Netgear, Inc. (NASDAQ: NTGR) reported third-quarter 2026 results showing net revenue of $167.3 million, down 9.3% year-over-year. GAAP gross margin improved 100 basis points to 40.1%, while non-GAAP gross margin rose 170 basis points to 41.3%. GAAP operating loss widened to $(13.7) million from $(7.1) million a year ago, but non-GAAP operating income held steady at $3.3 million. GAAP EPS was $(0.45) versus $(0.17) in Q3 2025; non-GAAP EPS edged up to $0.13 from $0.12.
CEO CJ Prober highlighted progress in the company's shift to a software-differentiated, Enterprise-led model, noting strong demand for Pro AV managed switches. Manufacturing constraints at a key partner limited revenue conversion, with normal production expected by Q1 2027. The Consumer segment is being intentionally optimized for gross profit over revenue.
CFO Bryan Murray emphasized that Enterprise now represents over 54% of revenue and roughly 70% of non-GAAP gross profit, driving structural margin improvement. Non-GAAP operating margin of 2.0% exceeded guidance.
Source: TechPowerUp News · Summarized by HeadlinesBriefing