A10 Networks (NYSE:ATEN) Issues Earnings Results

A10 Networks (NYSE:ATEN) issued its earnings results on Wednesday. The communications equipment provider reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.01, FiscalAI reports. A10 Networks had a net margin of 14.90% and a return on equity of 25.00%. The company had revenue of $80.14 million during the quarter, compared to analyst estimates of $77.28 million. 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 Stock Performance

Shares of ATEN stock traded up $0.35 during trading on Wednesday, reaching $31.05. The company had a trading volume of 1,632,166 shares, compared to its average volume of 1,071,271. The firm’s 50 day simple moving average is $33.69 and its two-hundred day simple moving average is $26.60. The company has a debt-to-equity ratio of 0.99, a current ratio of 3.71 and a quick ratio of 3.56. A10 Networks has a one year low of $16.52 and a one year high of $38.49. The company has a market capitalization of $2.24 billion, a PE ratio of 50.08 and a beta of 1.16.

Institutional Investors Weigh In On A10 Networks

Large investors have recently added to or reduced their stakes in the stock. Aster Capital Management DIFC Ltd bought a new position in shares of A10 Networks in the fourth quarter valued at approximately $26,000. Parkside Financial Bank & Trust grew its stake in A10 Networks by 4,621.6% in the 4th quarter. Parkside Financial Bank & Trust now owns 2,408 shares of the communications equipment provider’s stock valued at $43,000 after buying an additional 2,357 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in A10 Networks by 120.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,898 shares of the communications equipment provider’s stock valued at $114,000 after buying an additional 3,225 shares during the last quarter. Graham Capital Management L.P. bought a new position in A10 Networks in the 4th quarter worth $178,000. Finally, Pacer Advisors Inc. raised its holdings in A10 Networks by 46.4% in the 4th quarter. Pacer Advisors Inc. now owns 13,592 shares of the communications equipment provider’s stock worth $240,000 after acquiring an additional 4,305 shares during the period. Institutional investors own 98.61% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Zacks Research lowered A10 Networks from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Wall Street Zen lowered A10 Networks from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. BTIG Research increased their price objective on A10 Networks from $30.00 to $37.00 and gave the stock a “buy” rating in a report on Thursday, June 18th. Sidoti reaffirmed a “neutral” rating and set a $24.00 price objective on shares of A10 Networks in a research report on Monday, April 20th. Finally, Mizuho lifted their target price on shares of A10 Networks from $30.00 to $34.00 and gave the company a “neutral” rating in a research note on Wednesday, July 15th. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, A10 Networks has an average rating of “Hold” and an average target price of $31.29.

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.