Overview
Networking solutions provider's Q4 revenue flat yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company repurchased $50 mln of shares in 2025
Outlook
NETGEAR expects Q1 2026 revenue between $145 mln and $160 mln
Company anticipates Q1 2026 GAAP operating margin of (16.3)% to (13.3)%
NETGEAR forecasts Q1 2026 non-GAAP operating margin of (6.0)% to (3.0)%
Result Drivers
ENTERPRISE SEGMENT - Revenue grew 10.6% yr/yr, driven by strong demand for ProAV solutions and improved supply position
CONSUMER SEGMENT - Revenue declined 8.4% yr/yr, but improved product mix and cost performance boosted margins
SOFTWARE INNOVATION - Co focused on software-led innovation and partner engagement to drive future growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $182.47 mln | $177.25 mln (3 Analysts) |
Q4 Adjusted EPS | Beat | $0.26 | $0.05 (3 Analysts) |
Q4 Net Income | -$684,000 | ||
Q4 Gross Margin | 40.40% | ||
Q4 Gross Profit | $73.64 mln | ||
Q4 Operating Income | -$4.74 mln | ||
Q4 Operating Margin | -2.60% | ||
Q4 Pretax Profit | -$2.54 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for NETGEAR Inc is $40.00, about 90.9% above its February 3 closing price of $20.95
The stock recently traded at 84 times the next 12-month earnings vs. a P/E of 131 three months ago
Press Release: ID:nBwbCLYlRa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)