# NETGEAR Forecasts Q4 Non-GAAP Operating Margin of 0% to 3%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/50036
Published: 2026-11-06T11:19:55.000Z
Updated: 2026-11-06T11:19:55.000Z
Section: Business

> The company projects fourth-quarter revenue of $160 million to $175 million and expects manufacturing constraints to continue into early 2027.

NETGEAR forecast fourth-quarter revenue of $160 million to $175 million and a non-GAAP operating margin of 0% to 3%, with manufacturing constraints expected to limit product availability into early 2027.

The outlook covers the three months ending Dec. 31. NETGEAR also projected a GAAP operating margin of negative 8.7% to negative 5.7%. Its non-GAAP measure excludes estimated stock-based compensation, amortization of intangible assets, and restructuring and other charges. The company says non-GAAP measures should not replace GAAP results.

Consolidated gross margin is expected to face about 150 basis points of sequential pressure, equivalent to 1.5 percentage points compared with the third quarter. Higher memory costs and transportation expenses tied to production recovery are expected to weigh on the measure. Revenue from service-provider and related products is forecast at about $17 million, roughly 28% below the year-earlier quarter.

Manufacturing challenges at a key production partner have limited NETGEAR’s ability to meet demand. CFO Bryan Murray said the near-term revenue outlook “remains constrained by manufacturing output and the timing of product availability,” with constraints expected to persist into the first quarter of 2027. NETGEAR expects production execution may still fall short of customer demand during the fourth quarter.

For the third quarter ended Sept. 27, revenue was $167.345 million, down 9.3% from a year earlier. Non-GAAP operating income was $3.348 million, equal to a 2.0% margin. Enterprise revenue was $90.7 million, down 0.1%, while Consumer revenue fell 18.2% to $76.6 million.

Enterprise customer sell-through rose about 6% year over year. Enterprise backlog at the end of the third quarter was more than 2.5 times its level at the end of the second quarter. NETGEAR’s fourth-quarter forecast covers the period ending Dec. 31, with manufacturing constraints expected to extend into the following quarter.