NETGEAR, Inc.
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Range $22 – $40
Price Chart
About the company
NETGEAR, Inc. specializes in the conceptualization, engineering, and distribution of a broad spectrum of networking and internet-enabled devices. The company caters to a diverse clientele, encompassing individual consumers, corporate entities, and internet service providers.
- CEO
- Charles J. Prober
- IPO
- 2003
- Employees
- 784
- HQ
- San Jose, CA, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $566.32M
- P/E
- -14.55
- Fwd P/E
- 74.04
- PEG
- 0.12
- P/S
- 0.82
- P/B
- 1.25
- EV/EBITDA
- -26.14
- Div Yield
- 0.00%
- Gross Margin
- 38.18%
- Op Margin
- -4.24%
- Net Margin
- -5.91%
- ROE
- -8.42%
- ROIC
- -5.37%
Latest fiscal year · YoY change
- Revenue
- $693.35M+2.9%
- Gross Profit
- $250.96M+28.1%
- Op Income
- $-35,108,000
- Net Income
- $-32,839,000-365.6%
- EPS
- $-1.14-365.1%
- OCF Growth
- -99.0%
- FCF Growth
- -112.1%
- 52W High
- $36.86
- 52W Low
- $19.00
- 50D MA
- $23.42
- 200D MA
- $23.92
- Beta
- 1.20
- RSI (14)
- 34
- Avg Volume
- 378.50K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
NETGEAR delivered a better-than-guidance second quarter, with enterprise strength, record segment margins, and recurring revenue growth offsetting consumer weakness and supply-chain pressure.· August 6, 2026
- Enterprise revenue rose 7.7% year over year to $89 million, with enterprise now more than half of total revenue and about 69% of gross profit.
- Non-GAAP gross margin hit 41.4%, up from 37.8% a year ago, while enterprise gross margin reached an all-time high of 54.1%.
- Non-GAAP EPS was $0.16 and non-GAAP operating income was $4 million, versus a non-GAAP operating loss last year.
- Annual recurring revenue increased 15% year over year to about $41.6 million, and recurring subscribers reached 558,000.
- Consumer revenue fell 9.4% year over year to $79.6 million as management continued to prioritize gross profit over top-line growth amid memory cost inflation.
For Q2 2026, NETGEAR reported revenue of $168.6 million, down 1.2% year over year and up 6.1% sequentially. Non-GAAP gross margin was 41.4%, versus 37.8% in the prior-year quarter; enterprise gross margin was 54.1%, up 740 basis points year over year; and consumer gross margin was 27.3%, down 210 basis points year over year. Non-GAAP operating income was $4 million, or 2.4% operating margin, and non-GAAP net income was about $4.4 million, or $0.16 per share. Looking ahead to Q3 2026, management guided to revenue of $165 million to $175 million, non-GAAP operating margin of negative 3% to 0%, and service provider revenue of around $22 million; they also said they expect about a 200-basis-point gross margin headwind in the second half, skewed more heavily to Q3.
CEO Charles J. Prober framed the quarter as evidence that NETGEAR’s transformation toward a software-differentiated enterprise business is working. He highlighted enterprise momentum, new software and platform offerings like Align and improved Insight capabilities, growing partner/customer ecosystems, and a shift toward higher-margin recurring revenue. His tone was confident and long-term oriented, emphasizing pricing leverage, AI-enabled software development, and the view that the company is becoming an enterprise solutions business.
CFO Bryan D. Murray said Q2 revenue of $168.6 million and non-GAAP operating margin of 2.4% were above the high end of guidance, helped by enterprise strength and some service-provider benefit. He pointed to non-GAAP gross margin of 41.4%, enterprise gross margin of 54.1%, consumer gross margin of 27.3%, and ARR of $41.6 million, while noting $10.2 million of cash used by operations in the quarter and $268 million in cash and short-term investments at quarter-end. He also said the company repurchased about 560,000 shares at an average price of $23.04, spent $1.5 million on capex, and still has about $75 million remaining under authorization.
Analysts focused on why enterprise strength exceeded seasonality, with management pointing to solid demand in the Americas and EMEA, double-digit growth in Pro AV managed switches, and no meaningful one-time benefit from events like the World Cup. They also pressed on APAC, where Prober described a legacy-channel restructuring with fewer distribution layers and a new regional leader, saying the region has near-term headwinds but could become the fastest-growing market. On supply-chain pressure and margins, management said memory shortages, broader component cost inflation, and some air-freight use are pressuring Q3 margins, but enterprise pricing leverage and supply improvements should help later in the year.
The call showed clear proof that enterprise is scaling into a higher-margin growth engine, with 7.7% revenue growth, 54.1% gross margin, and expanding contribution margin. Management also expressed confidence that software, recurring revenue, and platform wins like Align and Insight can keep lifting profitability over time.
Consumer remains pressured by memory costs, aggressive pricing, and a declining service-provider base, and management expects a 200-basis-point gross margin headwind in the second half. APAC is still a drag due to channel restructuring, and Q3 guidance implies a step-down in operating margin even after a strong Q2.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 94.5%
- Shares Outstanding
- 26.84M
- Float Shares
- 25.37M
of shares held by institutions
188 13F filers
Buy/sell ratio 0.17. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 3.55M | ▲ 109.27K |
| Vanguard Group Inc | 2.54M | ▲ 74.46K |
| Brandes Investment Partners, LP | 1.77M | ▼ 1.24M |
| Windward Management LP | 1.37M | ▼ 86.96K |
| Vanguard Capital Management LLC | 1.11M | ▼ 99.66K |
| Acadian Asset Management LLC | 1.10M | ▼ 29.61K |
| State Street Corp | 1.09M | ▲ 150.85K |
| Dimensional Fund Advisors LP | 1.06M | ▼ 55.52K |
| Goldman Sachs Group Inc | 744.14K | ▲ 25.19K |
| Arrowstreet Capital, Limited Partnership | 728.86K | ▲ 102.26K |
| Geode Capital Management, LLC | 715.64K | ▲ 16.15K |
| Royce & Associates LP | 687.98K | ▲ 312.36K |
Held by 223 ETFs
Biggest fund positions in NTGR by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 4, 26 | Murray Douglas Andrew | other | 6,107 |
| Aug 3, 25 | Murray Douglas Andrew | other | 0 |
| Jul 31, 26 | Badjate Pramod | other | 8,440 |
| Jul 31, 26 | Badjate Pramod | sell | 1,000 |
| Jul 31, 26 | Badjate Pramod | sell | 2,000 |
| Jul 31, 26 | Prober Charles J. | other | 4,598 |
| Jul 31, 26 | Murray Bryan | other | 4,814 |
| Jul 31, 26 | Murray Bryan | other | 4,293 |
| Jan 27, 26 | Murray Bryan | other | 9,461 |
| Jun 30, 26 | Oakes Jonathan Russell | other | 10,601 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our NTGR coverage
Recent articles, reports, and earnings notes.
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Generate NTGR report →Deciphering NETGEAR (NTGR) International Revenue Trends
zacks.com · Aug 10
NETGEAR Q2 Earnings Beat Estimates, Revenues Decline Y/Y
zacks.com · Aug 7
NETGEAR, Inc. (NTGR) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 7
NETGEAR Q2 Earnings Call Highlights
marketbeat.com · Aug 7
NETGEAR, Inc. (NTGR) Tops Q2 Earnings and Revenue Estimates
zacks.com · Aug 6
NETGEAR® Reports Second Quarter 2026 Results
businesswire.com · Aug 6
NETGEAR Schedules Second Quarter 2026 Results Conference Call
gurufocus.com · Jul 21
NETGEAR Schedules Second Quarter 2026 Results Conference Call
businesswire.com · Jul 21
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