NETGEAR (NASDAQ:NTGR) Posts Earnings Results, Beats Estimates By $0.14 EPS

NETGEAR (NASDAQ:NTGR) issued its quarterly earnings data on Wednesday. The communications equipment provider reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.14, FiscalAI reports. The business had revenue of $158.82 million for the quarter, compared to analyst estimates of $152.49 million. NETGEAR had a negative return on equity of 2.40% and a negative net margin of 2.56%.The firm’s revenue for the quarter was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.02 EPS.

Here are the key takeaways from NETGEAR’s conference call:

• Q1 revenue was $158.8M (down 2% YoY) but NETGEAR delivered a record non-GAAP gross margin of 41.7% and non-GAAP EPS of $0.06, driven by a larger enterprise mix and operational discipline.
• The company secured DDR4 memory supply for most of 2026 but expects memory cost headwinds — ~100 basis points hit in Q1, neutralized in Q2 by mitigations, and a further ~200 basis point consolidated margin pressure in the back half that will disproportionately affect consumer results.
• Enterprise momentum continues: Pro AV managed switches saw double-digit end-user demand, enterprise revenue mix rose to ~53% of total, enterprise gross margin hit a record 52.7%, partner ecosystem expanded to 577 partners, and the company is growing non-device offerings (Insight 10.0, paid support/services) supported by acquisitions VAAG and Exium.
• Consumer strategy is being optimized for margin not top-line growth — core consumer products grew 3% YoY and recurring ARR rose 12% to $39.7M (559k subscribers), while NETGEAR readies Wi‑Fi 7 releases and a Google Home/Matter integration to boost long-term services revenue.
• Capital return is active: the company repurchased ~929k shares in Q1 at an average $21.53, ended the quarter with $296.5M in cash/short-term investments, and has ~ $89M remaining under its refreshed repurchase authorization.

NETGEAR Stock Down 5.3%

Shares of NTGR stock traded down $1.38 during mid-day trading on Thursday, reaching $24.51. The stock had a trading volume of 365,285 shares, compared to its average volume of 540,886. The firm has a market cap of $670.20 million, a PE ratio of -39.44 and a beta of 1.09. NETGEAR has a one year low of $19.00 and a one year high of $36.86. The firm’s 50 day simple moving average is $22.78 and its 200 day simple moving average is $24.68.

Insider Activity at NETGEAR

In related news, insider Pramod Badjate sold 3,000 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $20.97, for a total transaction of $62,910.00. Following the completion of the transaction, the insider owned 144,586 shares in the company, valued at $3,031,968.42. This trade represents a 2.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 2.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On NETGEAR

Several hedge funds and other institutional investors have recently modified their holdings of NTGR. Amundi lifted its position in shares of NETGEAR by 99.1% during the 1st quarter. Amundi now owns 48,211 shares of the communications equipment provider’s stock worth $1,179,000 after buying an additional 23,993 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of NETGEAR by 15.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 279,874 shares of the communications equipment provider’s stock worth $6,846,000 after buying an additional 37,469 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of NETGEAR by 13.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 74,146 shares of the communications equipment provider’s stock worth $1,814,000 after buying an additional 9,021 shares during the period. Legal & General Group Plc lifted its position in shares of NETGEAR by 5.4% during the 2nd quarter. Legal & General Group Plc now owns 34,690 shares of the communications equipment provider’s stock worth $1,008,000 after buying an additional 1,788 shares during the period. Finally, Rhumbline Advisers lifted its position in shares of NETGEAR by 2.3% during the 2nd quarter. Rhumbline Advisers now owns 51,678 shares of the communications equipment provider’s stock worth $1,502,000 after buying an additional 1,140 shares during the period. Institutional investors own 82.97% of the company’s stock.

Wall Street Analysts Forecast Growth

NTGR has been the topic of a number of research analyst reports. Wall Street Zen raised NETGEAR from a “sell” rating to a “hold” rating in a report on Saturday, March 28th. Zacks Research raised NETGEAR from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 10th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of NETGEAR in a report on Friday, March 27th. Finally, Stifel Nicolaus set a $36.00 target price on NETGEAR in a report on Thursday, February 5th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $36.00.

NETGEAR Company Profile

NETGEAR, Inc (NASDAQ: NTGR) is a global provider of networking solutions for consumer, business and service provider markets. The company designs, develops and markets a comprehensive portfolio of products that enable high-speed connectivity, data storage and network security for homes, small to medium-sized businesses and large enterprises.

Its product lineup includes Wi-Fi routers, mesh networking systems, cable modems, mobile broadband gateways and Ethernet switches—offered in both managed and unmanaged configurations.