A10 Networks Raises 2026 Outlook as Q3 Revenue Hits Record

A10 Networks (NYSE: ATEN) raised its full-year 2026 growth outlook after third-quarter revenue reached a record $91.5 million, up about 23% from $74.7 million a year earlier. The networking and security company now expects annual revenue growth of 16%, compared with its previous 12% to 14% range, while projected non-GAAP EPS growth increased to 20% to 22% from 14% to 16%.

Profitability also strengthened in the quarter. Non-GAAP operating income rose to a record $25.5 million from $18.5 million in Q3 2025, lifting the non-GAAP operating margin to 27.8% from 24.7%. Adjusted EBITDA increased to $29.5 million from $21.9 million, representing a 32.2% margin. Non-GAAP diluted EPS was $0.31, compared with $0.23 a year earlier.

On a GAAP basis, third-quarter operating income increased to $18.3 million from $13.0 million, while net income rose to $17.2 million from $12.2 million. GAAP EPS was $0.23, up from $0.17. The GAAP gross margin declined to 78.7% from 80.1%, and the non-GAAP gross margin eased to 80.0% from 80.7%.

For the first nine months of 2026, revenue totaled $246.7 million, about 17% above $210.2 million in the prior-year period. Adjusted EBITDA reached $76.4 million, compared with $61.1 million, while non-GAAP EPS increased to $0.80 from $0.64 based on the quarterly figures provided. A10 ended the quarter with $360.4 million in cash and marketable securities.

Service-provider demand leads the quarter

Service-provider revenue was $53.3 million in Q3, up from $26.9 million a year earlier, while enterprise revenue was $38.2 million, down from $47.8 million. For the first nine months, service providers accounted for 58% of revenue and enterprise customers represented 42%. A10 also said quarterly revenue grew at a double-digit rate when its largest customer was excluded.

The Americas generated 64% of third-quarter revenue, APJ accounted for 21% and EMEA contributed 15%. For the year-to-date period, the respective shares were 66%, 20% and 14%.

Management highlighted the company’s role in supporting next-generation infrastructure and applications, including artificial intelligence workloads for Fortune 500 enterprises such as telecommunications companies, banks and utilities. A10’s portfolio is positioned around AI application delivery and connectivity, infrastructure protection, encrypted-traffic visibility, and AI security and governance. Its products include traffic management, distributed-workload optimization, DDoS mitigation, and web and API protection.

2029 targets set out organic growth ambitions

A10 established a 2029 target of $500 million in revenue from organic growth, implying an approximately 14% compound annual growth rate from its 2026 guidance. It also targets non-GAAP EPS of $2.00 in 2029, representing an approximately 22% compound annual growth rate from the midpoint of its 2026 guidance.

The outlook remains subject to execution and demand risks. The company cited the possibility of customer order cancellations or delays, the loss or postponement of purchases by major end customers, supply-chain interruptions, changing global trade rules, weaker macroeconomic or political conditions, and variations in product or geographic mix. A10 also identified competitive risks, product-development execution, adoption of its offerings, sales and channel performance, and the need to manage expenses and sustain profitability as factors that could cause actual results to differ from management’s expectations.