A10 Networks Inc

A10 Networks posted a confident third quarter of fiscal 2025, beating Wall Street expectations on both the top and bottom lines as surging demand for AI infrastructure and cybersecurity solutions lifted revenue 11.9% year-over-year to $74.68 million, ahead of the $70.70 million consensus. Non-GAAP earnings per share came in at $0.23, topping the $0.21 analyst estimate by 8.24%, with the outperformance driven largely by a sharp acceleration in service provider revenue, which climbed to $47.80 million from $36.70 million a year ago as customers scaled AI-driven network deployments. Non-GAAP operating margin expanded to 24.7% from 22.6%, underscoring the operating leverage embedded in the model. The company returned $15.30 million to shareholders through buybacks and dividends while building a war chest of $370.90 million in cash and marketable securities, bolstered by a $225.00 million convertible note issuance earlier this year. Management pointed to an expanding enterprise pipeline and security-led revenue exceeding the company's 65% long-term target as evidence that A10's positioning within AI infrastructure and cybersecurity trends remains on track heading into the next quarter.