Netgear (NTGR)
NASDAQ:NTGR
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Netgear
(NASDAQ:NTGR)
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Rating:53Neutral
Price Target:
$27.00
▼(-1.85% Downside)
Action:Reiterated
Date:06/03/26
Overall score reflects weak financial performance (sharp TTM revenue decline, losses, and negative/volatile free cash flow) partially offset by low leverage and improved gross margin. Technicals are moderately supportive with price above key moving averages and positive MACD, while valuation is limited by negative earnings; corporate events add a small positive tailwind via FCC conditional approval and governance stability.
Positive Factors
Regulatory Approval / Competitive Trust
The FCC conditional approval is a structural advantage: it preserves NETGEAR's ability to push firmware updates and launch new U.S. consumer routers beyond the March 2027 deadline, reinforces trust with security-conscious customers and channel partners, and differentiates it amid tightening federal router rules.
Negative Factors
Severe Revenue Decline
A near 47% TTM revenue decline is a durable structural concern: it erodes scale, weakens channel relationships, and reduces fixed-cost absorption. Persistent top-line contraction makes it harder to regain sustainable margins and requires material improvements in demand or market share to reverse.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory Approval / Competitive Trust
The FCC conditional approval is a structural advantage: it preserves NETGEAR's ability to push firmware updates and launch new U.S. consumer routers beyond the March 2027 deadline, reinforces trust with security-conscious customers and channel partners, and differentiates it amid tightening federal router rules.
Read all positive factors
Netgear (NTGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$648.18M
Dividend YieldN/A
Average Volume (3M)432.48K
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth3.66%
EPS Growth-200.01%
CountryUS
Employees636
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-1.40
Shares Outstanding26,839,903
10 Day Avg. Volume440,455
30 Day Avg. Volume432,480
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.42
Price to Sales (P/S)1.02
P/FCF Ratio-37.48
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit2.17
Enterprise Value/Ebitda-36.35
Forecast
1Y Price Target
$36.00Price Target Upside30.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.12
Revenue Forecast (FY)$670.67M
Netgear Business Overview & Revenue Model
Company Description
NETGEAR, Inc. specializes in the conceptualization, engineering, and distribution of a broad spectrum of networking and internet-enabled devices. The company caters to a diverse clientele, encompassing individual consumers, corporate entities, and...
How the Company Makes Money
NETGEAR makes money primarily by selling networking hardware and, to a lesser extent, by selling software and services tied to that hardware. Its largest revenue stream is product revenue from consumer and small/medium business networking devices ...
Netgear Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call emphasized a meaningful operational turnaround: revenue growth, record gross margins, returning to full-year non-GAAP profitability, strong enterprise momentum, ARR/subscriber growth, and improving working capital. These material achievements were balanced by clear near-term headwinds—most notably escalating DDR4 memory shortages and consumer demand softness—that could pressure margins and results in H1/H2 2026. Management communicated concrete mitigation plans (procurement changes, pricing actions, cost-sharing, OpEx discipline), progress on supply constraints for enterprise managed switches, and strategic investments (software insourcing, OS license) that support longer-term margin expansion and higher-quality revenue. Overall, the positive fundamental improvements and profitability achieved in 2025 outweigh the noted near-term risks, but execution of mitigation actions will be important to sustain momentum into 2026.Positive Updates
Return to Revenue Growth
Full-year 2025 net revenue of $699.6M, up 3.8% year over year; full-year revenue grew by more than $25M compared to 2024.
Negative Updates
Memory Shortage and Pricing Pressure
Escalating DDR4 memory shortages driven by AI data center demand create an uncertain cost headwind—company expects limited gross margin impact in H1 2026 but acknowledged potential outsized impact in H2 if mitigations fail; CFO flagged ~100 bps gross margin headwind in Q1 related to rising memory costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Revenue Growth
Full-year 2025 net revenue of $699.6M, up 3.8% year over year; full-year revenue grew by more than $25M compared to 2024.
Read all positive updates
Company Guidance
NETGEAR guided Q1 2026 net revenue of $145–$160 million, with GAAP operating margin of -16.3% to -13.3% and non‑GAAP operating margin of -6% to -3%, and warned of roughly a 100‑basis‑point gross‑margin headwind in Q1 from rising DDR4 memory costs; it expects service‑provider/related revenue of about $20 million in Q1 (≈35% YoY decline), GAAP tax of $1–$2 million and non‑GAAP tax of $0.3–$1.3 million for 2026, and said enterprise demand should remain strong with supply improving and price increases beginning to take effect, while overall it anticipates limited margin impact in H1 but an uncertain, potentially outsized consumer impact in H2 and roughly a +4.5–5% sequential rebound into Q2.Netgear Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
72
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 690.11M | 693.35M | 673.76M | 740.84M | 932.47M | 1.17B |
| Gross Profit | 258.93M | 250.96M | 195.93M | 249.25M | 250.55M | 365.84M |
| EBITDA | -15.47M | -17.53M | -65.80M | -25.04M | -23.82M | 80.50M |
| Net Income | -39.84M | -32.84M | 12.36M | -104.77M | -68.99M | 49.39M |
Balance Sheet | ||||||
| Total Assets | 801.93M | 836.27M | 850.23M | 847.14M | 1.02B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 296.51M | 323.04M | 408.69M | 283.65M | 227.43M | 271.52M |
| Total Debt | 48.09M | 50.95M | 30.63M | 41.57M | 45.10M | 27.79M |
| Total Liabilities | 330.78M | 338.45M | 309.16M | 311.65M | 398.93M | 381.72M |
| Stockholders Equity | 471.15M | 497.82M | 541.07M | 535.50M | 620.86M | 696.82M |
Cash Flow | ||||||
| Free Cash Flow | -10.94M | -18.91M | 155.80M | 51.05M | -19.49M | -14.44M |
| Operating Cash Flow | 12.00M | 1.61M | 164.80M | 56.85M | -13.73M | -4.58M |
| Investing Cash Flow | -25.36M | -22.64M | -26.16M | -27.43M | -79.52M | -9.98M |
| Financing Cash Flow | -72.98M | -55.51M | -28.91M | 797.00K | -24.02M | -68.12M |
Netgear Technical Analysis
Negative
27.51
Price Trends
25.14
Negative
23.17
Positive
25.70
Negative
Market Momentum
>-0.01
Positive
43.01
Neutral
21.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTGR, the sentiment is Negative. The current price of 27.51 is above the 20-day moving average (MA) of 25.48, above the 50-day MA of 25.14, and above the 200-day MA of 25.70, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 21.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTGR.
Netgear Risk Analysis
Netgear disclosed 39 risk factors in its most recent earnings report. Netgear reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Netgear Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.50B | 57.61 | 6.72% | ― | 13.48% | 0.69% | |
66 Neutral | $3.76B | 234.68 | 21.07% | ― | 14.90% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.16B | -32.07 | -24.02% | ― | 18.84% | 77.12% | |
60 Neutral | $1.45B | -35.08 | -10.31% | ― | -27.47% | -181.91% | |
56 Neutral | $243.13M | 26.93 | 3.37% | ― | 0.23% | ― | |
53 Neutral | $648.18M | -16.96 | -7.97% | ― | 3.66% | -200.01% |
* Technology Sector Average
NTGR
Netgear
23.92
-5.91
-19.81%
ADTN
Adtran
14.95
7.11
90.69%
AVNW
Aviat Networks
18.35
-4.44
-19.48%
DGII
Digi International
64.37
29.92
86.85%
EXTR
Extreme Networks
28.58
11.89
71.24%
HLIT
Harmonic
13.50
4.32
47.06%
Netgear Corporate Events
Executive/Board ChangesShareholder Meetings
Netgear Shareholders Approve Directors, Auditor and Pay Plan
Positive
Jun 2, 2026
On May 28, 2026, Netgear, Inc. held its 2026 Annual Meeting of Stockholders virtually, with 22,948,062 shares represented, constituting a quorum, and stockholders voting on the election of six directors, ratification of the independent auditor, an...
Executive/Board ChangesShareholder Meetings
Netgear Director Announces Planned Departure and Board Transition
Neutral
Apr 16, 2026
On April 12, 2026, NETGEAR director Bradley L. Maiorino notified the company that he would not stand for re-election at the 2026 Annual Meeting of Stockholders, citing increased demands from a new full-time executive role rather than any disagreem...
Business Operations and StrategyRegulatory Filings and Compliance
Netgear Gains FCC Conditional Approval for Consumer Routers
Positive
Apr 14, 2026
In March 2026, the Federal Communications Commission’s Public Safety and Homeland Security Bureau placed all foreign-produced routers on its Covered List, triggering tighter security rules for consumer networking gear. NETGEAR has now become...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.