NETGEAR (NASDAQ:NTGR) Issues Earnings Results

NETGEAR (NASDAQ:NTGR) announced its quarterly earnings data on Thursday. The communications equipment provider reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.01 by $0.15, FiscalAI reports. NETGEAR had a negative return on equity of 2.74% and a negative net margin of 3.71%.The company had revenue of $168.56 million for the quarter, compared to analyst estimates of $157.80 million. During the same quarter last year, the firm posted $0.06 EPS. The firm’s revenue for the quarter was down 1.2% on a year-over-year basis.

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

• Enterprise revenue grew 7.7% year over year to $89 million, led by Pro AV managed switches and strength in the Americas and EMEA. Enterprise now represents about 53% of total revenue and delivered a record 54.1% gross margin.
• Consolidated Q2 results exceeded the high end of guidance, with revenue of $168.6 million, non-GAAP operating margin of 2.4%, and non-GAAP EPS of $0.16. Gross margin expanded 360 basis points year over year to 41.4%, supported by the higher-margin enterprise mix and acquired switch operating-system technology.
• NETGEAR reported continued progress in its software and services transformation, including the Align platform and an enhanced Insight offering. Annual recurring revenue increased 15% year over year to $41.6 million, with 558,000 recurring subscribers exiting the quarter.
• Consumer revenue fell 9.4% year over year to $79.6 million, while gross margin declined to 27.3% amid memory-cost inflation, aggressive promotions, and supply constraints. Management expects these pressures to weigh more heavily in Q3 and projects total revenue of $165 million-$175 million and non-GAAP operating margin between -3% and 0%.
• APAC enterprise revenue declined 16% year over year as NETGEAR restructures its go-to-market model and reduces distribution layers. The company expects sequential growth to resume in Q4 under new regional leadership, but near-term execution remains a headwind.

NETGEAR Stock Performance

NASDAQ:NTGR opened at $23.67 on Friday. NETGEAR has a one year low of $19.00 and a one year high of $36.86. The stock has a market cap of $635.30 million, a PE ratio of -25.45 and a beta of 1.20. The stock has a 50 day moving average price of $23.71 and a 200 day moving average price of $23.23.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a “sell (d)” rating on shares of NETGEAR in a research note on Wednesday, June 24th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $36.00.

Insider Buying and Selling

In other news, Director Sarah Butterfass sold 2,704 shares of NETGEAR stock in a transaction on Monday, June 1st. The stock was sold at an average price of $26.90, for a total transaction of $72,737.60. Following the transaction, the director owned 38,953 shares in the company, valued at $1,047,835.70. The trade was a 6.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Laura Durr sold 2,000 shares of the business’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $25.94, for a total transaction of $51,880.00. Following the transaction, the director directly owned 43,059 shares in the company, valued at approximately $1,116,950.46. The trade was a 4.44% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 12,085 shares of company stock worth $313,933. 3.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NETGEAR

Hedge funds and other institutional investors have recently bought and sold shares of the company. XTX Topco Ltd boosted its holdings in NETGEAR by 135.7% in the 4th quarter. XTX Topco Ltd now owns 17,048 shares of the communications equipment provider’s stock valued at $418,000 after purchasing an additional 9,815 shares during the last quarter. Wellington Management Group LLP grew its stake in shares of NETGEAR by 2.4% in the 4th 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 period. Millennium Management LLC increased its holdings in shares of NETGEAR by 386.1% during the 4th quarter. Millennium Management LLC now owns 236,078 shares of the communications equipment provider’s stock worth $5,791,000 after buying an additional 187,515 shares during the last quarter. Engineers Gate Manager LP increased its holdings in shares of NETGEAR by 36.5% during the 4th quarter. Engineers Gate Manager LP now owns 58,020 shares of the communications equipment provider’s stock worth $1,423,000 after buying an additional 15,512 shares during the last quarter. Finally, Freestone Grove Partners LP purchased a new stake in shares of NETGEAR during the 4th quarter valued at approximately $334,000. 82.97% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting NETGEAR

Here are the key news stories impacting NETGEAR this week:

• Positive Sentiment: NETGEAR reported second-quarter earnings of $0.16 per share, well above the roughly $0.01-$0.02 analyst consensus, while revenue of $168.6 million also exceeded expectations of approximately $157.8 million. EPS improved from $0.06 a year earlier. NETGEAR Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Enterprise demand and wider margins helped offset softer Consumer results. Management is continuing to shift the business toward Enterprise products, a strategy that could support longer-term growth and profitability. NETGEAR Q2 Earnings Beat Estimates, Revenues Decline Year Over Year
• Neutral Sentiment: NETGEAR appointed Douglas Murray to its board as it advances its Enterprise-focused strategy. The appointment reinforces the company’s strategic transition, although its financial impact is not yet clear. NETGEAR Appoints Douglas Murray to Board
• Negative Sentiment: Second-quarter revenue declined 1.2% year over year, reflecting Consumer weakness and rising memory costs. The company also remains unprofitable on a GAAP basis, with a negative net margin and return on equity. NETGEAR Reports Second Quarter 2026 Results
• Negative Sentiment: Third-quarter revenue guidance of $165 million to $175 million brackets the $170.1 million consensus estimate and signals limited near-term growth. The outlook may be weighing on the stock even though second-quarter results surpassed forecasts. NETGEAR Earnings Report

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.