A month has gone by since the last earnings report for NETGEAR, Inc. (NTGR Quick QuoteNTGR - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is NETGEAR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

NETGEAR Q1 Earnings Beat Estimates

NETGEAR reported first-quarter 2026 non-GAAP earnings per share (EPS) of 6 cents compared with the Zacks Consensus Estimate of a loss of 8 cents. The company’s bottom line improved 200% year over year.

Quarterly net revenues of $158.8 million declined 2% year over year but topped the consensus estimate of $152.5 million by 4.1%. Revenues came within the management guidance of $145 million and $160 million.

The higher-margin Enterprise segment cushioned the performance, benefiting from growth in ProAV-managed switch products.

At the end of the first quarter, NETGEAR now has 559,000 recurring subscribers and $39.7 million in annual recurring revenues. 

For the second quarter of 2026, NETGEAR projects net revenues of $150 million to $165 million. The company expects end-user demand for ProAV managed switches to remain strong. However, the Consumer business is likely to be impacted by the rising cost of memory throughout the year, according to management. Service Provider and related products business revenues are forecast to be around $18 million, down nearly 33% year over year.

Quarter in Details

Driven by the ongoing momentum for ProAV managed switch products, revenues from the Enterprise segment (53% of total revenues) jumped 5.8% to $83.8 million. The company has added more than 50 partners to its AV ecosystem in the year, bringing total partnerships to 577. 

The company is also navigating supply-chain headwinds around certain managed switch products.

The Consumer segment’s revenues of $75 million fell 9.5% year over year. Weakness in sales to Service Providers and associated products, which declined 32% year on year, proved a drag. Excluding this, the core Consumer business was up 3%, driven by strength in the WiFi 7 lineup and growth in recurring revenue services. 

Our estimates for Enterprise and Consumer stood at $79.5 million and $73 million, respectively.

Region-wise, net revenues from the Americas were $105.9 million (67% of total revenues), down 1.8% year over year. Europe, the Middle East and Africa generated revenues (21%) of $33.5 million, up 4.2%. Revenues from the Asia Pacific region (12%) fell 12.1% year over year to $19.5 million.

Margin Details

Non-GAAP gross margin was 41.7%, up 670 basis points (bps) from the prior-year quarter, helped by transformation efforts and a shift towards enterprise business.

Enterprise segment’s non-GAAP gross margin came in at 52.7%, up 640 bps from the prior-year quarter. Consumer segment non-GAAP gross margin also improved 520 bps year over year to 29.4%, driven primarily by a favorable mix of Wi-Fi 7 products and a lower service provider mix, which partly offset the impact of higher memory costs.

The non-GAAP operating income was $1.7 million against an operating loss of $2.6 million in the year-ago quarter.

Non-GAAP operating expenses were $64.6 million, up 8.8% year over year.

Cash Flow & Liquidity

For the quarter ended March 29, 2026, cash and cash equivalents, and short-term investments were $296.5 million with $248.7 million of total current liabilities. Cash provided by operations was $1.6 million in the reported quarter.

It repurchased shares worth $20 million in the quarter under review. It announced additional authorization worth $75 million. The company now has $89 million worth of shares left under its existing authorization.

Guidance

The GAAP operating margin is forecasted between (8.4)% and (5.4)%. The non-GAAP operating margin is estimated to be (1)% to 2%. Management noted that the company has secured adequate memory for all 2026 production and continues with mitigation efforts with higher benefit to the enterprise business. GAAP tax expenses are anticipated to be a benefit of $0.8 million to $1.8 million, with non-GAAP tax expenses between $0.5 million and $1.5 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 14.29% due to these changes.

VGM Scores

At this time, NETGEAR has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, NETGEAR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

NETGEAR is part of the Zacks Communication - Components industry. Over the past month, Corning (GLW Quick QuoteGLW - Free Report) , a stock from the same industry, has gained 11.4%. The company reported its results for the quarter ended March 2026 more than a month ago.

Corning reported revenues of $4.35 billion in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $0.70 for the same period compares with $0.54 a year ago.

For the current quarter, Corning is expected to post earnings of $0.76 per share, indicating a change of +26.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Corning. Also, the stock has a VGM Score of C.