A10 Networks (ATEN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 22.6% YoY to a record $91.5M; 9M revenue grew 17.4% to $246.7M.

• Enterprise demand drove growth; revenue excluding the largest customer grew at a double-digit rate.

• Rising network traffic, AI deployments and complex security needs supported demand and market-share gains.

Financial highlights

• Q3 product revenue rose 35.7% YoY to $58.5M; services revenue increased 4.7% to $33.0M.

• Q3 GAAP gross profit was $72.1M at 78.7% margin; non-GAAP gross profit was $73.3M at 80.0% margin.

• GAAP operating income was $18.3M and net income was $17.2M; non-GAAP operating income was $25.5M and net income was $23.6M.

• Non-GAAP diluted EPS was $0.31; GAAP diluted EPS was $0.23.

• Adjusted EBITDA was $29.5M, or 32.2% of revenue; 9M free cash flow was $57.5M, up 18% YoY.

Outlook and guidance

• FY26 revenue growth guidance rose to ~16% YoY from 12%-14%; outlook implies broad Q4 growth excluding the largest customer.

• FY26 non-GAAP diluted EPS guidance is $1.08-$1.10, representing 20%-22% growth; adjusted EBITDA margin is expected to exceed 30%.

• FY26 free cash flow is expected at $74M-$77M.

• FY29 organic targets are $500M annual revenue and $2.00 annual non-GAAP EPS.