A10 Raises Full-Year Growth Outlook After Faster Quarter

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter revenue reached $80.1 million, up 15.5%, and the company lifted 2026 revenue-growth guidance to 12-14% from 10-12%.

A10 Networks, Inc. (ATEN) raised its full-year 2026 revenue-growth outlook to 12-14% from the 10-12% range it reiterated after the first quarter, citing first-half performance and visibility into the rest of the year.

The secure application-services provider also lifted its full-year earnings-per-share growth outlook to 14-16% from 12-14%.

Quarterly revenue was $80.1 million, a 15.5% year-over-year increase, after $75.0 million in the first quarter, which had risen 13.4%. Revenue for the first six months of 2026 was $155.1 million, compared with $135.5 million a year earlier, an increase of about 14.5%.

President and Chief Executive Officer Dhrupad Trivedi said the company continued to solidify its position in security-focused next-generation networking supporting AI-related infrastructure. He said a new multi-year agreement with Microsoft reflects a long-standing relationship and is structured so deployment can scale. The company completed the TrojAI acquisition in June.

Product revenue was $49.0 million and services revenue was $31.1 million in the quarter. By geography, the Americas accounted for 68% of revenue, APJ 21%, and EMEA 11%. Service Provider revenue was $48.0 million and Enterprise revenue was $32.1 million.

GAAP gross margin was 79.1%; non-GAAP gross margin was 80.3%. GAAP net income was $8.9 million, or $0.12 a share, down from $12.0 million, or $0.17 a share, in the first quarter. Non-GAAP net income was $18.7 million, or $0.25 a share.

GAAP operating income was $9.0 million, an 11.3% operating margin, versus $10.3 million, or a 14.9% margin, a year earlier. Non-GAAP operating margin was 25.5%. Adjusted EBITDA was $24.4 million, or 30.5% of revenue, versus $22.5 million, or 30.0% of revenue, in the first quarter.

Sales and marketing expense was $21.9 million, research and development expense was $21.2 million, and general and administrative expense was $11.3 million. Stock-based compensation and related payroll tax in the quarter was $9.3 million.

The company returned $6.7 million to investors, having repurchased 86,115 shares at an average price of $27.63 for $2.4 million and paid $4.3 million in cash dividends. The board approved a quarterly cash dividend of $0.06 a share, payable September 1, 2026.

Cash, cash equivalents, and marketable securities were $357.3 million as of June 30, 2026. Short-term debt, net, was $219.5 million at quarter-end, with long-term debt, net, at zero. Inventory was $31.7 million.

Trivedi said the model has continued to convert growth into profitability, cash generation, and the return of capital. Management increased the full-year outlook based on first-half performance and demand visibility.