NETGEAR shares surge 14.03% premarket after reporting record 41.2% gross margin and 10.6% enterprise segment growth in Q4 2025.

NETGEAR surged 14.03% in premarket trading following the release of its Q4 2025 results, which highlighted a record 41.2% non-GAAP gross margin (up 750 bps year-over-year) and strong enterprise segment growth. The company reported $182.5M in quarterly revenue, with the enterprise division rising 10.6% to $89.4M, driven by ProAV managed switches and operational efficiencies. Despite a 8.4% decline in consumer revenue due to memory cost pressures and service provider sales drops, the overall profitability and guidance for Q1 2026—despite a 100 bps margin headwind—signaled resilience. Investors appears to have focused on the enterprise momentum, margin expansion, and subscription revenue growth ($40M ARR, +18% YoY), outweighing near-term supply chain concerns.