A10 Networks beats Q4 revenue expectations on strong demand for AI infrastructure and integrated security

Overview

• Secure application services provider's Q4 revenue beat analyst expectations

• Adjusted EPS for Q4 was $0.26, with non-GAAP net income of $19.1 mln

• Company returned $11.2 mln to investors via share repurchases and dividends

Outlook

• A10 Networks expects 2026 revenue growth of 10-12% over 2025

• Company projects 2026 non-GAAP gross margin of 80-82%

• A10 Networks anticipates 2026 EPS growth of 12-14% year-over-year

Result Drivers

• AI AND SECURITY DEMAND - Strong demand for AI infrastructure and integrated security solutions drove Q4 revenue growth, per CEO Dhrupad Trivedi

• NEXT-GEN NETWORKING - Expansion driven by next-gen networking and cybersecurity solutions while maintaining legacy customer alignment

• OPERATIONAL DISCIPLINE - Operational discipline supported cash flow and shareholder returns, enabling continued investment in business

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $23.00, about 33.2% above its February 3 closing price of $17.27

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw9zcGyXa

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