NETGEAR (NTGR) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $167.3M, down 9.3% YoY; manufacturing constraints limited shipments despite strong Enterprise demand, while non-GAAP operating income was $3.3M.

• Enterprise represented over 54% of revenue and ~70% of non-GAAP gross profit, reflecting a higher-margin business mix.

Financial highlights

• Q3 GAAP net revenue was $167.3M vs. $184.6M YoY; gross profit was $67.1M vs. $72.3M.

• GAAP operating loss was $13.7M vs. $7.1M, and net loss was $12.3M vs. $4.8M; non-GAAP operating income was $3.3M and non-GAAP net income was $3.7M.

• GAAP diluted EPS was $(0.45) vs. $(0.17); non-GAAP diluted EPS was $0.13 vs. $0.12 YoY.

• Nine-month revenue was $494.7M vs. $517.2M; net loss was $32.6M vs. $17.2M in 2025.

Outlook and guidance

• Q4 revenue guidance is $160M–$175M; service-provider and related revenue is expected to be $17M, down 28% YoY.

• Q4 GAAP operating margin guidance is (8.7)%–(5.7)%; non-GAAP operating margin is 0%–3%.

• Q4 gross margin is expected to decline ~150 bps sequentially, primarily due to higher memory and transportation costs; gross margin may be in line with or below Q3's 40.1%.

• Enterprise revenue is expected to increase modestly QoQ and Consumer revenue to decline modestly; production constraints are expected to persist into Q1 2027.

• Normal production levels are expected by Q1 2027; consumer price increases are planned for early 2027 and Enterprise pricing increases took effect in November.