Why Is DIGI INTL INC (DGII) Stock Down Today?

Digi International (DGII) shares fell 13.68% to $57.80 following the release of fourth-quarter fiscal 2026 results. The primary driver of the decline was a significant post-earnings gap, as the stock opened at $55.24, representing a 17.5% drop from the prior close of $66.96.

What Happened

The company reported non-GAAP earnings per share of $0.78, which beat estimates by $0.02. Revenue came in at $143 million, exceeding expectations by $2.73 million and rising 25.1% year over year. For the full fiscal year 2026, revenue climbed 24%. The company filed a Form 8-K on November 12, 2026, to disclose these results of operations and financial condition.

Management highlighted a record revenue figure and an all-time high pipeline during the earnings call. The company stated that a $200 million annual recurring revenue goal is within reach. Piper Sandler maintained a Neutral rating on the stock but lowered its price target to $67. The company is also eyeing a pending deal, which contributed to the narrative surrounding the earnings release.

What The Data Shows

The intraday session showed volatility, with the stock hitting a low of $52.80 at 9:40 AM ET and a high of $58.05 at 10:55 AM ET. Volume stood at 0.3 million shares, which is 0.9 times the three-month daily average. The stock printed a fresh 52-week low on November 12, 2026.

Fundamentals show a market capitalization of $2.5 billion and a price-to-earnings ratio of 53.1. Trailing twelve-month revenue growth is 20.3%, with a net margin of 9.6%. The 52-week range for the stock is $35.15 to $86.84. In the last 90 days, there were no congressional buys and one sell, with the most recent filing dated September 22, 2026.

What To Watch

Investors will monitor the company's progress toward its $200 million annual recurring revenue goal and the status of the pending deal. The breadth of analyst coverage, including the recent price target adjustment by Piper Sandler, will also be a key factor in near-term trading activity.