A10 Networks (ATEN) remains a BUY after a 35% correction, trading at a 69% forward EV/EBITDA discount to peers. ATEN's 2Q26 results showed 15.5% revenue growth, driven by enterprise AI deployments; management raised full-year revenue and EPS guidance. Enterprise customers now comprise 60% of revenue, offsetting telecom weakness; AI-related services and the Microsoft partnership are key growth drivers.
A10 Networks NYSE: ATEN reported second-quarter revenue growth of 15.5% as demand for its application networking and security offerings benefited from AI-related traffic, latency and security requirements. The company raised its full-year revenue and earnings outlook, citing results through the first half and visibility into demand.
A10 Networks (ATEN) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.21 per share a year ago.
A10 Networks (ATEN) is rated BUY, driven by strong earnings, AI security expansion, and a compelling valuation discount to peers. ATEN's sticky, mission-critical solutions yield high recurring revenues and significant cross-selling opportunities amid accelerating enterprise AI buildouts. The TrojAI acquisition strategically enhances ATEN's AI security suite, though material revenue contribution is expected in two years.
Cybersecurity companies embedding AI into their security platforms are positioned for long-term growth amid intensifying cyberattacks.
Cybersecurity has shifted from a line item into a strategic priority as enterprises race to secure AI workloads, contain identity sprawl, and protect data pipelines that now carry mission-critical traffic.
Does A10 Networks (ATEN) have what it takes to be a top stock pick for momentum investors? Let's find out.
A10 Networks, Inc. (ATEN) Q1 2026 Earnings Call Transcript
A10 Networks (ATEN) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.2 per share a year ago.
A10 Networks is expected to report steady, low double-digit revenue and EPS growth, with Q1 '26 consensus revenue at $72.6 million. ATEN's growth is tied to AI infrastructure, cloud, and security demand, with a focus on recurring software revenues and margin recovery after a recent 600bps y/y margin decline. Management guidance aligns with consensus: 10%-12% revenue growth and 12%-14% EPS growth for 2026, but lacks near-term specificity.
Cybersecurity firms with AI capabilities are positioned for long-term growth as cyberattacks continue to intensify.
Here is how A10 Networks (ATEN) and Fabrinet (FN) have performed compared to their sector so far this year.