Key Highlights

  • Second-quarter 2026 Revenue was USD 80.1 million, up 15.5 per cent, with adjusted EBITDA of USD 24.4 million.
  • The company raised its full-year 2026 revenue growth outlook to 12 to 14 per cent from 10 to 12 per cent.
  • Cash, cash equivalents and marketable securities totalled USD 357.3 million, and the company returned USD 6.7 million to shareholders in the quarter.

A raised outlook after the first half

A10 Networks, Inc. (NYSE:ATEN), which sells application delivery, security and networking products, reported second-quarter 2026 results on 5 August 2026 and raised its full-year outlook. The company will next report on Thursday 5 November 2026 after the market closes, with a conference call at 4:30 p.m. Eastern.

Revenue for the quarter ended 30 June 2026 was USD 80.1 million, up 15.5 per cent from USD 69.4 million. Products revenue climbed to USD 49.0 million from USD 39.2 million, while services revenue edged up to USD 31.1 million from USD 30.2 million. For the first half, revenue was USD 155.1 million, about 14.5 per cent higher than the USD 135.5 million recorded a year earlier. Services revenue accounted for about 39 per cent of quarterly revenue, with products making up the remainder.

Profitability and cash returns

GAAP gross Margin was 79.1 per cent, with non-GAAP gross margin at 80.3 per cent. GAAP Net Income was USD 8.9 million, or USD 0.12 per diluted share, while non-GAAP net income was USD 18.7 million, or USD 0.25 per diluted share. Adjusted EBITDA was USD 24.4 million, a 30.5 per cent margin, against USD 19.7 million and 28.3 per cent in the second quarter of 2025. The gap between GAAP and non-GAAP Earnings is substantial, and the company's reconciliation sets out the adjustments involved.

Cash, cash equivalents and marketable securities totalled USD 357.3 million at 30 June 2026. In the quarter, A10 repurchased 86,115 shares for a total of USD 2.4 million and paid USD 4.3 million in dividends, returning USD 6.7 million overall. A quarterly Dividend of USD 0.06 per share was payable on 1 September 2026.

Guidance and the Microsoft agreement

Management lifted its full-year 2026 revenue growth outlook to 12 to 14 per cent from 10 to 12 per cent, and its earnings-per-share growth outlook to 14 to 16 per cent from 12 to 14 per cent. These are forecasts rather than reported results, and management said it updated them based on first-half performance and Demand outlook. The release does not give absolute dollar figures or state whether the earnings measure is GAAP or non-GAAP, and it provides no third-quarter guidance.

The release also referred to a new multi-year agreement with Microsoft. Chief executive Dhrupad Trivedi described it as a validation of the value the two companies deliver jointly. No financial terms were disclosed, so its contribution to revenue cannot be assessed.

Mr Trivedi also said A10 is deepening engagement with leaders defining the AI infrastructure market, positioning its security-focused networking products for AI-related infrastructure.

What to watch

Cash flow deserves attention. Net cash from Operating Activities was USD 31.3 million in the first half, down from USD 39.4 million a year earlier, even as revenue grew. Total deferred revenue rose to about USD 154.8 million from about USD 142.8 million at the end of 2025, which may indicate a growing base of contracted services, though it is not a forecast.

Investors may also look for evidence that products growth, which drove most of the quarter's increase, continues to outpace slower services growth, and whether the raised guidance is maintained on 5 November.