A10 Networks 2025 Q3 Earnings Beats Estimates Despite Slight Net Income Drop

A10 Networks (ATEN) reported fiscal 2025 Q3 earnings on November 4, 2025, with revenue and EPS exceeding expectations. The company reiterated in-line guidance, reflecting confidence in its AI and cybersecurity growth strategies.

Revenue

A10 Networks’ total revenue surged 11.9% year-over-year to $74.68 million in Q3 2025, driven by robust performance across its product and services segments. Product revenue grew to $43.11 million, while Services revenue reached $31.57 million, . This marks a significant outperformance of analyst estimates, underscoring the company’s strategic alignment with AI infrastructure demand.

Earnings/Net Income

, matching the prior year’s figure. However, net income declined slightly to $12.19 million, . Despite stable EPS, the decline in net income signals margin pressures that may require further scrutiny.

Price Action

Following the earnings release, , 3.47% over the preceding week, . The post-earnings reaction highlights mixed short-term sentiment despite revenue outperformance.

Post-Earnings Price Action Review

The strategy of buying ATEN upon revenue beats and holding for 30 days lacks sufficient historical data for validation. While Q3 2025 revenue exceeded estimates by $4 million, the stock’s immediate 2.5% decline post-earnings and absence of 30-day performance data limit actionable insights. Broader market underperformance (18.8% year-to-date) and high expectations for AI-driven growth further complicate short-term returns.

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CEO Commentary

Dhrupad Trivedi, CEO, emphasized A10’s strategic focus on AI infrastructure and cybersecurity, aligning with customer roadmaps for secure, high-performance solutions. Operational discipline and disciplined execution were highlighted as key priorities to convert revenue growth into profitability and cash flow.

Guidance

A10 Networks reiterated its 10% full-year revenue growth target and EBITDA margin guidance of 26-28%. The company approved a $0.06 per share quarterly dividend and reaffirmed $60.1 million remaining under its share repurchase authorization, signaling confidence in long-term value creation.

Additional News

1. Leadership Transition: CFO Brian Becker stepped down, with Michelle Caron joining as CFO, bringing expertise in financial strategy and capital allocation.


2. Share Repurchases: A10 returned $15.3 million to shareholders via 634,000 shares repurchased at $17.41 average price.


3. Dividend Update: A $0.06 per share dividend, payable December 1, 2025, underscores the company’s commitment to shareholder returns amid growth initiatives.

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