A10 Networks (NYSE:ATEN) Posts Earnings Results, Meets Expectations

A10 Networks (NYSE:ATEN) posted its earnings results on Wednesday. The communications equipment provider reported $0.26 EPS for the quarter, hitting analysts’ consensus estimates of $0.26, FiscalAI reports. The business had revenue of $80.36 million during the quarter, compared to the consensus estimate of $78.09 million. A10 Networks had a net margin of 14.50% and a return on equity of 24.39%. The firm’s revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.24 EPS. A10 Networks updated its FY 2026 guidance to 0.640-0.650 EPS.

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

• A10 reported record quarterly and full-year results, with $80.4 million in Q4 revenue and $290.6 million for FY2025, driven by strong growth in the Americas.
• Profitability and cash metrics strengthened—record adjusted EBITDA of $86 million (29.6% of revenue), non‑GAAP gross margin ~80.6–80.8%, Q4 free cash flow of $16 million, and $378 million in cash plus ongoing buybacks and a quarterly dividend.
• The company hit its target for security-led revenue (≈65% of Q4 and 72% for the year) and says its portfolio is well positioned for AI infrastructure needs (high throughput, low latency, encrypted-traffic management).
• Management guided 2026 for continued top- and bottom-line growth—revenue growth of 10%–12%, gross margins in the 80%–82% range, expanding EBITDA margins, and EPS growth outpacing revenue.
• Risks include regional weakness in APJ (notably Japan) and supply-chain pressures (memory/components, tariffs); management expects to mitigate impacts but said these factors could weigh on visibility.

A10 Networks Stock Performance

Shares of ATEN stock opened at $19.26 on Friday. A10 Networks has a 12-month low of $13.81 and a 12-month high of $21.90. The business’s fifty day simple moving average is $17.72 and its 200-day simple moving average is $17.74. The company has a current ratio of 3.64, a quick ratio of 3.49 and a debt-to-equity ratio of 1.06. The company has a market cap of $1.38 billion, a PE ratio of 33.20 and a beta of 1.23.

A10 Networks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Monday, February 16th will be paid a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Friday, February 13th. A10 Networks’s payout ratio is 35.29%.

Hedge Funds Weigh In On A10 Networks

Hedge funds have recently modified their holdings of the stock. Tower Research Capital LLC TRC increased its position in shares of 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 acquiring an additional 3,225 shares during the period. State of Wyoming increased its holdings in A10 Networks by 346.7% in the 2nd quarter. State of Wyoming now owns 13,545 shares of the communications equipment provider’s stock worth $262,000 after buying an additional 10,513 shares during the period. Brooklyn Investment Group raised its position in A10 Networks by 3,390.9% during the 3rd quarter. Brooklyn Investment Group now owns 14,627 shares of the communications equipment provider’s stock worth $265,000 after buying an additional 14,208 shares during the last quarter. Quantinno Capital Management LP raised its stake in shares of A10 Networks by 22.9% during the 2nd quarter. Quantinno Capital Management LP now owns 15,738 shares of the communications equipment provider’s stock valued at $305,000 after buying an additional 2,935 shares during the last quarter. Finally, Squarepoint Ops LLC lifted its holdings in A10 Networks by 61.1% in the third quarter. Squarepoint Ops LLC now owns 19,981 shares of the communications equipment provider’s stock valued at $363,000 after acquiring an additional 7,577 shares during the period. Institutional investors and hedge funds own 98.61% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently commented on ATEN. Weiss Ratings reiterated a “hold (c+)” rating on shares of A10 Networks in a research report on Wednesday, January 21st. BTIG Research restated a “buy” rating and set a $22.00 target price on shares of A10 Networks in a research report on Thursday. Finally, Wall Street Zen lowered A10 Networks from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $22.00.

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.