Digi International Q1 2026 Earnings Snapshot

Digi International (DGII) has kicked off Q1 2026 with total revenue of US$122.5 million and basic EPS of US$0.31, setting the tone for its latest update. The company has seen quarterly revenue move from US$103.9 million in Q1 2025 to US$122.5 million in Q1 2026, while basic EPS has shifted from US$0.27 to US$0.31 over the same stretch, giving investors a clearer read on how earnings are tracking through the current cycle. With trailing twelve month net income at US$42.4 million and a net margin that has edged higher year over year, this set of results keeps the focus firmly on how efficiently Digi is turning sales into profit.

See our full analysis for Digi International.

With the latest numbers on the table, the next step is to see how this earnings story lines up against the widely followed growth and risk narratives around Digi International.

9.5% Net Margin Sets the Quality Bar

• Over the last 12 months, Digi has generated US$42.4 million of net income on US$448.8 million of revenue, which works out to a 9.5% net profit margin compared with 8.4% a year earlier in the same dataset.
• Supporters with a bullish tilt often point to this higher margin alongside trailing twelve month EPS of US$1.14 as evidence that profitability is holding up, yet the data also shows one year earnings growth of 19.1% compared with a five year pace of 29.9%, which means:
  • The margin and EPS levels back the bullish idea that Digi is not just adding sales, it is keeping a reasonable share of those sales as profit.
  • The slower one year earnings growth versus the longer term trend gives bulls something to watch, because the growth story they like is still present but not running as fast as the five year average in this dataset.

Over the last year, Digi’s mix of a 9.5% net margin and 19.1% earnings growth has become a key reference point for investors asking how durable this profit profile really is. 📊 Read the full Digi International Consensus Narrative.

Revenue Trends Trail Broader Market

• The data shows revenue growth of about 8.7% per year on a trailing basis compared with a 10.3% per year forecast for the wider US market, so Digi’s top line sits a little behind that broader benchmark even as trailing revenue reaches US$448.8 million.
• Critics taking a more bearish angle often focus on this slower revenue trajectory, and the figures here give them material to work with while also setting some limits on that concern:
  • On one hand, the 8.7% revenue growth rate does not match the market’s 10.3% forecast, which lines up with the cautious view that Digi is not currently keeping pace with the wider growth backdrop in this dataset.
  • On the other hand, pairing that revenue growth with 19.1% earnings growth over the past year suggests cost control or mix effects are contributing to profit expansion, which softens the bearish worry that slower sales growth automatically means weaker earnings.

P/E Premium Versus 48.1% DCF Discount

• At a share price of US$44.72, Digi trades on a trailing P/E of 39.6x compared with 31x for the US Communications industry and 29.8x for peers, while a DCF fair value of about US$86.15 in this dataset points to a 48.1% gap between that model value and the current price.
• What stands out for investors is how this mix of a premium P/E and large DCF discount pulls the bullish and bearish stories in opposite directions, and the numbers set clear reference points for both sides:
  • Bears highlight the 39.6x P/E relative to the 31x industry and 29.8x peer averages as evidence that the market is already paying more for Digi’s earnings stream than for many comparable names.
  • Bulls, in contrast, look at the US$44.72 share price against the US$86.15 DCF fair value and the 19.4% forecast annual earnings growth rate and argue that the higher P/E is being judged against a price that still sits materially below that model value.

Some investors will treat this combination of a premium P/E and 48.1% DCF discount as a starting point to stress test their own view on whether Digi’s growth and profitability support the current valuation or the modelled fair value. Stay updated on the most important news stories for Digi International by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Digi International.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Digi International's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

While Digi’s profit margin and earnings look solid in this dataset, its 8.7% revenue growth trails the wider US market’s 10.3% forecast.

If that slower top line has you rethinking your watchlist, take a look at our 55 high quality undervalued stocks that pairs growth concerns with price tags some investors may find more appealing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.