NETGEAR (NASDAQ:NTGR) Issues Earnings Results, Beats Expectations By $0.14 EPS

NETGEAR (NASDAQ:NTGR) issued its earnings results on Wednesday. The communications equipment provider reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.14, FiscalAI reports. NETGEAR had a negative net margin of 3.58% and a negative return on equity of 2.66%. The company had revenue of $158.82 million for the quarter, compared to analyst estimates of $152.49 million. During the same period in the prior year, the business posted $0.02 earnings per share. The firm’s revenue for the quarter was down 2.0% compared to the same quarter last year.

Here are the key takeaways from NETGEAR’s conference call:

• Q1 revenue was $158.8M (down 2% YoY) but NETGEAR delivered a record non-GAAP gross margin of 41.7% and non-GAAP EPS of $0.06, driven by a larger enterprise mix and operational discipline.
• The company secured DDR4 memory supply for most of 2026 but expects memory cost headwinds — ~100 basis points hit in Q1, neutralized in Q2 by mitigations, and a further ~200 basis point consolidated margin pressure in the back half that will disproportionately affect consumer results.
• Enterprise momentum continues: Pro AV managed switches saw double-digit end-user demand, enterprise revenue mix rose to ~53% of total, enterprise gross margin hit a record 52.7%, partner ecosystem expanded to 577 partners, and the company is growing non-device offerings (Insight 10.0, paid support/services) supported by acquisitions VAAG and Exium.
• Consumer strategy is being optimized for margin not top-line growth — core consumer products grew 3% YoY and recurring ARR rose 12% to $39.7M (559k subscribers), while NETGEAR readies Wi‑Fi 7 releases and a Google Home/Matter integration to boost long-term services revenue.
• Capital return is active: the company repurchased ~929k shares in Q1 at an average $21.53, ended the quarter with $296.5M in cash/short-term investments, and has ~ $89M remaining under its refreshed repurchase authorization.

NETGEAR Price Performance

NASDAQ:NTGR traded up $0.27 during trading hours on Friday, reaching $25.54. 266,728 shares of the company traded hands, compared to its average volume of 541,747. The firm’s 50-day moving average is $22.87 and its 200-day moving average is $24.68. The stock has a market cap of $698.13 million, a P/E ratio of -29.02 and a beta of 1.09. NETGEAR has a 1-year low of $19.00 and a 1-year high of $36.86.

Insider Buying and Selling at NETGEAR

In other news, insider Pramod Badjate sold 3,000 shares of the company’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $20.97, for a total value of $62,910.00. Following the sale, the insider directly owned 144,586 shares in the company, valued at $3,031,968.42. This represents a 2.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 2.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in NTGR. XTX Topco Ltd boosted its stake in shares of NETGEAR by 135.7% during the 4th quarter. XTX Topco Ltd now owns 17,048 shares of the communications equipment provider’s stock worth $418,000 after purchasing an additional 9,815 shares during the last quarter. Wellington Management Group LLP raised its position in shares of NETGEAR by 2.4% in the fourth quarter. Wellington Management Group LLP now owns 156,222 shares of the communications equipment provider’s stock valued at $3,832,000 after buying an additional 3,663 shares during the last quarter. Millennium Management LLC raised its position in shares of NETGEAR by 386.1% in the fourth quarter. Millennium Management LLC now owns 236,078 shares of the communications equipment provider’s stock valued at $5,791,000 after buying an additional 187,515 shares during the last quarter. Engineers Gate Manager LP lifted its stake in shares of NETGEAR by 36.5% during the fourth quarter. Engineers Gate Manager LP now owns 58,020 shares of the communications equipment provider’s stock valued at $1,423,000 after buying an additional 15,512 shares during the period. Finally, Freestone Grove Partners LP purchased a new position in shares of NETGEAR during the fourth quarter valued at approximately $334,000. Institutional investors and hedge funds own 82.97% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Wall Street Zen upgraded NETGEAR from a “sell” rating to a “hold” rating in a report on Saturday, March 28th. Weiss Ratings reiterated a “sell (d)” rating on shares of NETGEAR in a research report on Friday, March 27th. Zacks Research raised NETGEAR from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 10th. Finally, Stifel Nicolaus set a $36.00 price target on NETGEAR in a research note on Thursday, February 5th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $36.00.

NETGEAR Company Profile

NETGEAR, Inc (NASDAQ: NTGR) is a global provider of networking solutions for consumer, business and service provider markets. The company designs, develops and markets a comprehensive portfolio of products that enable high-speed connectivity, data storage and network security for homes, small to medium-sized businesses and large enterprises.

Its product lineup includes Wi-Fi routers, mesh networking systems, cable modems, mobile broadband gateways and Ethernet switches—offered in both managed and unmanaged configurations.