Digi International's stock fell sharply in after-hours trading, dropping 6.53% following the release of its first-quarter fiscal 2026 results.

The IoT solutions provider reported quarterly earnings per share of $0.31, significantly below the consensus estimate of $0.55. This earnings miss came despite the company posting revenue of $122.46 million, which exceeded analyst expectations of $116.1 million.

While Digi International provided second-quarter revenue guidance that was above consensus and reported adjusted metrics that beat estimates, investors focused on the substantial gap between reported earnings and expectations, leading to the after-hours sell-off.