A10 Networks (NYSE:ATEN) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

A10 Networks (NYSE:ATEN) released its quarterly earnings data on Wednesday. The communications equipment provider reported $0.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.01, FiscalAI reports. The company had revenue of $80.14 million for the quarter, compared to analysts’ expectations of $77.28 million. A10 Networks had a net margin of 14.90% and a return on equity of 25.00%. The business’s revenue was up 15.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.21 EPS. A10 Networks updated its FY 2026 guidance to 0.650-0.661 EPS.

Here are the key takeaways from A10 Networks’ conference call:

• Revenue grew 15.5% year over year to $80.1 million in Q2, with product revenue up 25% and earnings per diluted share rising to $0.25 from $0.21. Management raised its 2026 revenue-growth outlook to 12%–14% from 10%–12% and EPS-growth outlook to 14%–16% from 12%–14%.
• A10 announced an expanded, long-term relationship with Microsoft, featuring mutual performance commitments and closer alignment with Microsoft’s infrastructure roadmap. Management characterized the agreement as validation of A10’s technology and said it does not involve customer pre-buys.
• AI-related traffic growth, demand for lower latency, and increasing security requirements are driving opportunities across enterprise and service-provider customers. A10 also acquired TrojAI to add AI red-teaming and runtime protection capabilities, with potential for standalone offerings and broader product bundles.
• Enterprise customers represented 60% of Q2 revenue, while service-provider demand showed regional variation: North America began improving, Europe was affected by geopolitical conditions, and Japan remained under macroeconomic pressure. Management expects service-provider revenue excluding Microsoft to be slightly better than 2025 levels.
• Supply-chain cost and delivery challenges, particularly involving memory pricing and availability, remain a risk for margins and earnings. A10 said it has managed the impact so far while prioritizing customer delivery and maintaining its EPS outlook.

A10 Networks Price Performance

Shares of NYSE ATEN opened at $31.05 on Thursday. A10 Networks has a fifty-two week low of $16.52 and a fifty-two week high of $38.49. The stock has a market cap of $2.24 billion, a price-to-earnings ratio of 50.08 and a beta of 1.16. The company has a debt-to-equity ratio of 0.99, a quick ratio of 3.56 and a current ratio of 3.71. The firm’s 50-day simple moving average is $33.73 and its 200 day simple moving average is $26.70.

A10 Networks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 17th will be issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Monday, August 17th. A10 Networks’s dividend payout ratio is currently 38.71%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ATEN. Zacks Research downgraded A10 Networks from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Mizuho raised their price objective on A10 Networks from $30.00 to $34.00 and gave the company a “neutral” rating in a research note on Wednesday, July 15th. Piper Sandler set a $45.00 price objective on A10 Networks in a report on Tuesday, June 16th. BTIG Research upped their target price on A10 Networks from $30.00 to $37.00 and gave the stock a “buy” rating in a research report on Thursday, June 18th. Finally, Sidoti reiterated a “neutral” rating and issued a $24.00 target price on shares of A10 Networks in a report on Monday, April 20th. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, A10 Networks has an average rating of “Hold” and an average target price of $31.29.

A10 Networks News Summary

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

• Positive Sentiment: A10 Networks reported second-quarter revenue of $80.1 million, up 15.5% year over year and above the $77.3 million analyst estimate. EPS was $0.25, ahead of the $0.24 consensus cited by some analysts, while first-half revenue increased 14.5% to $155.1 million. A10 Networks Reports Financial Results for the Second Quarter of 2026
• Positive Sentiment: The company declared a quarterly dividend of $0.06 per share, payable September 1 to shareholders of record August 17. The dividend implies an annualized yield of approximately 0.8% and may appeal to income-oriented investors. A10 Networks declares $0.06 dividend
• Neutral Sentiment: Brokerages established an average price target of $31.29. This is close to ATEN’s recent trading level, suggesting limited near-term upside based on currently reported targets. Brokerages Set A10 Networks Price Target at $31.29
• Negative Sentiment: A10 Networks issued fiscal 2026 EPS guidance of $0.650–$0.661, well below the $1.00 analyst consensus. Although revenue guidance of $325.4 million–$331.2 million is slightly above expectations, the earnings outlook raises concerns about margins, costs, or profitability and is the most significant pressure on ATEN shares. A10 Networks Q2 Earnings Miss Estimates

Institutional Trading of A10 Networks

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Boston Partners purchased a new position in shares of A10 Networks in the 4th quarter worth approximately $14,795,000. Wellington Management Group LLP increased its position in shares of A10 Networks by 40.2% during the third quarter. Wellington Management Group LLP now owns 2,054,213 shares of the communications equipment provider’s stock valued at $37,284,000 after acquiring an additional 588,922 shares during the last quarter. Defiance ETFs LLC bought a new stake in A10 Networks during the fourth quarter worth $10,047,000. Barclays PLC lifted its holdings in A10 Networks by 34.9% during the fourth quarter. Barclays PLC now owns 1,841,906 shares of the communications equipment provider’s stock worth $32,583,000 after acquiring an additional 476,647 shares during the period. Finally, First Trust Advisors LP boosted its position in A10 Networks by 21.1% in the fourth quarter. First Trust Advisors LP now owns 2,463,337 shares of the communications equipment provider’s stock worth $43,576,000 after purchasing an additional 429,066 shares during the last quarter. 98.61% of the stock is owned by institutional investors.

About A10 Networks

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.