Digi International (NASDAQ:DGII) is a company that provides "Internet of Things" (IoT) connectivity products and services. It helps businesses connect and manage their electronic devices remotely. Digi International operates in a competitive market, offering IoT solutions that are critical for industries like transportation, energy, and healthcare.
On May 7, 2026, analyst firm Roth Capital increased its price target for Digi International to $70.00 from $54.00. This new target was set when the stock was trading at $67.36. The upgrade reflects growing confidence in the company's financial health and future prospects following strong quarterly results.
The positive analyst view is supported by Digi International's recent earnings report. The company announced quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.58 per share, as highlighted by Zacks. This figure also represents a notable increase from the $0.51 per share reported in the same quarter last year.
Digi International also reported record quarterly revenue of $131.00 million, a 25% increase from the previous year. This performance surpassed the Zacks Consensus Estimate by 3.69%. This marks the fourth consecutive quarter that the company has exceeded consensus estimates for both its earnings per share and its revenue.
The company's financial strength is also seen in its Annualized Recurring Revenue (ARR), which hit a record $184.00 million. ARR measures the predictable revenue a company can expect from its subscriptions over a year. Additionally, Digi International generated a record cash flow from operations of $41.00 million.
