A10 Networks, Inc. (NYSE:ATEN) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of US$75m, some 3.3% above estimates, and statutory earnings per share (EPS) coming in at US$0.17, 28% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from A10 Networks' seven analysts is for revenues of US$324.3m in 2026. This reflects a meaningful 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to US$0.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$321.9m and earnings per share (EPS) of US$0.67 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to US$28.50. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic A10 Networks analyst has a price target of US$32.00 per share, while the most pessimistic values it at US$25.00. This is a very narrow spread of estimates, implying either that A10 Networks is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting A10 Networks' growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, A10 Networks is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards A10 Networks following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that A10 Networks' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on A10 Networks. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for A10 Networks going out to 2028, and you can see them free on our platform here..

We also provide an overview of the A10 Networks Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.