Digi International (DGII) Price Target Raised to $50 as FY26 Outlook Signals Underlying Strength

Sajjl Nooranne

Wed, February 25, 2026 at 11:29 AM GMT+9 2 min read

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We recently published an article titled 13 Best Internet of Things (IoT) Stocks to Buy Now.

On February 5, Craig-Hallum raised its price target on Digi International Inc. (NASDAQ:DGII) to $50 from $45 and reiterated a Buy rating, citing management’s confidence in acquisition integration, strong growth in its Cellular Solutions segment, and resilience following a tariff pause. The firm characterized the company’s raised fiscal 2026 guidance as potentially conservative relative to underlying momentum. The company reported a strong December quarter and March guide, and the company raised its FY26 guidance, though Craig-Hallum believes it was conservative.

That same day, Digi International Inc. (NASDAQ:DGII) reported first-quarter revenue of $122 million, exceeding consensus estimates of $115.6 million and representing 18% year-over-year growth, while setting multiple company records. Management highlighted double-digit growth in ARR, revenue, adjusted EBITDA, and adjusted EPS, supported by the addition of Jolt. For fiscal 2026, Digi guided to 23% ARR growth, 14%–18% revenue growth, and 17%–21% adjusted EBITDA growth, incorporating contributions from Particle. Second-quarter revenue is expected to be between $124 million and $128 million, with adjusted EBITDA of $31.5 million to $33 million. Full-year adjusted EPS is forecast at $0.56 to $0.59. Management emphasized embedding AI capabilities across its solutions portfolio and positioning the company to capitalize on secular growth in edge intelligence, industrial automation, and connected infrastructure. Strong recurring revenue growth and expanding AI integration support a constructive long-term outlook.

Digi International Inc. (NASDAQ:DGII), founded in 1985 and headquartered in Hopkins, Minnesota, provides IoT and machine-to-machine connectivity solutions that enable businesses to deploy and manage connected products and critical communications infrastructure.

While we acknowledge the potential of DGII as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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