A10 Networks Q3 revenue beats estimates as higher network traffic, AI deployments increase demand
Overview
Secure application services provider's Q3 revenue rose 23% yr/yr, beating analyst expectations
Non-GAAP EPS for Q3 grew faster than revenue
Company repurchased $23 mln in shares and paid $4.4 mln in dividends in Q3
Outlook
A10 Networks raises 2026 revenue growth outlook to about 16% from 12-14%
Company expects 2026 non-GAAP adjusted EBITDA margin above 30%
A10 Networks sees 2026 non-GAAP diluted EPS of $1.08-$1.10, up 20-22% over 2025
Result Drivers
NETWORK TRAFFIC AND AI - Co said increased network traffic, AI deployments and complex security needs drove demand for its solutions
BROAD-BASED CUSTOMER DEMAND - Co reported double-digit revenue growth from customers excluding its largest client
SUPPLY CHAIN MANAGEMENT - Co said it is managing supply challenges while translating revenue growth into higher profits
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $91.55 mln | $83.88 mln (5 Analysts) |
Q3 Net Income | $17.16 mln | ||
Q3 EBIT | $18.30 mln | ||
Q3 Gross Profit | $72.05 mln | ||
Q3 Operating Expenses | $53.76 mln | ||
Q3 Pretax Profit | $19.74 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for A10 Networks, Inc. is $37.50, about 57.5% above its November 4 closing price of $23.81
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 26 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)