Digi's stock plummeted 15.25% during intraday trading on Thursday, marking a significant decline for the IoT solutions provider.

The sharp decline followed the company's first-quarter fiscal 2026 earnings report, which showed earnings per share of $0.31, significantly below the consensus estimate of $0.55. Investors reacted negatively to the substantial earnings miss, leading to selling pressure.

Despite the company reportedly posting revenue that exceeded analyst expectations, the earnings shortfall dominated investor sentiment and drove the stock lower during the trading session.