Enterprise Division Expects Q2 Net Revenue of $150 to $165 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2026
0mins
Should l Buy NTGR?
"Within Enterprise, end user demand for our ProAV line of managed switches is expected to remain strong and we have secured sufficient memory for virtually all our 2026 production plans. We expect the memory impact to be nominal for our Enterprise business given the relatively higher ASPs and margins, and the ability to increase our prices, as seen broadly in the market. On the Consumer side, while we have the right product portfolio and roadmap to address market demand, we will continue to prioritize gross profit over revenue with the rising cost of memory which we expect to continue throughout the year. We also expect to continue driving growth in higher margin recurring services. For Service Provider and related products, we remain steadfast in our approach of harvesting this business and expect revenue to be around $18 million, which would be a decline of approximately 33% as compared to the second quarter of 2025. Accordingly, we expect second quarter net revenue to be in the range of $150 million to $165 million. In the second quarter we expect our mitigation efforts, with greater benefit to the enterprise business, to counter the rising cost of memory. Accordingly, we expect our second quarter GAAP operating margin to be in the range of (8.4)% to (5.4)%, and non-GAAP operating margin to be in the range of (1.0)% to 2.0%. Our GAAP tax is expected to be in the range of $0.8 million to $1.8 million, and our non-GAAP tax expense is expected to be in the range of $0.5 to $1.5 million for the second quarter of 2026."
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Analyst Views on NTGR
Wall Street analysts forecast NTGR stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 25.890
Low
40.00
Averages
40.00
High
40.00
Current: 25.890
Low
40.00
Averages
40.00
High
40.00
About NTGR
NETGEAR, Inc. is engaged in providing networking technologies for businesses, homes, and service providers. The Company operates through two segments, which include Enterprise and Consumer. The Enterprise segment focuses on small and medium enterprises and provides solutions for audio and video over Ethernet for audiovisual (AV) applications, enterprise networking solutions, including wireless local area network (LAN) and cloud-managed networking capabilities, software platforms for deployment and remote management, and security offerings, including firewall and secure access service edge (SASE) functionality, designed to address the networking, security, and manageability requirements of organizations. The Consumer segment focuses on consumers and provides dependable and easy-to-use wireless fidelity (Wi-Fi) internet networking solutions such as multi-band Wi-Fi 7 mesh systems and routers, and subscription services offering performance, security, privacy and support.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NETGEAR Q1 2026 Earnings Call Insights
- Financial Performance: In Q1 2026, NETGEAR reported revenue of $158.8 million with a non-GAAP gross margin of 41.7%, reflecting a decline compared to the previous year but driven by strong performance in the Enterprise segment, nearing the high end of guidance.
- Employee Restructuring: The company executed a restructuring affecting approximately 5% of its workforce in Q1 to accelerate transformation, which may negatively impact profits in the short term, but mitigation efforts are expected to improve financial conditions in Q2.
- Market Opportunities: NETGEAR became the first retail company to receive conditional approval under the new FCC regulations, which is anticipated to provide a competitive advantage in the medium to long term, although it faces pressure from competitors.
- Partner Network Expansion: In Q1, NETGEAR's manufacturing partner ecosystem grew by over 50 partners, bringing the global total to 577, demonstrating the company's strong collaborative capabilities and potential for future growth.
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NETGEAR to Announce Q1 Earnings on April 29
- Earnings Announcement: NETGEAR (NTGR) is set to release its Q1 2023 earnings on April 29 after market close, with consensus estimates predicting an EPS of -$0.07 and revenue of $158.66 million, reflecting a 2.1% year-over-year decline, indicating potential revenue challenges ahead.
- Historical Performance: Over the past two years, NETGEAR has consistently beaten both EPS and revenue estimates 100% of the time, demonstrating financial stability; however, recent downward revisions in both EPS and revenue forecasts suggest a cautious market outlook.
- Market Expectation Changes: In the last three months, there have been no upward revisions to NETGEAR's EPS estimates, with two downward adjustments, and similarly, revenue estimates have not seen any upward revisions, highlighting concerns regarding the company's future profitability amid memory cost pressures.
- External Challenges: The U.S. ban on new foreign-made routers may impact NETGEAR's market strategy, presenting both opportunities and challenges for revenue and profitability, particularly as the company aims for growth in the enterprise sector.
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- Strong Market Demand: The company is experiencing healthy traction in the consumer electronics and AI data center markets, and growing collaborations with major smartphone manufacturers like Apple and Samsung indicate potential for sustainable growth.
- Optimistic Earnings Forecast: The upcoming quarterly earnings report is expected to show earnings of $0.68 per share, representing a year-over-year increase of 25.9%, with revenues projected at $4.19 billion, up 13.8% from the previous year, indicating robust financial performance.
- Earnings Estimate Revisions: Over the past 30 days, Corning's consensus EPS estimate has been revised slightly higher, and such positive trends in earnings revisions are typically correlated with stock price appreciation, suggesting investors should monitor GLW's future performance closely.
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- Market Performance: On Tuesday, the S&P 500 Index fell by 0.37%, the Dow Jones Industrial Average decreased by 0.18%, and the Nasdaq 100 Index dropped by 0.77%, reflecting investor concerns over the ongoing conflict in Iran and a general decline in market sentiment.
- Oil Price Fluctuations: WTI crude oil prices surged over 4%, reaching elevated levels due to Iran's missile and drone strikes on Israel and US bases, raising fears about energy supply disruptions that could impact global economic recovery.
- Economic Data: Despite market pressures, Q4 nonfarm productivity remained at 1.8%, while unit labor costs were revised up to 4.4%, exceeding expectations, indicating resilience in the economic fundamentals that may provide some support to the stock market.
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Surge in Options Trading Volume for Etsy and Netgear
- Etsy Options Volume: Etsy Inc saw options trading volume of 14,744 contracts, equating to approximately 1.5 million shares, which represents about 52% of its average daily trading volume of 2.8 million shares over the past month, indicating heightened market interest in its future performance.
- High Demand for Call Options: Notably, the $50 strike call option expiring on May 15, 2026, has seen 948 contracts traded today, representing around 94,800 underlying shares, reflecting investor expectations for a price increase in Etsy's stock.
- Netgear Options Activity: Netgear Inc's options trading volume reached 2,183 contracts, equivalent to approximately 218,300 shares, accounting for 50.8% of its average daily trading volume of 429,475 shares over the past month, showcasing active market interest in its stock.
- Put Options Trading Insights: Particularly, the $25 strike put option expiring on June 18, 2026, has recorded 800 contracts traded today, representing about 80,000 underlying shares, indicating investor concerns regarding a potential decline in Netgear's future stock price.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Movement: The S&P 500 Index is down 0.16%, while the Dow Jones Industrial Average is up 0.13%, and the Nasdaq 100 Index has decreased by 0.50%, reflecting investor concerns over the ongoing Iran conflict, which is dampening market sentiment.
- Rising Energy Prices: WTI crude oil prices have surged over 4% due to Iran's missile strikes on Israel and US bases, which not only limits stock market declines but also raises inflation expectations, potentially influencing future monetary policy decisions.
- Economic Data Performance: The US Q4 nonfarm productivity remained unchanged at 1.8%, while unit labor costs were revised up to 4.4% from 2.8%, exceeding market expectations, indicating economic resilience that may support the stock market.
- International Tensions Impact: Saudi Arabia and the UAE have taken steps toward joining the Iran war, potentially escalating the conflict, which increases market concerns about future geopolitical risks and drives investors towards safer assets.
See More
NETGEAR Q1 2026 Earnings Call Insights
- Financial Performance: In Q1 2026, NETGEAR reported revenue of $158.8 million with a non-GAAP gross margin of 41.7%, reflecting a decline compared to the previous year but driven by strong performance in the Enterprise segment, nearing the high end of guidance.
- Employee Restructuring: The company executed a restructuring affecting approximately 5% of its workforce in Q1 to accelerate transformation, which may negatively impact profits in the short term, but mitigation efforts are expected to improve financial conditions in Q2.
- Market Opportunities: NETGEAR became the first retail company to receive conditional approval under the new FCC regulations, which is anticipated to provide a competitive advantage in the medium to long term, although it faces pressure from competitors.
- Partner Network Expansion: In Q1, NETGEAR's manufacturing partner ecosystem grew by over 50 partners, bringing the global total to 577, demonstrating the company's strong collaborative capabilities and potential for future growth.
See More
NETGEAR to Announce Q1 Earnings on April 29
- Earnings Announcement: NETGEAR (NTGR) is set to release its Q1 2023 earnings on April 29 after market close, with consensus estimates predicting an EPS of -$0.07 and revenue of $158.66 million, reflecting a 2.1% year-over-year decline, indicating potential revenue challenges ahead.
- Historical Performance: Over the past two years, NETGEAR has consistently beaten both EPS and revenue estimates 100% of the time, demonstrating financial stability; however, recent downward revisions in both EPS and revenue forecasts suggest a cautious market outlook.
- Market Expectation Changes: In the last three months, there have been no upward revisions to NETGEAR's EPS estimates, with two downward adjustments, and similarly, revenue estimates have not seen any upward revisions, highlighting concerns regarding the company's future profitability amid memory cost pressures.
- External Challenges: The U.S. ban on new foreign-made routers may impact NETGEAR's market strategy, presenting both opportunities and challenges for revenue and profitability, particularly as the company aims for growth in the enterprise sector.
See More
Corning Shares Surge 8.4% Amid Positive Market Trends
- Stock Price Surge: Corning (GLW) shares rallied 8.4% in the last trading session to close at $142.01, with notable trading volume exceeding typical levels, reflecting strong investor optimism.
- Strong Market Demand: The company is experiencing healthy traction in the consumer electronics and AI data center markets, and growing collaborations with major smartphone manufacturers like Apple and Samsung indicate potential for sustainable growth.
- Optimistic Earnings Forecast: The upcoming quarterly earnings report is expected to show earnings of $0.68 per share, representing a year-over-year increase of 25.9%, with revenues projected at $4.19 billion, up 13.8% from the previous year, indicating robust financial performance.
- Earnings Estimate Revisions: Over the past 30 days, Corning's consensus EPS estimate has been revised slightly higher, and such positive trends in earnings revisions are typically correlated with stock price appreciation, suggesting investors should monitor GLW's future performance closely.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Performance: On Tuesday, the S&P 500 Index fell by 0.37%, the Dow Jones Industrial Average decreased by 0.18%, and the Nasdaq 100 Index dropped by 0.77%, reflecting investor concerns over the ongoing conflict in Iran and a general decline in market sentiment.
- Oil Price Fluctuations: WTI crude oil prices surged over 4%, reaching elevated levels due to Iran's missile and drone strikes on Israel and US bases, raising fears about energy supply disruptions that could impact global economic recovery.
- Economic Data: Despite market pressures, Q4 nonfarm productivity remained at 1.8%, while unit labor costs were revised up to 4.4%, exceeding expectations, indicating resilience in the economic fundamentals that may provide some support to the stock market.
- International Tensions: Reports of Saudi Arabia and the UAE aligning with the Iran conflict have heightened market anxiety, as investors are closely monitoring the potential for increased US military deployment, which could escalate tensions and affect global market stability.
See More
Surge in Options Trading Volume for Etsy and Netgear
- Etsy Options Volume: Etsy Inc saw options trading volume of 14,744 contracts, equating to approximately 1.5 million shares, which represents about 52% of its average daily trading volume of 2.8 million shares over the past month, indicating heightened market interest in its future performance.
- High Demand for Call Options: Notably, the $50 strike call option expiring on May 15, 2026, has seen 948 contracts traded today, representing around 94,800 underlying shares, reflecting investor expectations for a price increase in Etsy's stock.
- Netgear Options Activity: Netgear Inc's options trading volume reached 2,183 contracts, equivalent to approximately 218,300 shares, accounting for 50.8% of its average daily trading volume of 429,475 shares over the past month, showcasing active market interest in its stock.
- Put Options Trading Insights: Particularly, the $25 strike put option expiring on June 18, 2026, has recorded 800 contracts traded today, representing about 80,000 underlying shares, indicating investor concerns regarding a potential decline in Netgear's future stock price.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Movement: The S&P 500 Index is down 0.16%, while the Dow Jones Industrial Average is up 0.13%, and the Nasdaq 100 Index has decreased by 0.50%, reflecting investor concerns over the ongoing Iran conflict, which is dampening market sentiment.
- Rising Energy Prices: WTI crude oil prices have surged over 4% due to Iran's missile strikes on Israel and US bases, which not only limits stock market declines but also raises inflation expectations, potentially influencing future monetary policy decisions.
- Economic Data Performance: The US Q4 nonfarm productivity remained unchanged at 1.8%, while unit labor costs were revised up to 4.4% from 2.8%, exceeding market expectations, indicating economic resilience that may support the stock market.
- International Tensions Impact: Saudi Arabia and the UAE have taken steps toward joining the Iran war, potentially escalating the conflict, which increases market concerns about future geopolitical risks and drives investors towards safer assets.
See More
