Abstract
A10 Networks will report its quarterly results on February 04, 2026 Post Market; this preview highlights consensus expectations for revenue, profitability, and adjusted EPS, alongside the dominant institutional stance for the period from January 01, 2026 to January 28, 2026.
Market Forecast
Based on the latest forecasts, A10 Networks’ current quarter revenue is estimated at USD 78.09 million, representing an estimated year-over-year growth of 8.72%. Forecast EBIT is USD 19.46 million with an estimated year-over-year growth of 1.92%, and forecast adjusted EPS is USD 0.24, with an estimated year-over-year growth of 7.01%. There is no explicit forecast for gross profit margin or net profit margin, but recent trends suggest stable margins near last quarter’s levels. The main business is expected to maintain a balanced revenue mix between product and services, with services offering steadier recurring contributions and product tied to periodic refresh cycles. The services segment appears most promising due to recurring maintenance and subscription dynamics; its last quarter revenue was USD 31.57 million, and the year-over-year trajectory has been consistently supportive even without a specific percentage disclosed here.
Last Quarter Review
A10 Networks’ previous quarter delivered revenue of USD 74.68 million, a gross profit margin of 80.14%, GAAP net profit attributable to the parent company of USD 12.19 million, a net profit margin of 16.32%, and adjusted EPS of USD 0.23; year-over-year growth on revenue was 11.93%, adjusted EPS grew 9.52%, and EBIT increased 22.57%. A notable highlight was stronger-than-expected operational performance, with EBIT reaching USD 18.46 million and surpassing estimates by USD 2.11 million, indicating efficient cost execution and disciplined expense control. Main business performance showed USD 43.11 million from products and USD 31.57 million from services, reflecting a diversified revenue base with services providing resilience; year-over-year momentum was positive as total revenue rose 11.93%.
Current Quarter Outlook
Main Business: Application and Network Security Solutions
A10 Networks’ core business spans application delivery, DDoS protection, and secure networking products supplemented by a growing services portfolio. For the quarter to be reported, the model embeds revenue at USD 78.09 million and adjusted EPS at USD 0.24, implying modest operating leverage if gross margin sustains near 80.14%. The product mix historically drives quarter-to-quarter variability due to enterprise and service provider refresh cycles, while services stabilize overall performance through renewals and maintenance. With EBIT forecast at USD 19.46 million, management’s cost discipline and the company’s high gross margin structure suggest profitability can remain durable even amid mixed macro procurement timing.
Most Promising Segment: Services and Recurring Revenue Streams
The services segment, which recorded USD 31.57 million last quarter, remains a key driver for predictable cash flows through maintenance contracts and subscriptions. The recurring nature tends to support both margin stability and earnings visibility, particularly when hardware purchasing patterns fluctuate. As the installed base grows and adoption of security features deepens, attach rates and renewal levels contribute incrementally to revenue, consistent with the forecasted top-line expansion of 8.72%. If services mix rises even modestly, it could uplift blended profitability, given the segment’s favorable unit economics relative to hardware-intensive product revenue.
Key Stock Price Drivers This Quarter
Near-term stock performance is likely influenced by how revenue tracks versus the USD 78.09 million forecast, the sustainability of the gross profit margin near 80.14%, and whether adjusted EPS lands at or above USD 0.24. Management commentary around enterprise and service provider demand, particularly in security refresh and DDoS mitigation projects, will inform expectations for the next few quarters. Order linearity and backlog conversion are additional watch points; any signals of elongated sales cycles or project delays could challenge sentiment, whereas evidence of healthy pipelines and renewal strength would underpin the cautiously positive institutional stance. Cash generation aligned with EBIT and disciplined operating expenses would further validate the margin framework and reduce concerns about quarterly volatility.
Analyst Opinions
Across recent institutional remarks, the majority view is cautiously positive, leaning bullish on steady revenue growth and margin resilience. Commentary highlights confidence in services-driven stability and manageable product cycle variability, with expectations centered on meeting or slightly exceeding the USD 78.09 million revenue and USD 0.24 EPS forecasts. Analysts emphasize the company’s consistent execution against high gross margin targets and disciplined expense management, supporting the 1.92% EBIT year-over-year increase and 7.01% EPS growth outlook. On balance, the cautious-bullish stance anticipates in-line to modestly better results, with the services segment’s recurring dynamics seen as a foundation for earnings consistency, while hardware demand timing remains the swing factor that could drive variance around quarterly numbers.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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