Earnings Releases·Nov 4, 2026, 4:16 PM ET

NETGEAR — Third Quarter 2026 Earnings Summary

Consolidated net revenue declined 9.3% year over year to $167.3 million, driven by an 18.2% drop in the Consumer segment, while Enterprise revenue remained flat at $90.7 million; Non-GAAP EPS rose to $0.13 from $0.12, and Non-GAAP gross margin expanded 170 basis points to 41.3%.
Management issued Q4 2026 revenue guidance of $160–$175 million, citing persistent manufacturing constraints into Q1 2027 and anticipated 150 basis points of gross margin pressure due to rising memory and transportation costs.
Strategic initiatives include scheduled price increases for Enterprise products in November 2026 and Consumer products in early 2027, alongside a Q3 restructuring in the Consumer segment with cost benefits expected in 2027.
Subscription and services Annual Recurring Revenue (ARR) grew 12% year over year to $42.5 million, and the Enterprise backlog exceeded 2.5 times the Q2 ending level, reflecting strong underlying demand in managed switches.
The company executed $15 million in share repurchases during the quarter, bringing cumulative buybacks since 2024 to over $131 million, while maintaining $242 million in cash and short-term investments.