A10 Network

A10 Networks reported second-quarter revenue of $80.1 million, up 15.5% year over year, and raised its full-year 2026 guidance for both revenue and earnings per share. Product revenue grew 25% to $49 million, while service revenue was $31.1 million, or 39% of total revenue. Non-GAAP diluted EPS was $0.25, up from $0.21 a year earlier, and adjusted EBITDA was $25.4 million, or 30.5% of revenue. The company now expects full-year revenue growth of 12% to 14%, up from 10% to 12%, and EPS growth of 14% to 16%, up from 12% to 14%. Management cited an expanded multiyear agreement with Microsoft and the acquisition of AI security firm Troj.ai as key drivers.

Small and mid-cap AI stocks have significantly outperformed large caps in the first half of 2026, with the Russell 2000 and S&P 600 up 20% and 21% respectively, compared to an 8.5% gain for the S&P 500. Five stocks that have more than doubled this year and hold favorable Zacks Ranks are Bandwidth, Arteris, Penguin Solutions, A10 Networks, and Veeco Instruments. Bandwidth, a Zacks Rank #1, operates a conversational AI platform and expects 18.3% revenue growth this year. Arteris, a Zacks Rank #2, provides system IP for AI and automotive chips and projects 34.4% revenue growth. Penguin Solutions, also a Zacks Rank #1, offers AI infrastructure solutions and anticipates 25% revenue growth next year. A10 Networks, a Zacks Rank #2, delivers application networking for AI data centers and expects 11.9% revenue growth. Veeco Instruments, a Zacks Rank #1, makes thin film process equipment for AI hardware and forecasts 20.2% revenue growth.