Quarterly ResultApr 29, 2026, 04:40 PM
NTGR Q1 Revenue $158.8M; Record Gross Margin 40.5%; $20M Buyback
AI Summary
NETGEAR, Inc. reported Q1 2026 financial results, with net revenue of $158.8 million, a 2.0% decrease year-over-year. The company achieved a record high GAAP gross margin of 40.5% and saw non-GAAP operating income turn positive at $1.7 million. The Enterprise segment showed strong growth, while the Consumer segment experienced a revenue decline but improved gross margin. NETGEAR also repurchased $20 million in shares and authorized an additional $75 million for buybacks, and provided Q2 2026 revenue guidance of $150 million to $165 million.
Key Highlights
- NTGR Q1 2026 net revenue was $158.8 million, down 2.0% year-over-year.
- GAAP gross margin reached a record high of 40.5%, up 570 basis points year-over-year.
- Non-GAAP operating income was $1.7 million, up from $(2.6) million in Q1 prior year.
- Non-GAAP EPS was $0.06, up from $0.02 in Q1 prior year.
- Repurchased $20 million of shares at an average price of $21.53; Board approved an additional $75 million for repurchase.
- Enterprise segment revenue was $83.8 million, up 5.8% year-over-year, with non-GAAP gross margin of 52.7%.
- Consumer segment revenue was $75.0 million, down 9.5% year-over-year, with non-GAAP gross margin of 29.4%.
- Annual Recurring Revenue (ARR) from subscription and services was approximately $40 million, up 12% year-over-year.
- Q2 2026 net revenue guidance is $150 million to $165 million; non-GAAP operating margin (1.0)% to 2.0%.