Networking equipment maker NETGEAR beats Q3 revenue estimates

NetGear

29/10/2025 20:41

Overview

NETGEAR Q3 revenue rises 0.9% yr/yr, beating analyst expectations

Company achieves record gross margin of 39.1% in Q3

NETGEAR repurchases $20 mln in shares at $24.55 average price

Outlook

Company expects Q4 net revenue between $170 mln and $185 mln

NETGEAR sees Q4 GAAP operating margin between (7.3)% and (4.3)%

Company anticipates Q4 non-GAAP operating margin between (2.0)% and 1.0%

Result Drivers

ENTERPRISE SEGMENT - Strong demand for ProAV solutions drove revenue and margin growth, aided by strategic investments and supply chain management

RECORD GROSS MARGIN - Achieved record non-GAAP gross margin due to operational improvements and strategic transformation efforts

HOME NETWORKING - Favorable product mix and strong performance of WiFi 7 products supported segment results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$184.56 mln
$172.46 mln (2 Analysts)
Q3 Net Income
-$4.78 mln
Q3 Gross Margin
39.10%
Q3 Gross Profit
$72.25 mln
Q3 Operating Income
-$7.07 mln
Q3 Operating Margin
-3.80%
Q3 Pretax Profit
-$4.04 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 15.2% above its October 28 closing price of $33.91

Press Release: ID:nBw8q2QrQa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)