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SAN JOSE, Calif. - A10 Networks (ATEN), a cybersecurity firm with a market capitalization of $1.32 billion and impressive gross profit margins of 80%, has been chosen by Microsoft to provide security for mission-critical generative AI workloads, according to a press release issued Wednesday.
The cybersecurity firm will deliver specialized threat detection and mitigation capabilities designed for hyperscale AI deployments. The selection highlights A10’s capabilities in scaling protection for AI-optimized infrastructure.
"We’re proud to support the buildout of the world’s most advanced AI platforms as part of a collaboration and help ensure continuous protection for billions of transactions powering tomorrow’s innovation," said Dhrupad Trivedi, A10’s board chair and CEO.
A10 Networks, founded in 2004 and based in San Jose, California, provides security and infrastructure solutions for various computing environments including on-premises, hybrid cloud, and edge-cloud. The company reports having more than 7,000 customers across global enterprises, communications providers, and cloud and web service companies. According to InvestingPro data, the company maintains strong financial health with more cash than debt on its balance sheet and generates annual revenue of $267 million.
The announcement comes as major technology companies continue investing in infrastructure to support the growing demands of generative AI applications, which require robust security measures to protect sensitive data and maintain operational reliability.
The collaboration represents a significant customer win for A10 Networks in the expanding market for AI security solutions. With its current trading price near Fair Value according to InvestingPro analysis, which includes over 10 additional exclusive insights and a comprehensive Pro Research Report available to subscribers, investors may want to closely monitor this growing player in the AI security space.
In other recent news, A10 Networks reported a strong financial performance for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $0.20, exceeding the expected $0.19, and reported revenue of $66.1 million, which was higher than the anticipated $63.39 million. This represents a 9% year-over-year revenue growth, with enterprise revenue increasing by 18%. Despite these positive results, A10 Networks’ stock price experienced a slight decline after the earnings announcement.
In addition to its financial results, A10 Networks announced the acquisition of ThreatX Protect’s assets and key personnel, aiming to enhance its cybersecurity portfolio. This acquisition will expand the company’s offerings with web application and API protection solutions. The company continues to focus on AI-driven solutions and has expressed confidence in maintaining high single-digit revenue growth and sustaining an EBITDA margin of 26-28%.
A10 Networks also highlighted the ongoing demand for its solutions in AI data centers, noting that the rise of AI is driving demand in both the enterprise and service provider segments. The firm remains engaged with its customers on future AI initiatives, providing solutions that offer efficiency and security. Analyst firms, such as BTIG, have shown interest in A10 Networks’ strategic positioning and future growth potential.
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