NETGEAR beats Q4 revenue expectations

Overview

• Networking solutions provider's Q4 revenue flat yr/yr, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repurchased $50 mln of shares in 2025

Outlook

• NETGEAR expects Q1 2026 revenue between $145 mln and $160 mln

• Company anticipates Q1 2026 GAAP operating margin of (16.3)% to (13.3)%

• NETGEAR forecasts Q1 2026 non-GAAP operating margin of (6.0)% to (3.0)%

Result Drivers

• ENTERPRISE SEGMENT - Revenue grew 10.6% yr/yr, driven by strong demand for ProAV solutions and improved supply position

• CONSUMER SEGMENT - Revenue declined 8.4% yr/yr, but improved product mix and cost performance boosted margins

• SOFTWARE INNOVATION - Co focused on software-led innovation and partner engagement to drive future growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for NETGEAR Inc is $40.00, about 90.9% above its February 3 closing price of $20.95

• The stock recently traded at 84 times the next 12-month earnings vs. a P/E of 131 three months ago

Press Release: ID:nBwbCLYlRa

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