FatPipe, Inc. (NASDAQ:FATN) saw its stock price decline on Wednesday following the prior day's notable surge, which was fueled by the release of strong third-quarter financials. The company announced a total revenue of $4.1 million for fiscal Q3 2026, representing a 30% improvement relative to the same period in the previous year. Alongside this, monthly recurring billings increased by 48%, underscoring a robust demand for FatPipe’s subscription-based services.
This financial uplift coincided with the closure of several major multi-site SD-WAN deployments across diverse sectors such as education and financial services. Such wins have contributed positively to FatPipe’s growth trajectory.
Despite these encouraging signs, FatPipe’s stock experienced downward pressure amid a broader market decline, with the technology sector falling by approximately 2.6%. Concurrently, major indexes were also in negative territory, with the S&P 500 decreasing 0.4% and the Nasdaq sliding 1.56% at the time.
FatPipe Chief Executive Officer Dr. Ragula Bhaskar commented on the performance, stating, “We are seeing strong demand for our secure, high-performance SD-WAN and cybersecurity solutions, particularly from customers looking to modernize critical infrastructure while reducing complexity and cost.” Dr. Bhaskar highlighted the company’s expanding recurring revenue, growth in sales coverage, and a unique single-stack cybersecurity solution as foundational elements positioning FatPipe for sustained long-term advancement.
Looking at the technicals, the stock price trades 12.2% above the 20-day simple moving average (SMA) but lags 37.7% below the 100-day SMA, suggesting challenges in maintaining momentum over an extended period. Over the year, the stock has declined roughly 82.38%, sitting nearer to its 52-week low rather than its high. Momentum indicators present a mixed outlook; the Relative Strength Index (RSI) is at 65.13, within neutral bounds, whereas the Moving Average Convergence Divergence (MACD) sits above its signal line, indicative of some bullish momentum.
Key technical resistance is identified at $2.50, with support around $2.00. These levels frame the current trading environment and provide context for potential price movements.
The essence of FatPipe’s recent earnings release points to significant progress in expanding recurring revenues, a vital metric for companies offering subscription-based secure networking products. Growth in the sales organization and channel partnerships further positions the business to compete effectively within its industry amid evolving customer demands for simplified, cost-efficient infrastructure solutions.
At the time of reporting, FatPipe shares were priced at $2.33, down 10.38% from recent highs, reflecting the ongoing volatility influenced by both company-specific and broader market factors.
This dynamic illustrates the often complex relationship between solid operational performance and stock market reception, especially when wider sector or market pressures influence investor sentiment.