Extreme Networks Stock Jumps 18% on Report It Is Exploring a Sale, With Cisco and Fortinet as Possible Buyers

Shares of Extreme Networks Inc. jumped 18% on Friday after Reuters reported the networking equipment maker is exploring a sale following takeover interest.

Extreme shares rose $3.83, or 18.19%, to $24.88 in Friday trading, lifting the company's market value to about $3.3 billion.

Sale process

Extreme Networks is exploring a sale after attracting inbound acquisition interest, according to people familiar with the matter, Reuters reported Friday. The company is working with an investment bank on a sale process following the approach, the sources said.

Several major tech firms could be interested. Potential strategic buyers could include cybersecurity provider Fortinet, networking giant Cisco Systems and data infrastructure provider NetApp, among others. Fortinet and Cisco did not immediately respond to requests for comment.

Based in Morrisville, North Carolina, Extreme provides software and equipment that help enterprises manage wired and wireless networks.

Solid results

The report comes after strong recent earnings. Extreme reported fiscal first-quarter adjusted earnings of 33 cents a share, topping the 28-cent estimate, with revenue of $341.1 million versus a $333.16 million forecast, and lifted its full-year outlook.

The company expects full-year earnings of $1.35 to $1.39 a share, with revenue of $1.4 billion to $1.41 billion.

The balance sheet has strengthened. Extreme generated $39 million of free cash flow and ended the quarter with $245 million of cash, its highest since fiscal 2021.

Volatile stock

Shares fell more than 25% after the company's fiscal 2026 results due to decelerating growth. The stock's 52-week range is $13.47 to $33.73.

Analysts are generally positive. MarketBeat data show a "Moderate Buy" consensus with an average price target of $33.86; seven analysts rate it Buy and two Hold.

No deal has been announced, and talks may not lead to a transaction.