A10 Networks Posts Record Quarterly Revenue, Beats Estimates and Raises 2026 Outlook
A10 Networks Inc (NYSE:ATEN) closed its 2025 fiscal year on a high note, reporting fourth-quarter financial results that surpassed analyst expectations and providing an optimistic growth forecast for the year ahead. The company, a provider of secure application services, highlighted strong demand tied to artificial intelligence infrastructure and data center deployments as key growth drivers.
Earnings and Revenue Performance Versus Estimates
The company’s performance for the quarter ended December 31, 2025, exceeded consensus estimates on both the top and bottom lines.
- Revenue: A10 reported record quarterly revenue of $80.4 million, surpassing the analyst estimate of $79.7 million.
- Earnings Per Share (Non-GAAP): The company posted non-GAAP EPS of $0.26, beating the estimated $0.242.
For the full 2025 fiscal year, revenue reached a record $290.6 million, representing an 11% increase year-over-year. Non-GAAP net income for the year was $66.3 million, or $0.90 per diluted share.
Market Reaction and Shareholder Returns
Following the earnings release, A10 Networks' stock saw positive after-hours movement, reflecting investor approval of the results and forward guidance. The immediate market reaction suggests the beat and raise narrative was well-received.
The company has been actively returning capital to shareholders. In the fourth quarter alone, A10 returned $11.2 million through a combination of share repurchases and dividends. For the full year, total capital returned to investors amounted to $86.3 million. The Board also approved a continued quarterly cash dividend of $0.06 per share.
Key Highlights from the Quarterly Report
Beyond the headline numbers, management emphasized several strategic and operational successes:
- Security-Led Growth: CEO Dhrupad Trivedi noted that security-led revenue has achieved the company’s target model, now constituting two-thirds of total revenue and driving consistent growth.
- Strong Profitability Metrics: The company maintained robust gross margins, with a non-GAAP gross margin of 80.8% for the quarter. Full-year non-GAAP Adjusted EBITDA reached a record $86.0 million, representing a 29.6% margin.
- Fortified Balance Sheet: Cash, cash equivalents, and marketable securities grew significantly to $377.8 million as of year-end, up from $195.5 million a year prior, providing substantial financial flexibility.
Forward-Looking Guidance Versus Analyst Expectations
Management provided an outlook for 2026 that calls for an acceleration in growth, which appears to align with or exceed current analyst projections.
- Revenue Growth: A10 expects full-year 2026 revenue growth of 10-12% over 2025. Based on the 2025 revenue of $290.6 million, this implies a 2026 revenue range of approximately $319.7 million to $325.5 million. This outlook compares to the current analyst consensus sales estimate for 2026 of $317.9 million.
- EPS Growth: The company forecasts EPS growth of 12-14% year-over-year, exceeding its expected revenue growth rate. This suggests a focus on operational leverage and expanding profitability.
For a detailed breakdown of future quarterly and annual estimates, you can review the earnings and estimates page for A10 Networks here.
Conclusion
A10 Networks delivered a solid finish to its fiscal year, beating quarterly estimates and setting a confident tone for 2026. The company’s strategic positioning in secure, high-performance networking for AI and data center workloads is translating into tangible financial results, characterized by record revenue, strong margins, and significant cash generation. The raised guidance for the coming year, coupled with a consistent capital return program, provides a clear narrative for sustained growth and shareholder value.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
