A10 Networks Q2 revenue beats estimates; FY outlook raised

A10 Networks

05/08/2026 22:09

Overview
Secure networking provider's Q2 revenue rose 15.5% yr/yr, beating analyst expectations
Company raised full-year revenue and EPS growth guidance
A10 repurchased $2.4 mln in shares and declared a $0.06/share quarterly dividend

Outlook
A10 Networks raises full-year revenue growth outlook to 12-14% from 10-12%
Company now expects full-year EPS growth of 14-16%, up from 12-14% previously

Result Drivers
AI INFRASTRUCTURE DEMAND - Co said increased demand for next-generation networking supporting AI-related infrastructure drove revenue growth
MICROSOFT AGREEMENT - New multi-year agreement with Microsoft cited as validation of value in scaled AI deployments
TROJAI ACQUISITION - Acquisition of TrojAI in June expanded portfolio for next-generation networking and critical applications

Company press release: ID:nBw7zHLKXa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Total Net Revenue
Beat
$80.14 mln
$77.28 mln (6 Analysts)
Q2 Net Income
 
$8.88 mln
 
Q2 EBIT
 
$9.02 mln
 
Q2 Gross Profit
 
$63.38 mln
 
Q2 Operating Expenses
 
$54.36 mln
 
Q2 Pretax Profit
 
$9.92 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $34.00, about 10.7% above its August 4 closing price of $30.70
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads
Aug 4 - Arista forecasts upbeat quarterly revenue on AI-driven networking demand
Aug 5 - Extreme Networks Q4 revenue beats on increased AI platform demand
Aug 4 - DigitalOcean forecast beats Wall Street estimates on AI boom strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)