Netgear (NTGR)
NASDAQ:NTGR
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Netgear
(NASDAQ:NTGR)
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Rating:55Neutral
Price Target:
$23.00
▼(-6.16% Downside)
Action:ReiteratedDate:03/26/26
NTGR scores mid-range primarily due to mixed financial performance—strong balance-sheet conservatism but pressured profitability and volatile/weak 2025 cash flow. The earnings call adds support from improving gross margins and enterprise/recurring revenue progress, though near-term guidance and cost/demand headwinds temper confidence. Technicals are mildly positive, while valuation remains challenged due to a negative P/E and no dividend data.
Positive Factors
Conservative balance sheet / low leverage
Netgear's very low leverage and conservative balance sheet provide durable financial flexibility. This reduces refinancing and solvency risk, allows continued investment in R&D and product transitions, supports buybacks and absorbs cyclical weak patches without forcing distress-driven actions.
Negative Factors
Multi-year revenue decline and return to net loss
A prolonged top-line decline and resumption of net losses signal structural demand and competitive challenges. Shrinking scale reduces operating leverage, makes fixed-cost absorption harder, and forces tradeoffs between margin restoration and market-share defense, risking persistent profitability pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Netgear's very low leverage and conservative balance sheet provide durable financial flexibility. This reduces refinancing and solvency risk, allows continued investment in R&D and product transitions, supports buybacks and absorbs cyclical weak patches without forcing distress-driven actions.
Read all positive factors
Netgear (NTGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$689.05M
Dividend YieldN/A
Average Volume (3M)549.13K
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth2.95%
EPS Growth-228.28%
CountryUS
Employees636
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.26
Shares Outstanding28,113,152
10 Day Avg. Volume518,963
30 Day Avg. Volume549,130
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 Cap0.77
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit2.10
Enterprise Value/Ebitda-30.08
Forecast
1Y Price Target
$36.00Price Target Upside46.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.15
Revenue Forecast (FY)$689.45M
Netgear Business Overview & Revenue Model
Company Description
NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in two segments, Connected Home, and Small and Medium Business. It offers smart home/con...
How the Company Makes Money
NETGEAR makes money primarily by selling networking hardware through retail, e-commerce, and distribution/channel partners (and in some cases directly to customers). Its core revenue stream is product revenue from consumer networking (e.g., WiFi r...
Netgear Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 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
41
Neutral
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 693.35M | 673.76M | 740.84M | 932.47M | 1.17B |
| Gross Profit | 250.96M | 195.93M | 249.25M | 250.55M | 365.84M |
| EBITDA | -17.53M | -65.80M | -25.04M | -23.82M | 80.50M |
| Net Income | -32.84M | 12.36M | -104.77M | -68.99M | 49.39M |
Balance Sheet | |||||
| Total Assets | 836.27M | 850.23M | 847.14M | 1.02B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 323.04M | 408.69M | 283.65M | 227.43M | 271.52M |
| Total Debt | 50.95M | 30.63M | 41.57M | 45.10M | 27.79M |
| Total Liabilities | 338.45M | 309.16M | 311.65M | 398.93M | 381.72M |
| Stockholders Equity | 497.82M | 541.07M | 535.50M | 620.86M | 696.82M |
Cash Flow | |||||
| Free Cash Flow | -18.91M | 155.80M | 51.05M | -19.49M | -14.44M |
| Operating Cash Flow | 1.61M | 164.80M | 56.85M | -13.73M | -4.58M |
| Investing Cash Flow | -22.64M | -26.16M | -27.43M | -79.52M | -9.98M |
| Financing Cash Flow | -55.51M | -28.91M | 797.00K | -24.02M | -68.12M |
Netgear Technical Analysis
Positive
24.51
Price Trends
21.34
Positive
23.03
Positive
25.99
Negative
Market Momentum
0.56
Negative
64.11
Neutral
60.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTGR, the sentiment is Positive. The current price of 24.51 is above the 20-day moving average (MA) of 22.13, above the 50-day MA of 21.34, and below the 200-day MA of 25.99, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 60.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.04B | 34.52 | 6.76% | ― | 1.46% | 78.77% | |
64 Neutral | $1.11B | -15.18 | -30.65% | ― | 14.33% | 83.32% | |
63 Neutral | $273.66M | 12.04 | 5.54% | ― | 10.89% | ― | |
62 Neutral | $1.06B | -25.95 | -10.08% | ― | 1.93% | -43.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $689.05M | -11.36 | -6.37% | ― | 2.95% | -228.28% | |
54 Neutral | $2.22B | 70.53 | 12.12% | ― | 14.31% | ― |
* Technology Sector Average
NTGR
Netgear
24.51
1.44
6.24%
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5.26%
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.