• In May 2026, Digi International announced the Digi Connect EZ 4 TS and EZ 8 TS, next‑generation serial device servers that modernize legacy serial infrastructure with enhanced security, centralized management, and backward‑compatible deployment for existing ConnectPort TS and PortServer TS environments.
• By combining Digi TrustFence security, cloud or on‑premise centralized management, and a form‑factor that preserves existing enclosures and wiring, these devices aim to reduce upgrade friction for industrial and enterprise users that still depend on serial connectivity.
• We’ll now examine how this launch of more secure, remotely managed serial servers may influence Digi International’s broader investment narrative.

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Digi International Investment Narrative Recap

To be comfortable owning Digi International, you need to believe in its shift toward secure, recurring revenue around mission critical connectivity and management. The new Connect EZ TS serial servers support that story by keeping legacy hardware relevant while plugging those devices into Digi’s managed, security focused stack. In the near term, the key catalyst remains recurring revenue growth and attach rates, while the biggest risk is that intense hardware competition and tariffs compress margins if customers hesitate to adopt Digi’s broader solutions.

Among recent announcements, the launch of the Digi IX25 industrial cellular router in March 2026 most closely ties into this story. Both IX25 and Connect EZ TS extend Digi’s secure, remotely managed footprint at the edge, with IX25 aimed at private LTE or 5G and the TS line focused on serial modernization. Together, they highlight how Digi is trying to deepen its role in critical infrastructure, which matters if you are focused on recurring software and services as the main growth driver.

Yet even with these positive product updates, investors should be aware of how tariff volatility and rising component costs could still...

Digi International's narrative projects $591.7 million revenue and $82.3 million earnings by 2029. This requires 9.6% yearly revenue growth and about a $39.9 million earnings increase from $42.4 million today.

Uncover how Digi International's forecasts yield a $50.50 fair value, a 26% downside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already modeling revenue of about US$665.4 million and earnings near US$130.7 million by 2029, which is a far more bullish view than consensus and could be challenged or reinforced by how products like Connect EZ TS affect the company’s slower hardware to software transition risk you saw earlier.

Explore 4 other fair value estimates on Digi International - why the stock might be worth 45% less than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Digi International research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Digi International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Digi International's overall financial health at a glance.

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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.