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

A10 Networks (NYSE:ATEN) 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 quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.24 earnings per share. 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 Price Performance

ATEN stock traded up $0.22 during mid-day trading on Wednesday, reaching $17.49. 774,520 shares of the company’s stock were exchanged, compared to its average volume of 593,324. The company has a debt-to-equity ratio of 1.06, a current ratio of 3.64 and a quick ratio of 3.49. A10 Networks has a 12-month low of $13.81 and a 12-month high of $21.90. The stock’s 50 day moving average is $17.68 and its 200 day moving average is $17.73. The company has a market cap of $1.25 billion, a price-to-earnings ratio of 23.66 and a beta of 1.23.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Tower Research Capital LLC TRC grew its stake in A10 Networks by 120.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,898 shares of the communications equipment provider’s stock valued at $114,000 after acquiring an additional 3,225 shares during the period. State of Wyoming lifted its holdings in A10 Networks by 346.7% during the second quarter. State of Wyoming now owns 13,545 shares of the communications equipment provider’s stock valued at $262,000 after purchasing an additional 10,513 shares in the last quarter. Brooklyn Investment Group grew its position in shares of A10 Networks by 3,390.9% in the third quarter. Brooklyn Investment Group now owns 14,627 shares of the communications equipment provider’s stock valued at $265,000 after purchasing an additional 14,208 shares during the period. Quantinno Capital Management LP increased its stake in shares of A10 Networks by 22.9% during the second quarter. Quantinno Capital Management LP now owns 15,738 shares of the communications equipment provider’s stock worth $305,000 after purchasing an additional 2,935 shares in the last quarter. Finally, Squarepoint Ops LLC raised its position in shares of A10 Networks by 61.1% during the 3rd quarter. Squarepoint Ops LLC now owns 19,981 shares of the communications equipment provider’s stock worth $363,000 after purchasing an additional 7,577 shares during the last quarter. Hedge funds and other institutional investors own 98.61% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms recently commented on ATEN. Wall Street Zen lowered A10 Networks from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of A10 Networks in a research note on Wednesday, January 21st. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $22.00.

Trending Headlines about A10 Networks

Here are the key news stories impacting A10 Networks this week:

• Positive Sentiment: Record Q4 revenue and strong margins: A10 reported record Q4 revenue of $80.4M (up ~8.3% YoY), GAAP gross margin ~78.7% and non‑GAAP gross margin ~80.8%, with non‑GAAP net income of $19.1M ($0.26/sh). These top-line strength and margin metrics support growth narrative and helped drive investor interest. Business Wire Release
• Positive Sentiment: Upgraded revenue outlook and AI demand commentary: Management is targeting 10%–12% revenue growth for 2026 and set FY‑2026 revenue guidance of $319.6M–$325.4M, above consensus — management cites AI‑driven demand for secure application services as a growth driver. That revenue upside is a key reason shares reacted positively. Seeking Alpha Article
• Neutral Sentiment: Earnings in line with estimates: Non‑GAAP EPS of $0.26 matched consensus and revenue showed steady YoY growth; full call transcript and slide deck are available for detail — this reduces surprise risk but limits an upside catalyst from an EPS beat. Earnings Transcript
• Negative Sentiment: EPS guidance below some street estimates: A10 issued FY‑2026 EPS guidance of $0.64–$0.65, which is below certain consensus levels cited in reports (one reference noted consensus ~$0.83). The lower EPS guide could cap near‑term upside and introduce volatility as investors re‑model margins and profitability. Investing.com Coverage

A10 Networks Company Profile

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.