Fatpipe Surges Ahead with 27% Sales Growth and 65% Income Jump

Fatpipe, a NASDAQ-listed company with ticker FATN, reported its Q1FY27 results on September 21, 2026. The company saw a significant surge in sales and earnings per share. Sales increased by 27% year-over-year, while income grew by 65%. This growth was driven by larger deal sizes and expanded channel partnerships.

The gross margins remained stable at 92-93%, indicating that the shift towards larger deals did not significantly erode unit economics. Management noted that while margins fell slightly due to deal size dynamics, the overall financial discipline was preserved.

Fatpipe attributed its growth to a robust channel partner program, highlighted by a new partnership with TD Synnex, the world's largest technology distributor. The company is actively converting customers from competitors such as Cisco, VMware, and VeloCloud. A key example is a $7 million education sector win, where approximately 30-35% of the value was booked in the current quarter as units were delivered.