
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. has demonstrated robust financial performance, with Annual Recurring Revenue (ARR) reaching $152 million, reflecting a significant year-over-year growth of 31% and a sequential increase adjusted for the recent Jolt acquisition. The IoT Solutions segment recorded sales of $32 million, increasing 23% year-over-year, largely driven by the success of SmartSense and contributions from Jolt, indicating healthy organic growth within the segment. The near-term outlook is also positive, with first-quarter fiscal 2026 sales guidance set between $114-118 million, representing an 11.7% year-over-year increase, alongside strong gross margins of 63.9%, suggesting ongoing operational efficiency and favorable product mix.
Bears say
Digi International Inc. is facing several fundamental challenges that contribute to a negative outlook on its stock. The company's reliance on module-oriented acquisitions, which yield lower gross margins compared to its historical average, combined with the impending obsolescence of certain hardware products, may lead to a decline in sales and profitability. Additionally, ongoing supply chain issues and elevated inventory levels, exacerbated by international tariffs, have created significant near-term financial pressures, further complicating the company's growth trajectory in both its IoT Products & Services and IoT Solutions segments.
This aggregate rating is based on analysts' research of Digi and is not a guaranteed prediction by Public.com or investment advice.
Digi (DGII) Analyst Forecast & Price Prediction
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