A10 Networks (ATEN) Stock Forecast & Price Target

A10 Networks is benefiting from a stronger mix of security-led sales, with secure-lead products rising to 72% of product revenue in 2025 and staying above 65% going forward, which supports a higher-quality growth profile. Its second quarter revenue of $80.1 million beat estimates, product revenue grew 25% year over year, and management raised the CY26 revenue growth midpoint to 13% from 11%, while EPS guidance implies 14% to 16% growth. The expanded multi-year Microsoft relationship should improve visibility and reduce customer concentration risk, while the TrojAI acquisition adds AI red-teaming and runtime protection, reinforcing durable demand across enterprise AI and cybersecurity use cases.

A10 Networks is facing a mixed but fragile operating backdrop, with enterprise revenue rising to $48.0MM in Q2 and up 73% y/y, yet that strength is partly tied to an updated Microsoft agreement that has increased investor concern about customer concentration and exposure risk. At the same time, service provider revenue fell to $32.1MM, down 23% y/y, showing that normalization in some areas has not offset weakness and that macro pressures are still weighing on demand. Although management said the enterprise pipeline has improved and deal quality is better, service provider trends remain under pressure, Japan is hurt by macroeconomic issues, and Europe remains challenged by geopolitical issues, limiting overall fundamental visibility.