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A10 Networks
(NYSE:ATEN)
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Rating:67Neutral
Price Target:
$33.00
▼(-3.71% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid underlying financial performance (high margins and steady cash generation) and a notably positive earnings update with raised guidance and strong Q2 execution. These positives are tempered by weak current technical momentum (below key moving averages with negative MACD) and a relatively expensive valuation (high P/E with a modest dividend yield).
Positive Factors
Accelerating revenue growth and raised guidance
Double-digit growth and a raised full-year outlook indicate stronger product demand and execution. Sustained adoption across enterprise, networking and security customers could improve revenue visibility over the next several quarters.
Negative Factors
Uneven growth and margin compression
The longer-term revenue trajectory has been inconsistent, and lower operating and net margins than prior peaks suggest pricing, mix or expense pressure. Continued execution is needed to convert recent growth into durable expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue growth and raised guidance
Double-digit growth and a raised full-year outlook indicate stronger product demand and execution. Sustained adoption across enterprise, networking and security customers could improve revenue visibility over the next several quarters.
Read all positive factors
A10 Networks Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyA10 Networks (ATEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.90B
Dividend Yield0.92%
Average Volume (3M)1.23M
Price to Earnings (P/E)43.5
Beta (1Y)0.96
Revenue Growth12.20%
EPS Growth-13.97%
CountryUS
Employees494
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.60
Shares Outstanding72,609,024
10 Day Avg. Volume1,147,057
30 Day Avg. Volume1,231,189
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)6.04
Price to Sales (P/S)4.40
P/FCF Ratio19.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.50Price Target Upside12.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.04
Revenue Forecast (FY)$329.01M
A10 Networks Business Overview & Revenue Model
Company Description
A10 Networks, Inc. delivers networking solutions across global markets, including North and South America, Japan, the broader Asia Pacific region, and Europe, the Middle East, and Africa (EMEA). The company's product suite features the Thunder App...
How the Company Makes Money
A10 Networks primarily makes money by selling its application security and infrastructure products and the related ongoing support and services. Key revenue streams include: (1) Product revenue from licensing and selling its software and hardware-...
A10 Networks Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: double-digit revenue growth, strong margins and EBITDA, robust cash generation, raised full-year guidance, strategic progress with Microsoft and the Troj.ai acquisition, and continued product/enterprise traction. The primary negatives were manageable near-term supply-chain and memory cost pressures, regional service-provider softness (EMEA and Japan), and customer concentration risk tied to large accounts. On balance, the positive drivers (growth, margin expansion, cash flow, guidance raise, strategic partnerships and M&A) materially outweigh the listed challenges.Positive Updates
Strong Top-Line Growth and Raised Guidance
Q2 revenue of $80.1M, up 15.5% year-over-year; year-to-date revenue $155.1M, up 14.5% YTD. Management raised full-year 2026 revenue guidance to +12% to +14% (from prior 10%–12%) and raised EPS growth guidance to +14% to +16% (from prior 12%–14%).
Negative Updates
Supply Chain and Component Cost Pressure
Ongoing cost and delivery challenges related to memory pricing and supply chain constraints were noted; management said these dynamics are expected to persist for multiple quarters and represent an uncertainty for near-term cost and delivery.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth and Raised Guidance
Q2 revenue of $80.1M, up 15.5% year-over-year; year-to-date revenue $155.1M, up 14.5% YTD. Management raised full-year 2026 revenue guidance to +12% to +14% (from prior 10%–12%) and raised EPS growth guidance to +14% to +16% (from prior 12%–14%).
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance, now targeting revenue growth of 12–14% (up from 10–12%) and EPS growth of 14–16% (up from 12–14%), citing Q2 performance that included revenue of $80.1M (+15.5% YoY) and YTD revenue of $155.1M (+14.5%); Q2 product revenue was $49.0M (61% of total) and services $31.1M (39%). Supporting metrics included non‑GAAP gross margin of 80.3%, operating expenses of $43.9M, operating margin of 25.5%, adjusted EBITDA of $25.4M (30.5% of revenue), net income of $18.7M, diluted EPS of $0.25 on a 75.7M diluted share count, Q2 free cash flow of $26.9M (YTD $20.2M) with full‑year FCF expected to grow versus ~ $65M in 2025, cash and marketable securities of $357.3M, deferred revenue of $104.8M, $6.7M returned to shareholders in the quarter ($4.3M dividends, $2.4M repurchases), a $0.06/share quarterly dividend approved, and $53M remaining on a $75M repurchase authorization.A10 Networks Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 310.17M | 290.56M | 261.70M | 251.70M | 280.34M | 250.04M |
| Gross Profit | 246.71M | 230.51M | 210.28M | 203.74M | 223.51M | 196.54M |
| EBITDA | 67.89M | 67.28M | 76.78M | 53.14M | 61.76M | 42.70M |
| Net Income | 42.97M | 42.14M | 50.14M | 39.97M | 46.91M | 94.89M |
Balance Sheet | ||||||
| Total Assets | 677.68M | 629.81M | 432.81M | 389.81M | 369.11M | 393.08M |
| Cash, Cash Equivalents and Short-Term Investments | 357.35M | 377.85M | 195.56M | 159.30M | 150.99M | 185.04M |
| Total Debt | 219.52M | 222.63M | 11.94M | 16.82M | 21.64M | 23.30M |
| Total Liabilities | 439.71M | 418.27M | 200.99M | 181.93M | 188.09M | 184.20M |
| Stockholders Equity | 237.97M | 211.55M | 231.83M | 207.88M | 181.01M | 208.89M |
Cash Flow | ||||||
| Free Cash Flow | 60.94M | 64.77M | 78.22M | 33.62M | 55.30M | 44.93M |
| Operating Cash Flow | 76.86M | 84.89M | 90.49M | 44.51M | 66.10M | 50.10M |
| Investing Cash Flow | -238.41M | -243.64M | -48.35M | 13.61M | 11.09M | -38.07M |
| Financing Cash Flow | -36.69M | 134.75M | -44.26M | -28.85M | -88.14M | -16.38M |
A10 Networks Technical Analysis
Negative
34.27
Price Trends
32.49
Negative
30.03
Negative
24.32
Positive
Market Momentum
-1.94
Positive
33.71
Neutral
18.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEN, the sentiment is Negative. The current price of 34.27 is above the 20-day moving average (MA) of 28.34, above the 50-day MA of 32.49, and above the 200-day MA of 24.32, indicating a neutral trend. The MACD of -1.94 indicates Positive momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEN.
A10 Networks Risk Analysis
A10 Networks disclosed 59 risk factors in its most recent earnings report. A10 Networks reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
A10 Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.80B | 23.05 | 7.42% | ― | 5.79% | 65.56% | |
72 Outperform | $1.06B | 17.54 | 6.22% | 6.94% | 5.43% | 208.11% | |
67 Neutral | $1.90B | 43.53 | 19.61% | 0.70% | 12.20% | -13.97% | |
65 Neutral | $1.17B | 70.90 | 5.05% | ― | 9.98% | 18.53% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $798.70M | 38.88 | 12.33% | ― | 0.07% | -33.38% |
* Technology Sector Average
ATEN
A10 Networks
26.12
9.07
53.23%
NTCT
Netscout Systems
38.49
15.35
66.34%
RDWR
Radware
27.85
3.14
12.71%
RPD
Rapid7
11.85
-8.32
-41.25%
TUYA
Tuya
1.80
-0.64
-26.29%
A10 Networks Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
A10 Networks Files Shelf Prospectus to Enable Capital Raising
Neutral
Aug 7, 2026
On August 6, 2026, A10 Networks, Inc. filed a prospectus supplement to its automatic shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission, signaling potential future issuance and sale of securities. The company...
Business Operations and StrategyPrivate Placements and Financing
A10 Networks Issues Strategic Equity Warrant to Microsoft
Positive
Aug 5, 2026
On August 3, 2026, A10 Networks issued a warrant to Microsoft Corporation allowing Microsoft to purchase up to 800,000 shares of A10’s common stock at an exercise price of $0.01 per share, subject to vesting terms tied to Microsoft’s p...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
A10 Networks Raises Outlook Amid Strong Q2 Results
Positive
Aug 5, 2026
On August 5, 2026, A10 Networks reported second-quarter 2026 results showing revenue of $80.1 million, up 15.5% year over year, and first-half revenue of $155.1 million, a 14.5% increase from 2025, supported by strong Americas execution and next-g...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.