Digi International (DGII) News Today

Digi International Inc. (NASDAQ: DGII) shares declined after its fiscal fourth-quarter results beat estimates, as investors focused instead on a less encouraging growth and outlook picture. Concerns about near-term margins and acquisition-related risk also weighed on sentiment.

• Positive Sentiment: Fiscal Q4 adjusted EPS was $0.78, above the $0.76 consensus, while revenue of $143.32 million also topped estimates and rose 25.3% year over year. Digi reported higher quarterly profit and raised its fiscal 2027 outlook. Digi International Surpasses Q4 Earnings and Revenue Estimates
• Neutral Sentiment: Piper Sandler cut its price target to $67 from $76 and maintained a “neutral” rating. The revised target still implies potential upside from the price cited in the report, but the downgrade in target reflects more cautious expectations. Piper Sandler Stock Recommendations
• Negative Sentiment: Despite the Q4 beat, investors reacted negatively to the fiscal 2027 outlook, which was viewed as signaling slower growth than hoped. Reports also pointed to near-term margin pressure and risks tied to acquisitions, helping explain the sharp post-earnings selloff. Digi International Q4 2026: Strong Beat, but Slower Growth Ahead ARR Acceleration and Record Revenue Mask Margin Pressures and Acquisition Risk