NETGEAR® Reports Third Quarter 2026 Results
NETGEAR reported Q3 2026 net revenue of $167.3 million, down 9.3% year-over-year, with GAAP EPS of $(0.45) and non-GAAP EPS of $0.13. Non-GAAP operating margin of 2.0% exceeded the high end of guidance, and Enterprise non-GAAP gross margin expanded 220bps to 53.2%, but manufacturing challenges at a key production partner constrained shipments — Enterprise backlog exited Q3 more than 2.5x the end of Q2. Management guided Q4 revenue to $160-$175 million with non-GAAP operating margin of 0%-3%, citing component costs and supply constraints persisting into Q1 2027, while implementing price increases in both segments.
Key figures
- Revenue
- 167.3
- Guidance
- Q4 2026 net revenue $160M-$175M; GAAP operating margin (8.7)% to (5.7)%; non-GAAP operating margin 0%-3%; service provider revenue ~$17M (approx -28% YoY); ~150bps sequential gross margin pressure
- Revenue Yoy
- -9.3%
- Arr
- $42.5 million
- Arr growth
- 12%
- Q3 buybacks
- $15 million
- Cash and sti
- $242 million
- Non gaap eps
- 0.13
- Consumer revenue
- 76.6
- Gaap gross margin
- 40.1%
- Enterprise revenue
- 90.7
- Non gaap gross margin
- 41.3%
- Enterprise backlog vs q2
- more than 2.5x
- Non gaap operating income
- 3300000
- Non gaap operating margin
- 2.0%
- Cumulative buybacks since 2024
- $131 million
AI analysis
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.