DGII stock forecast, quote, news & analysis
Digi International Inc is a Minnesota corporation that provides business and mission-critical Internet of Things (IoT) connectivity products and services... Show more
Digi International (DGII) Stock Analysis: Recurring Revenue and AI Tools Power Steady IoT Growth
Key Takeaways
- Digi International shares have traded in a relatively narrow range over the past 30 days, moving modestly higher rather than staging a sharp rally or sell-off.
- The company posted record fiscal third-quarter 2026 results, including revenue of $139 million, up 29% year over year, and record annual recurring revenue (ARR) of $191 million.
- Management raised its full-year outlook and is executing a strategy built on recurring revenue, margin expansion, and disciplined acquisitions.
- A recently launched AI capability, DANI (Digi Artificial Network Intelligence), adds a new layer to the company's software and services story.
Current Market Snapshot
Digi International (DGII) has held a steady posture in recent weeks, with its share price up only a few percentage points over the trailing 30-day window rather than experiencing a double-digit swing. This measured behavior reflects a stock consolidating after a period of fundamental strength, as investors weigh record financial results and raised guidance against broader technology-sector sentiment.
As a provider of business- and mission-critical Internet of Things (IoT) connectivity, Digi sits at the intersection of several durable demand themes, including industrial digitization, edge networking, and AI-driven infrastructure. The company's growing mix of recurring, subscription-style revenue has been a focal point for analysts, supporting both profitability and cash-flow visibility.
Digi International (DGII) Business Overview and Competitive Position
Founded in 1985 and headquartered in Minneapolis, Digi International is a leading global provider of IoT connectivity products, services, and solutions. The company helps customers build connected products and deploy and manage critical communications infrastructure in demanding environments where security and reliability are essential.
Digi operates through two reportable segments. Its IoT Products and Services business spans routers, gateways, console servers, and embedded modules, along with the Digi Remote Manager platform and brands such as Opengear. Its IoT Solutions segment delivers managed connectivity and asset-monitoring offerings through brands including Ventus and SmartSense. The company reports having helped customers connect more than 100 million devices.
Investors follow the stock for its shift toward recurring revenue, its acquisition-driven growth strategy, and its exposure to long-running industrial-IoT and edge-computing tailwinds.
Recent Developments Driving DGII
Digi's fiscal third-quarter 2026 results, reported in August 2026, underscored the company's momentum. Revenue reached $139 million, up 29% year over year, while gross margin came in at 64.8%. Adjusted EBITDA rose to a record $40 million, representing a record 29.1% margin, and operating cash flow climbed 38% year over year to $33 million.
Annual recurring revenue reached a record $191 million, and management raised its fourth-quarter and full-year outlook. The company now expects full-year revenue of $529 million to $533 million, adjusted EBITDA of $146 million to $147.5 million, and adjusted diluted earnings per share of $2.67 to $2.70, with ARR growth of at least 27%.
The integrations of recent acquisitions, Jolt and Particle, have progressed according to plan and are contributing to ARR and profitability. Digi also introduced DANI, a cloud-based AI assistant for Digi Remote Manager that lets users ask natural-language questions about network performance and connected assets. Management cited AI-related infrastructure activity and a gradual normalization of customer decision cycles as supportive demand factors.
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2026 Outlook and What Investors Should Watch
Heading into the remainder of fiscal 2026, investors will likely focus on Digi's ability to sustain ARR growth and margin expansion while integrating acquisitions. Management has set longer-term objectives of reaching $200 million in ARR and $200 million in adjusted EBITDA by 2028, and progress toward those targets will be a key narrative.
Near-term catalysts include the company's next earnings report, expected in November 2026, where updates on guidance, ARR momentum, and the performance of the Jolt and Particle integrations will matter. Macroeconomic factors such as industrial purchasing trends, supply-chain conditions, and enterprise technology spending will also influence demand. Competitive pressures in IoT connectivity and any shifts in AI-related infrastructure investment remain important variables for investors to monitor.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
DGII in +5.20% Uptrend, advancing for three consecutive days on October 27, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where DGII advanced for three days, in 241 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for DGII crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DGII as a result. In 53 of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for DGII turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 27 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 63%.
DGII moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DGII declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
DGII broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 6 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 14 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. DGII’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.989) is normal, around the industry mean (6.313). P/E Ratio (55.837) is within average values for comparable stocks, (4.917). Projected Growth (PEG Ratio) (0.981) is also within normal values, averaging (0.778). Dividend Yield (0.000) settles around the average of (0.110) among similar stocks. P/S Ratio (5.330) is also within normal values, averaging (11.937).
The Tickeron SMR rating for this company is 78 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a provider of communications adapters that enable open systems, server-based applications
Industry TelecommunicationsEquipment