 guidance to 0.710-0.750 EPS.

Here are the key takeaways from Digi International’s conference call:

• Digi reported record quarterly and full-year revenue, ARR, and adjusted EBITDA for fiscal 2026. Full-year revenue grew 24%, and management said operating leverage improved as operating expenses declined as a share of revenue.
• For fiscal 2027, Digi expects ARR growth of at least 15%, revenue growth of 10%–15%, and profit growth of 12.5%–17.5%; guidance includes the pending Disruptive Technologies acquisition. Management expects to reach its $200 million ARR goal in 2027, a year ahead of plan.
• Digi plans to acquire Disruptive Technologies for $130 million in cash, subject to regulatory approval, and expects the deal to add $9 million in adjusted EBITDA in fiscal 2028. The company intends to gradually shift the sensor business toward subscriptions, while noting that fiscal 2027 will be a transition year.
• Management cited supply-chain allocation and cost pressures, especially for memory and other components, as ongoing challenges; it is planning further ahead and selectively considering price increases. It expects gross margins to remain in the low-to-mid-60% range and said first-quarter adjusted EBITDA may decline sequentially partly due to margin mix and seasonality.
• Management said the opportunity pipeline is at its highest level to date and up double digits, with deal progression improving year over year. It also described broad-based Opengear growth, though a potential hyperscaler win remains uncertain.

Digi International Price Performance

NASDAQ DGII opened at $66.96 on Thursday. The stock has a market capitalization of $2.54 billion, a price-to-earnings ratio of 31.27 and a beta of 1.00. Digi International has a 1-year low of $35.15 and a 1-year high of $86.84. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.13 and a quick ratio of 0.78. The business’s fifty day moving average price is $72.53 and its 200-day moving average price is $63.89.

Digi International News Roundup

Investors following DGII have been watching these news items:

• Positive Sentiment: For fiscal Q4, revenue rose 25% year over year to $143 million, and adjusted EPS of $0.78 beat the $0.76 consensus estimate, up from $0.56 a year earlier. Zacks earnings coverage
• Positive Sentiment: Digi’s fiscal 2027 revenue guidance of $588.7 million–$615.5 million is above the $579 million consensus, signaling expectations for continued growth. RTTNews outlook coverage
• Neutral Sentiment: First-quarter fiscal 2027 guidance was broadly in line with estimates: revenue of $140 million–$144 million versus $140.5 million expected, and EPS of $0.71–$0.75 versus $0.72 expected. Digi International results release

Analyst Upgrades and Downgrades

A number of brokerages have commented on DGII. Weiss Ratings cut shares of Digi International from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday. B. Riley Financial upped their price objective on shares of Digi International from $78.00 to $86.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Zacks Research lowered shares of Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Piper Sandler raised their target price on Digi International from $63.00 to $76.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Finally, Roth Capital set a $90.00 price target on Digi International and gave the company a “buy” rating in a report on Thursday, August 6th. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $82.40.

Digi International Company Profile

Digi International provides products and services for connecting, managing and securing devices used in the Internet of Things (IoT). Its offerings include cellular routers and gateways, embedded modules, console servers and other networking equipment, along with software and services for device management and remote monitoring. The company serves businesses and organizations across industries such as transportation, energy, healthcare, industrial automation and retail. Its solutions support deployments ranging from connected equipment and infrastructure to remote access and network management, with customers in markets around the world.