A10 Networks (NYSE:ATEN) Issues Earnings Results, Hits Expectations

by · The Markets Daily

A10 Networks (NYSE:ATEN – Get Free Report) issued its earnings results on Wednesday. The communications equipment provider reported $0.26 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.26, FiscalAI reports. A10 Networks had a net margin of 17.78% and a return on equity of 25.87%. The company’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.24 EPS. A10 Networks updated its FY 2026 guidance to 0.640-0.650 EPS.

Here are the key takeaways from A10 Networks’ conference call:

  • A10 reported record quarterly and full-year results, with $80.4 million in Q4 revenue and $290.6 million for FY2025, driven by strong growth in the Americas.
  • Profitability and cash metrics strengthened—record adjusted EBITDA of $86 million (29.6% of revenue), non‑GAAP gross margin ~80.6–80.8%, Q4 free cash flow of $16 million, and $378 million in cash plus ongoing buybacks and a quarterly dividend.
  • The company hit its target for security-led revenue (≈65% of Q4 and 72% for the year) and says its portfolio is well positioned for AI infrastructure needs (high throughput, low latency, encrypted-traffic management).
  • Management guided 2026 for continued top- and bottom-line growth—revenue growth of 10%–12%, gross margins in the 80%–82% range, expanding EBITDA margins, and EPS growth outpacing revenue.
  • Risks include regional weakness in APJ (notably Japan) and supply-chain pressures (memory/components, tariffs); management expects to mitigate impacts but said these factors could weigh on visibility.

A10 Networks Stock Performance

Shares of NYSE:ATEN traded up $0.22 on Wednesday, hitting $17.49. 774,520 shares of the company were exchanged, compared to its average volume of 606,505. The firm has a market capitalization of $1.25 billion, a P/E ratio of 25.72 and a beta of 1.23. The company has a current ratio of 3.64, a quick ratio of 3.49 and a debt-to-equity ratio of 1.06. A10 Networks has a 1-year low of $13.81 and a 1-year high of $21.90. The stock’s 50 day moving average price is $17.68 and its 200 day moving average price is $17.73.

Institutional Trading of A10 Networks

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. CANADA LIFE ASSURANCE Co grew its stake in A10 Networks by 3.9% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 80,265 shares of the communications equipment provider’s stock valued at $1,450,000 after purchasing an additional 3,049 shares during the last quarter. Verity Asset Management Inc. raised its stake in shares of A10 Networks by 3.2% in the third quarter. Verity Asset Management Inc. now owns 91,400 shares of the communications equipment provider’s stock worth $1,659,000 after purchasing an additional 2,795 shares during the last quarter. Qube Research & Technologies Ltd lifted its holdings in shares of A10 Networks by 68.4% during the third quarter. Qube Research & Technologies Ltd now owns 563,476 shares of the communications equipment provider’s stock worth $10,227,000 after purchasing an additional 228,837 shares during the period. Punch & Associates Investment Management Inc. boosted its position in A10 Networks by 4.0% in the third quarter. Punch & Associates Investment Management Inc. now owns 1,431,358 shares of the communications equipment provider’s stock valued at $25,979,000 after buying an additional 55,469 shares during the last quarter. Finally, Millennium Management LLC increased its holdings in A10 Networks by 55.5% in the 3rd quarter. Millennium Management LLC now owns 144,845 shares of the communications equipment provider’s stock worth $2,629,000 after buying an additional 51,718 shares during the period. Institutional investors and hedge funds own 98.61% of the company’s stock.

Analysts Set New Price Targets

ATEN has been the subject of a number of analyst reports. Weiss Ratings restated a “hold (c+)” rating on shares of A10 Networks in a report on Wednesday, January 21st. Wall Street Zen lowered A10 Networks from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, A10 Networks currently has a consensus rating of “Moderate Buy” and a consensus target price of $22.00.

Get Our Latest Stock Analysis on A10 Networks

A10 Networks Company Profile

(Get Free Report)

A10 Networks, Inc (NYSE: ATEN), headquartered in San Jose, California, designs and sells networking and security solutions that accelerate application performance and protect data across on-premises, cloud and hybrid environments. Founded in 2004, the company’s offerings target enterprises, service providers and cloud operators seeking high availability, secure access and optimized traffic delivery for critical applications.

The company’s core portfolio includes application delivery controllers (ADCs) for load balancing and traffic management, advanced distributed denial-of-service (DDoS) protection appliances, SSL inspection solutions and carrier-grade NAT (CGNAT) platforms.

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