FatPipe Inc. (NASDAQ:FATN) shares are trading sharply higher this Friday. The move follows the company’s preliminary fourth-quarter fiscal 2026 business update released Thursday.
The Nasdaq is up 1.17% while the S&P 500 has gained 0.68%.
• Fatpipe stock is among today’s top performers. Why is FATN stock up today?
Massive Revenue Growth
The SD-WAN pioneer expects fourth-quarter revenue between $6.6 million and $7 million. This range represents approximately 79% year-over-year growth at the midpoint. This jump highlights increasing demand for its enterprise-class networking and cybersecurity solutions.
Adjusted EBITDA Skyrockets
Profitability metrics showed even more dramatic improvement. FatPipe forecasts adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) between $3 million and $3.2 million for the fourth quarter of fiscal 2026. This compares to just $0.2 million in the fourth quarter of fiscal 2025.
Strategic Public Sector Expansion
The company also credited expanded availability across government and education procurement contracts. FatPipe is now accessible via the NASA Solutions for Enterprise-Wide Procurement (SEWP) contract. It also partnered with TD SYNNEX through the Equalis Group cooperative purchasing program.
Streamlining Education Contracts
FatPipe’s technology is now available through several state-level education contracts. These agreements allow K-12 and higher education institutions to bypass traditional procurement hurdles.
Technical Analysis
FatPipe is rebounding off its March swing low, though it remains well below the $13.69 high.
It’s trading 47.2% above its 20-day simple moving average (SMA) and 54.7% above its 100-day SMA.
The relative strength index (RSI), a momentum gauge, is 71.74.
- Key Resistance: $4
- Key Support: $2
FATN Stock Price Activity: Fatpipe shares were up 6.58% at $3.24 at the time of publication on Friday, according to Benzinga Pro data.
Photo: Miha Creative / Shutterstock
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