NETGEAR, Inc. (NTGR) AI Stock Analysis

NETGEAR, Inc. designs, develops, and markets networking and Internet-connected solutions for consumers, businesses, and broadband service providers globally. The company operates through two segments: Connected Home and Small and Medium Business. Connected Home provides smart home and broadband access hardware, including Wi-Fi routers, home Wi-Fi systems, modems, gateways, hotspots, range extenders, Powerline adapters, and digital canvasses, alongside value-added services like technical support and cybersecurity protection. The Small and Medium Business segment offers Ethernet switches, Wi-Fi mesh systems, wireless access points, unified storage products, and Internet security appliances. Products are distributed via retailers, online channels, distributors, direct resellers, value-added resellers, and service providers.

NETGEAR's revenue fell from $1.17B in FY2021 to $932.5M in FY2022 and $740.8M in FY2023, before declining further to $673.8M in FY2024. In FY2025, revenue increased 2.9% to $693.4M, producing a gross margin of 36.2%, an operating margin of -5.1%, and a net loss of -$32.8M. Over the five years from FY2020 to FY2025, revenue posted a CAGR of -11.2%. For the trailing twelve months ended June 30, 2026, revenue stood at $694.4M with a profit margin of -3.7% and EPS of -$0.94. In the latest quarter ended June 30, 2026, quarterly revenue fell 1.2% year-over-year, while quarterly earnings dropped 68.7%.

As of June 30, 2026, NETGEAR held $267.9M in cash and short-term investments against total debt of $45.8M, resulting in a net cash position of $222.1M. The company reported total assets of $788.7M, shareholders' equity of $456.4M, a current ratio of 2.48, and a debt-to-equity ratio of 0.10. In FY2025, operating cash flow was $1.6M, while free cash flow stood at -$18.9M. Capital expenditures totaled $20.5M, and share buybacks reached $50.7M, contributing to an 8.2% reduction in share count over 5 years.

At a last close of $22.05 on October 16, 2026, NETGEAR had a market capitalization of $599.3M and an enterprise value of $382.8M. The stock trades at a forward P/E of 222.2x, well above the 18.8x median of its US-listed Technology peers. Its EV/EBITDA multiple of 395.8x also exceeds the peer median of 16.6x, while its price-to-sales ratio of 0.9x is lower than the peer median of 2.8x. Over the past year, NTGR declined 32.1%, compared to a 16.8% gain for the S&P 500 (SPY), and its 5-year return of -33.0% trailed the S&P 500's 83.0% gain.

Wall Street coverage consists of 2 Strong Buy, 1 Buy, 0 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target is $33.00, representing an implied upside of 49.7% over the last close of $22.05. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.28 on revenue of $678.2M. For next fiscal year, 3 analysts project revenue of $720.8M and EPS of $0.54. NETGEAR beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for November 4, 2026.

This page is an AI-written research summary of NETGEAR, Inc. (NTGR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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