Audinate shares rise 13% as FY 2026 outlook signals return to growth

Shares of Audinate Group Ltd. surged 13% on Monday after the audio networking technology company projected a return to growth in its fiscal 2026 outlook, marking the first positive forecast in three years.

The company, which specializes in Dante audio networking solutions, provided its financial guidance for the year ending June 30, 2026, following an earnings call. Audinate’s management outlined a path to revenue growth and improved profitability, citing strong demand for its Dante-enabled products in professional audio and video markets.

Analysts noted that the revised outlook exceeded market expectations, which had largely anticipated continued contraction given recent industry headwinds. Revenue for the prior fiscal year declined 8% year-over-year, reflecting softer demand in key segments. However, management highlighted a rebound in bookings and a robust pipeline of enterprise and OEM partnerships as drivers of the improved outlook.

Audinate’s gross margin is expected to expand to 58% in FY 2026, up from 54% in FY 2025, supported by cost efficiencies and pricing adjustments. The company also reaffirmed its commitment to R&D investment, particularly in next-generation Dante solutions, to sustain long-term growth.

Investors responded positively to the guidance, with shares rising 13% to A$3.55 in early trading, recouping some of the losses from the prior year’s decline. The stock has underperformed the broader Australian market over the past 12 months, down approximately 20% amid broader tech sector volatility.

Management emphasized that the return to growth is contingent on macroeconomic stability and continued adoption of Dante technology in high-growth verticals such as live events, broadcast, and conferencing. The company’s guidance assumes no material disruptions from geopolitical tensions or supply chain constraints.

Audinate’s next earnings report, covering the first half of FY 2026, is scheduled for February 2026.