Digi International Inc. (DGII)

NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-10-23

$74.95+2.95%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge Digi International Inc.’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

Comparable estimates unavailable

+10% or more+5%0%−5%−10% or less

A matching fiscal period and sufficient coverage are required.

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

The calculation requires same-period, same-provider snapshots, positive EPS, at least five analysts and a baseline within three days of the requested lookback.

Measure / period	Management expectations	Analyst expectations
FY 2027 · Q1
Revenue	—	140.15M
EPS	—	0.733
FY 2026 · Annual
EBITDA	$40M–$41.5Mnon-GAAP	—
FY 2027 · Annual
Revenue	—	578.52M
EPS	—	3.132
FY 2028 · Annual
Revenue	—	604.45M
EPS	—	3.395

What the Thesis Depends On

Three published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Operating income improves to at least $17M	Profit rises with operating income up from $13M to $17M in one year.	Intact	Operating income falls below $17M in FY26 Q2	Operating income: $22.895M FY2026-Q3; GAAP. Published target: >=17M USD operating income. Target period is not explicitly aligned with this observation. Source published Aug 5, 202622,895,000 USD · source valueSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q3 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: a06dae2e-535c-4a7f-9d22-4bd934df8792. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Successful adoption of new 5G router products	New 5G products and a business pivot support growth.	Intact	New 5G products fail to contribute meaningfully to revenue growth	5G contribution qualitative; record revenue & raised FY outlook to $529M-$533M Q3 FY26 beat with record margins, 52% ARR growth, and raised FY revenue outlook to $529M-$533M. Context reviewed through Oct 23, 2026Last status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Revenue grows at least 14.7% next year	Digi International grows revenue about 25% year over year.	Intact	YoY revenue growth falls below 14.7% next year	Revenue growth: 28.98% FY2026-Q3; GAAP. Published target: >=14.7% YoY revenue growth. Target period is not explicitly aligned with this observation. Source published Aug 5, 202628.978552 percent · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q3 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: a06dae2e-535c-4a7f-9d22-4bd934df8792. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2028 · fiscal year ending 2028-09-30 · fmp

FY2028 EPS: comparable history unavailable.

FY2028 revenue: comparable history unavailable.

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2028 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-10-01	Unavailable	Unavailable	1 / 2
2026-10-02	Unavailable	Unavailable	1 / 2
2026-10-03	Unavailable	Unavailable	1 / 2
2026-10-04	Unavailable	Unavailable	1 / 2
2026-10-05	Unavailable	Unavailable	1 / 2
2026-10-06	Unavailable	Unavailable	1 / 2
2026-10-07	Unavailable	Unavailable	1 / 2
2026-10-08	Unavailable	Unavailable	1 / 2
2026-10-09	Unavailable	Unavailable	1 / 2
2026-10-10	Unavailable	Unavailable	1 / 2
2026-10-11	Unavailable	Unavailable	1 / 2
2026-10-12	Unavailable	Unavailable	1 / 2
2026-10-13	Unavailable	Unavailable	1 / 2
2026-10-14	Unavailable	Unavailable	1 / 2
2026-10-15	Unavailable	Unavailable	1 / 2
2026-10-16	Unavailable	Unavailable	1 / 2
2026-10-17	Unavailable	Unavailable	1 / 2
2026-10-18	Unavailable	Unavailable	1 / 2
2026-10-19	Unavailable	Unavailable	1 / 2
2026-10-20	Unavailable	Unavailable	1 / 2
2026-10-21	Unavailable	Unavailable	1 / 2
2026-10-22	Unavailable	Unavailable	1 / 2
2026-10-23	Unavailable	Unavailable	1 / 2
2026-10-24	Unavailable	Unavailable	1 / 2

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold
2026-05-01	5	1
2026-06-01	5	1
2026-07-01	5	1
2026-08-01	4	1
2026-09-01	4	1
2026-10-01	4	1

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 4 Buy / Strong Buy · 1 Hold · 0 Sell / Strong Sell

0 upgrades0 downgrades0 maintains

Recent actions · Sep 25–Oct 24 · 0 recorded

Price-target changes

30 days

Individual price-target observations are unavailable.

0 raises · 0 cuts · 0 unchanged · 0 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Operating income improves to at least $17MOperating income: $22.895M
Revenue grows at least 14.7% next yearRevenue growth: 28.98%

Next proof point

Nov 11, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

2 of 3 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

1.7%Typical daily move · historical

Downside history

-21.8%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Digi International Inc. outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

DGII is a growth business with a meaningful acquisition component, rather than a turnaround. The long-term thesis is intact: recent results remain strong, while management is on track with key growth priorities; confidence in the assessment is medium.

What's priced into Digi International Inc.

The valuation is expensive versus peers, even though one valuation measure points to DGII being cheap versus peers. The priced-in signal is labeled justified, and there are no flagged signs of concentrated fragility, but the expectations gap is negative, so the valuation leaves limited room for execution to weaken.

What the fundamentals likely do

Near term, recent results show strong revenue and ARR growth, and management raised fiscal 2026 adjusted EBITDA growth guidance. Debt has also declined, though balancing acquisitions with further deleveraging remains mixed. The near-term earnings miss risk is described as low, but a prior deep miss and a downward trend in earnings surprises warrant attention.

What Digi International Inc. hinges on

Over the multi-year view, the thesis depends on continued organic growth, successful acquisitions, and progress toward management’s ARR and adjusted EBITDA priorities. Near term, a guidance cut after a recent raise would damage credibility; rate cuts or continued strength among technology bellwethers could support the sector backdrop.

Bottom line

Over the next 1 to 3 years, DGII has strong operating momentum and an intact thesis, but an expensive peer valuation makes continued delivery important. Not investment advice.

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.