A10 Raises 2026 Revenue Growth Outlook to About 16%

The Tip Desk · November 11, 2026 · 2 min read

Third-quarter revenue reached a record $91.5 million as year-over-year growth accelerated to 22.6% and the company lifted full-year revenue and EPS guidance.

A10 Networks (ATEN), a provider of secure application services and solutions, reported third-quarter revenue of $91.5 million, a 22.6% year-over-year increase that accelerated from 15.5% growth in the second quarter and 13.4% in the first quarter.

The company said the sequential pickup reflected broad-based customer demand, with President and Chief Executive Officer Dhrupad Trivedi citing rising network traffic volumes, expanding AI deployments and more complex security requirements. Revenue from customers other than the largest customer grew double digits year over year, the company said.

Product revenue was $58.5 million, up from $43.1 million a year earlier. Services revenue was $33.0 million.

GAAP gross profit was $72.1 million and GAAP gross margin was 78.7%. Non-GAAP gross profit was $73.3 million and non-GAAP gross margin was 80.0%.

GAAP income from operations was $18.3 million. Non-GAAP income from operations was $25.5 million, with non-GAAP operating margin of 27.8%.

GAAP net income was $17.2 million, or $0.23 a share. Non-GAAP net income was $23.6 million, or $0.31 a share. Non-GAAP Adjusted EBITDA was $29.5 million, or 32.2% of revenue.

Trivedi said non-GAAP EPS grew faster than revenue and that combined revenue growth and adjusted EBITDA margin exceeded the rule of 40.

The company returned $27.4 million to investors in the quarter, including $23.0 million of share repurchases (879 thousand shares at an average $26.18) and $4.4 million of cash dividends. Cash, cash equivalents and marketable securities were $360.4 million as of September 30, 2026. The board approved a quarterly cash dividend of $0.06 a share, payable December 1, 2026.

Based on year-to-date performance, demand visibility and the current supply environment, management updated its full-year 2026 outlook. Full-year revenue growth is now expected at approximately 16%, compared with prior guidance of 12-14% growth. Non-GAAP Adjusted EBITDA margin is expected in excess of 30%. Non-GAAP diluted EPS is expected at $1.08 to $1.10, representing 20-22% growth over 2025, compared with prior guidance of 14-16% EPS growth.

Trivedi said the company is focused on translating revenue growth into higher gross profit dollars, operating leverage and EPS growth as the industry navigates supply challenges. The company set long-term targets of $500 million in annual revenue through organic growth and $2.00 in annual non-GAAP EPS for fiscal year 2029. The company said the target incorporates the accounting impact of its warrant agreement with its largest customer and implies a 14% compound annual revenue growth rate.