NTGR · NETGEAR, Inc.

NETGEAR's first quarter 2026 results demonstrated strong operational execution, with record gross margins driven by a favorable mix shift toward higher-margin Enterprise products and disciplined supply chain management. Enterprise segment revenue grew 5.8% year-over-year to $83.8 million, representing 53% of total revenue, with non-GAAP gross margin expanding 640 basis points to 52.7%. The Consumer segment declined 9.5% to $75.0 million, but gross margin improved 520 basis points to 29.4% due to product mix optimization and pricing discipline. Non-GAAP operating income of $1.7 million exceeded the high end of guidance, compared to a loss of $2.6 million in the prior year. Management highlighted that AI is acting as a transformation catalyst across the organization, and that sufficient memory has been secured for virtually all 2026 production. The company repurchased $20 million of shares at an average price of $21.53, and the Board authorized an additional $75 million for buybacks. For the second quarter, NETGEAR expects revenue between $150 million and $165 million, with non-GAAP operating margin ranging from -1.0% to 2.0%, reflecting continued memory cost headwinds partially offset by mitigation efforts.