Ubiquiti Inc. (NYSE:UI) stock initially traded higher Friday after the networking technology company reported fiscal fourth-quarter results that topped Wall Street expectations for both revenue and adjusted earnings. However, the stock has since given up those gains and moved lower.

Ubiquiti reported adjusted earnings of $4.73 per share, beating the $4.03 analyst estimate. Revenue rose 23.5% year over year to a record $937.3 million, topping the $850.5 million consensus estimate.

Enterprise Technology Drives Revenue Growth

Enterprise Technology revenue jumped to $868.3 million from $680.1 million a year earlier. Meanwhile, Service Provider Technology revenue fell to $69 million from $79 million. Ubiquiti said Enterprise Technology drove overall revenue growth, partly offset by the decline in its Service Provider Technology platform.

Gross profit increased to $429.3 million from $342.7 million a year earlier. Gross margin improved to 45.8% from 45.1%. However, it declined from 47% in the previous quarter.

Ubiquiti warned that higher component costs and supply constraints could pressure gross margins in the near term. The company said pricing and other measures could help offset some of those costs.

GAAP net income rose 6.8% year over year to $284.9 million, while adjusted net income climbed 33.6% to $286.5 million. GAAP diluted EPS increased to $4.70 from $4.41.

Ubiquiti Extends $500 Million Buyback

Ubiquiti’s board declared a quarterly cash dividend of $1 per share, payable Sept. 8 to shareholders of record Aug. 31. The company also said it intends to pay quarterly dividends of at least $1 per share during fiscal 2027, subject to board approval.

In addition, Ubiquiti extended its existing stock repurchase program. The authorization allows the company to buy back up to $500 million of common stock through Sept. 30, 2027.

UI Price Action: Ubiquiti shares were down 4.54% at $547.82 at the time of publication on Friday, according to Benzinga Pro data.

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