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

A10 Networks (NYSE:ATEN) issued its quarterly earnings results on Wednesday. The communications equipment provider reported $0.26 EPS for the quarter, hitting the consensus estimate of $0.26, FiscalAI reports. The company had revenue of $80.36 million for the quarter, compared to the consensus estimate of $78.09 million. A10 Networks had a return on equity of 25.87% and a net margin of 17.78%.The company’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period 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 ATEN opened at $17.49 on Thursday. The firm has a market cap of $1.25 billion, a P/E ratio of 25.72 and a beta of 1.23. A10 Networks has a twelve month low of $13.81 and a twelve month high of $21.90. The firm’s 50 day moving average price is $17.68 and its two-hundred day moving average price is $17.73. The company has a debt-to-equity ratio of 1.06, a quick ratio of 3.49 and a current ratio of 3.64.

A10 Networks Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Shareholders of record on Monday, February 16th will be issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 1.4%. The ex-dividend date is Friday, February 13th. A10 Networks’s dividend payout ratio (DPR) is 35.29%.

Institutional Investors Weigh In On A10 Networks

A number of hedge funds and other institutional investors have recently bought and sold shares of ATEN. Aquatic Capital Management LLC bought a new position in shares of A10 Networks in the 3rd quarter valued at about $456,000. Creative Planning increased its position in A10 Networks by 108.0% during the third quarter. Creative Planning now owns 44,764 shares of the communications equipment provider’s stock worth $812,000 after buying an additional 23,246 shares during the last quarter. Brevan Howard Capital Management LP acquired a new position in A10 Networks during the second quarter worth approximately $773,000. The Manufacturers Life Insurance Company raised its stake in A10 Networks by 2.1% in the second quarter. The Manufacturers Life Insurance Company now owns 36,438 shares of the communications equipment provider’s stock valued at $705,000 after buying an additional 737 shares during the period. Finally, Nebula Research & Development LLC lifted its position in shares of A10 Networks by 10.2% in the second quarter. Nebula Research & Development LLC now owns 36,157 shares of the communications equipment provider’s stock valued at $700,000 after buying an additional 3,361 shares during the last quarter. Institutional investors and hedge funds own 98.61% of the company’s stock.

Wall Street Analysts Forecast Growth

ATEN has been the topic of a number of recent research reports. Wall Street Zen downgraded A10 Networks from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Weiss Ratings restated 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 issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.00.

Key Stories Impacting 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.