Ubiquiti Reports Record FY2026: Revenue Up 27%, Net Income Up 35%, Dividend Raised to $1.00
UI sits 53% above its 52-week low of $380 on elevated volume (2.6× avg).
Summary
Ubiquiti posted record fiscal 2026 results with 27% revenue growth and 35% net income growth, raised its dividend to $1.00 per share, and extended its buyback program. The filing also discloses three new patent lawsuits and ongoing tax disputes.
Key Events · Earnings and Guidance · UI
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Record FY2026 Revenue and Profit
Revenue reached $3.27 billion, up 27% year-over-year, while net income grew 35% to $960.3 million. Gross margin improved to 46% from 43%.
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Dividend Increased 25%
Quarterly dividend raised to $1.00 per share from $0.80, payable September 8, 2026. The company intends to pay at least $1.00 per share each remaining quarter of fiscal 2027.
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Buyback Program Extended
The $500 million stock repurchase program, originally expiring September 30, 2026, was extended to September 30, 2027. No shares were repurchased during fiscal 2026.
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New Patent Litigation Threats
Three new patent infringement lawsuits were filed against Ubiquiti, including an ITC complaint by AX Wireless seeking a U.S. import ban on certain Wi-Fi 6 products. The company cannot estimate potential losses.
Analysis · UI · Manufacturing
Ubiquiti delivered a standout fiscal 2026 with revenue climbing 27% to $3.27 billion and net income surging 35% to $960.3 million. Gross margin expanded to 46% from 43%, driven by favorable product mix and lower indirect costs despite higher tariffs. The company also raised its quarterly dividend by 25% to $1.00 per share and extended its $500 million buyback program through September 2027. However, the filing reveals three new patent infringement lawsuits targeting Wi-Fi 6 technology, including an ITC action that could lead to a U.S. import ban on certain products. An ongoing IRS dispute over fiscal 2015-2016 taxes carries a potential $50 million liability, and a Hong Kong tax audit has $60.3 million tied up in deposits. The balance sheet is strong with $611 million in cash and investments and no outstanding debt after repaying the term loan, replaced by a new $250 million revolving facility.
At the time of this filing, UI was trading at $581.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $34.7B. The 52-week trading range was $380.00 to $1,099.99. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.