Why Extreme Networks (EXTR) is One of the Best Small-Cap Stocks With Huge Growth Potential

Extreme Networks, Inc. (NASDAQ:EXTR) is one of the best small-cap stocks with huge growth potential. On January 29, UBS cut the price target on Extreme Networks, Inc. (NASDAQ:EXTR) to $17 from $21 and maintained a Neutral rating on the shares, telling investors that it is remaining on the sidelines amid “mixed” Q2 metrics.

In a separate development, B. Riley Securities reiterated a Buy rating on Extreme Networks, Inc. (NASDAQ:EXTR) on January 28, setting a price target of $26.00. The rating updates came after Extreme Networks, Inc. (NASDAQ:EXTR) announced its fiscal Q2 2026 financial results on January 28, with revenue for the quarter reaching $317.9 million, up 14% year-over-year and up 2.5% quarter-over-quarter. SaaS ARR was $226.8 million, up 25.2% year-over-year and 4.9% quarter-over-quarter. Management further reported that the GAAP diluted EPS for the quarter reached $0.06, compared to $0.06 last year and $0.04 last quarter.

Kevin Rhodes, Executive Vice President and Chief Financial Officer, stated that the company’s fiscal Q2 results exceeded expectations for profitability and revenue, and reflected the leverage in its business model, where earnings growth exceeds revenue growth by 10 percentage points.

Extreme Networks, Inc. (NASDAQ:EXTR) is involved in the development and marketing of network infrastructure equipment and related software. It designs, develops, manufactures wired, wireless, and software-defined wide area-network infrastructure equipment, software, and cloud-based network management solutions.

While we acknowledge the potential of EXTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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