Digi International (NASDAQ:DGII) Soars on Strong IoT Performance and Raised Price Target

• Digi International (NASDAQ:DGII) received a raised price target of $90.00 from Roth Capital, maintaining a "Buy" rating.
• The company reported strong third-quarter financial results, beating analyst estimates with earnings of $0.75 per share and revenue of $138.67 million.
• Demonstrated significant growth and profitability, including 29% revenue growth, record adjusted EBITDA of $40 million, and $191 million in Annual Recurring Revenue (ARR).

Digi International is a global company that provides Internet of Things (IoT) products, services, and solutions. It helps businesses connect and manage their devices for critical operations. The company operates in the Computer - Networking industry, creating technology that allows machines to communicate with each other over the internet.

On August 6, 2026, Roth Capital raised its price target for Digi International to $90.00 from a previous target of $70.00. The investment firm maintained its "Buy" rating on the shares. This change occurred when the stock price was at $83.01, which was a new 52-week high for the company.

This positive outlook follows Digi International's strong financial results for its third quarter. As highlighted by Zacks Investment Research, Digi International reported adjusted quarterly earnings of $0.75 per share, which was higher than the analyst estimate of $0.67 per share. The company's revenue of $138.67 million also beat expectations.

Digi International's performance shows strong growth and profitability. As announced by Business Wire, revenue grew 29% compared to the same quarter last year. Digi International also reported a record adjusted EBITDA of $40 million. EBITDA is a measure of a company's operating profit before certain non-cash expenses are deducted.

Other key metrics also show financial strength. The company's annual recurring revenue (ARR), which measures predictable income from subscriptions, reached a record $191 million. Cash flow from operations totaled $33 million, a 38% increase year-over-year. Following these results, the company raised its financial outlook for the fourth quarter.