NETGEAR Reports Q3 2026 Results: Revenue Declines Amid Manufacturing Constraints and Strategic Shifts
NETGEAR (NTGR) reported third-quarter revenue of $167.3 million, a 9.3% decrease year-over-year. The decline was primarily driven by manufacturing constraints and a strategic decision to reduce focus on the service provider business segment. Despite lower top-line growth, non-GAAP EPS rose slightly to $0.13 from $0.12 in the prior year, aided by improved expense management and a more profitable segment mix. The company is seeing significant strength in its Enterprise division, which now accounts for 54% of total revenue. While enterprise revenue remained flat due to supply limitations, the backlog grew to over 2.5 times the Q2 level, driven by high demand for Pro AV managed switches. To optimize profitability, NETGEAR is undergoing operational restructuring, including a reduction in workforce and the closure of its Canadian office, aiming for $6 million in annualized savings.
Tickers: $NTGR
Topics: annual recurring revenue consumer revenue enterprise revenue eps beat revenue decline