Ubiquiti’s Stock (NYSE:UI) Down 20% In Week Leading Into Earnings – What To expect

Ubiquiti's stock (NYSE: UI) has pulled back 20% from recent highs, with little over 1 week required to shed more than one fifth of market cap, or more than $5billion. Despite this, UI continues to trade 15.11% higher YTD as earnings approach before the market opens tomorrow.

The street is looking for Ubiquiti to post an EPS of $2.23 for the current quarter, up strongly from the $$1.74 delivered in the same period Y/Y. Revenue at the midpoint is expected to come in at $635.2M, for a 25.17% sales growth rate.

Recent financial results tell a compelling story of growth. In the third quarter of fiscal 2025, Ubiquiti reported revenues of $664.17 million, a substantial increase from $492.997 million in the same period the previous year. Net income soared to $180.435 million from $76.29 million year-over-year, driven by robust product demand and effective cost management. This surge in profitability also translated to a significant increase in earnings per share (EPS), which rose to $2.98 from $1.26.

The consistent performance is not limited to Q3 2025. Earlier in the fiscal year, Ubiquiti reported adjusted earnings of $2.28 per share for the quarter ending December 31, 2024, exceeding the previous year's EPS of $1.38. Revenue increased by 29% to $599.88 million, surpassing analyst expectations. Similarly, the first quarter of fiscal 2025 saw net income rise to $128 million, or $2.12 per share, compared to $87.8 million, or $1.45 per share, in the year-ago quarter.

The average price target of $343.50 remains some way down from here, with the street's outlook having failed to keep pace with price action. With some froth coming off the top of the AI, and tech trade in recent days, it will be interesting to see how markets react to UI's latest print in the morning.