
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. reported a significant increase in annual recurring revenue (ARR) of $152 million, reflecting a 31% year-over-year growth, and a strong performance in its IoT Solutions segment, which generated $32 million in sales, up 23% year-over-year. The company's guidance for the first quarter of fiscal 2026 indicates projected sales of $114-118 million, representing an 11.7% year-over-year increase at the midpoint, while gross margins improved to 63.9%, exceeding expectations. Additionally, the strong performance was underscored by a notable sales beat in the fourth quarter of fiscal 2025, leading to rising share prices following a robust financial demonstration and optimistic forward guidance.
Bears say
Digi International Inc. faces a negative outlook primarily due to its acquisitions of lower-margin, module-oriented products, which may lead to reduced gross margins compared to their historical averages, as well as potential lost market share. The company is also contending with several challenges, including hardware products nearing the end of their life cycles that could adversely impact sales and gross margins, alongside lagging net new connected devices due to dependence on third-party wireless communication networks. Furthermore, elevated inventory levels resulting from ongoing supply chain headwinds, in conjunction with pressures from global tariffs, complicate the financial landscape and create uncertainty regarding near-term free cash flow.
This aggregate rating is based on analysts' research of Digi and is not a guaranteed prediction by Public.com or investment advice.
Digi (DGII) Analyst Forecast & Price Prediction
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