Ubiquiti Networks Inc

According to a new report from Dell'Oro Group, campus switch average selling prices grew 19 percent in the second quarter of 2026, driving the market to positive revenue growth despite component shortages. Every vendor outside China raised campus switch ASPs year-over-year, a direct result of AI-fueled component shortages that increased costs and led to list price increases on nearly all campus switches. Cisco, Arista, Ubiquiti, and Extreme all gained market share year-over-year, with vendors excelling at supply management and redesigns outperforming. Public Cloud-managed switch revenue rebounded and outpaced the total market, while memory shortages are expected to persist into 2027, raising ASPs and causing availability issues. Despite supply headwinds, demand remains strong, with switch refreshes and security concerns acting as growth catalysts, and modular switch form factors have seen unusual growth with smaller ASP increases.

Ubiquiti Inc. reported fiscal third-quarter 2026 revenues of $788.2 million, an 18.7% increase from $664.2 million a year ago, driven by robust demand across its Enterprise Technology portfolio. The Enterprise Technology segment generated $717.9 million in revenues, up 22.6% year over year from $585.7 million, with North America, its largest market, posting $410.2 million in revenues, a 27% increase. The company continues to enhance its UniFi ecosystem and expects the segment to reach $2.83 billion in revenues for fiscal 2026, representing 26% growth. Ubiquiti faces competition from Cisco Systems and Hewlett Packard Enterprise, with Cisco reporting 12% total revenue growth and HPE posting 40.4% revenue growth in their respective recent quarters. Ubiquiti shares have gained 36.7% over the past year and currently trade at 34.57 times forward earnings, above the industry average of 31.44.