A10 Networks (ATEN): Assessing Valuation Following Q3 Earnings Growth and Share Buyback Completion

A10 Networks recently released its third quarter financials, reporting more revenue than the same period last year and steady profits. Investors also received updates on its quarterly dividend and share repurchase program.

See our latest analysis for A10 Networks.

After the latest earnings, A10 Networks' stock has begun to show renewed optimism, climbing in recent days as investors reacted to higher revenue and the completed share repurchase. While the year-to-date share price return of -3.6% lags the market, the 1-year total shareholder return of 7.8% shows the value of dividends and buybacks to long-term holders. Recent momentum suggests sentiment may be shifting after a quiet stretch.

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With A10 Networks’ shares trading well below analysts’ average price target and the business showing consistent growth, is there untapped value waiting for buyers? Or is the market already factoring in all the upside?

Most Popular Narrative: 24% Undervalued

At $17.49 a share, A10 Networks trades well below the most widely followed fair value estimate of $23. This creates a notable gap between price and narrative-driven expectation.

Strong momentum from global AI infrastructure investments and data center expansions, as enterprises and cloud providers require scalable, secure, and high-performance networking to support AI workloads, positioning A10 to capture accelerated top-line revenue growth and product demand. Increasingly complex and frequent cybersecurity threats are driving higher security spending by both enterprise and service provider customers, aligning A10's advanced security portfolio (including integrated DDoS, API, and WAF solutions) with expanding market needs, supporting sustainable revenue growth and margin expansion.

Read the complete narrative.

What’s the strategy powering that eye-catching gap? This narrative is betting big on innovation and future margins, not just today’s growth pace. Eager to discover the assumptions and bold projections that could make this target a reality? Unpack the calculation and see what sets this view apart.

Result: Fair Value of $23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, A10’s growth story still faces real tests, including possible delays in customer adoption of AI solutions and heavy reliance on big enterprise clients.

Find out about the key risks to this A10 Networks narrative.

Build Your Own A10 Networks Narrative

If you have a different perspective or want to chart your own conclusions from the data, you can craft your own view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding A10 Networks.

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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.

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