NETGEAR beats Q4 revenue expectations

NetGear

04/02/2026 21:20

Overview

Networking solutions provider's Q4 revenue flat yr/yr, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company repurchased $50 mln of shares in 2025

Outlook

NETGEAR expects Q1 2026 revenue between $145 mln and $160 mln

Company anticipates Q1 2026 GAAP operating margin of (16.3)% to (13.3)%

NETGEAR forecasts Q1 2026 non-GAAP operating margin of (6.0)% to (3.0)%

Result Drivers

ENTERPRISE SEGMENT - Revenue grew 10.6% yr/yr, driven by strong demand for ProAV solutions and improved supply position

CONSUMER SEGMENT - Revenue declined 8.4% yr/yr, but improved product mix and cost performance boosted margins

SOFTWARE INNOVATION - Co focused on software-led innovation and partner engagement to drive future growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$182.47 mln
$177.25 mln (3 Analysts)
Q4 Adjusted EPS
Beat
$0.26
$0.05 (3 Analysts)
Q4 Net Income
-$684,000
Q4 Gross Margin
40.40%
Q4 Gross Profit
$73.64 mln
Q4 Operating Income
-$4.74 mln
Q4 Operating Margin
-2.60%
Q4 Pretax Profit
-$2.54 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for NETGEAR Inc is $40.00, about 90.9% above its February 3 closing price of $20.95

The stock recently traded at 84 times the next 12-month earnings vs. a P/E of 131 three months ago

Press Release: ID:nBwbCLYlRa

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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.)