JFrog (NASDAQ:FROG) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• JFrog reported quarterly EPS of $0.32, beating the $0.23 consensus by $0.09, while revenue of $179.2 million exceeded estimates of $165.9 million and rose 30.9% year over year.
• Cloud revenue grew 60% to $101.5 million, with AI-related usage and broader security adoption supporting larger customer commitments; remaining performance obligations increased 60% to $812 million.
• JFrog raised its 2026 revenue forecast to $680 million–$682 million and expects cloud baseline growth of 52%–54%, citing continued business momentum.

JFrog (NASDAQ:FROG - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.23 by $0.09, FiscalAI reports. The firm had revenue of $179.17 million for the quarter, compared to analyst estimates of $165.92 million. JFrog had a negative return on equity of 1.58% and a negative net margin of 3.29%. The company's revenue was up 30.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.22 EPS.

Here are the key takeaways from JFrog's conference call:

• Q3 revenue rose 31% year over year to $179.2 million, exceeding the high end of guidance. Cloud revenue grew 60% to $101.5 million, while total revenue from Enterprise Plus subscriptions increased 42%.
• AI-driven usage and broader adoption of security and governance helped drive larger customer commitments, including a $76 million multi-year SaaS agreement with a major telecommunications company. JFrog said no single customer accounts for more than 3% of revenue.
• Expansion metrics strengthened: trailing four-quarter net dollar retention was 124%, gross retention was 97%, and remaining performance obligations grew 60% year over year to $812 million. Customers with more than $1 million in ARR increased 58% to 112.
• Profitability and cash generation improved, with a 22.7% operating margin and $66.5 million in free cash flow. JFrog raised full-year 2026 revenue guidance to $680 million–$682 million and baseline cloud growth guidance to 52%–54%; Q4 revenue is forecast at $183 million–$185 million.

JFrog Price Performance

FROG traded up $26.36 during trading on Friday, hitting $100.98. 7,028,737 shares of the stock traded hands, compared to its average volume of 2,064,903. The firm has a market capitalization of $12.45 billion, a P/E ratio of -561.00 and a beta of 1.31. JFrog has a 12-month low of $34.05 and a 12-month high of $105.76. The firm has a 50-day moving average of $93.42 and a 200 day moving average of $72.58.

Wall Street Analyst Weigh In

FROG has been the topic of a number of recent research reports. JPMorgan Chase & Co. increased their price target on shares of JFrog from $100.00 to $115.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Guggenheim boosted their price objective on shares of JFrog from $115.00 to $125.00 and gave the stock a "buy" rating in a report on Friday. DA Davidson reaffirmed a "buy" rating and issued a $115.00 price objective on shares of JFrog in a research note on Friday, September 4th. Wall Street Zen lowered shares of JFrog from a "buy" rating to a "hold" rating in a report on Saturday, October 24th. Finally, Barclays reaffirmed an "overweight" rating and set a $110.00 target price on shares of JFrog in a report on Friday, August 7th. Twenty-one investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, JFrog has a consensus rating of "Moderate Buy" and a consensus price target of $112.19.

Key Stories Impacting JFrog

Here are the key news stories impacting JFrog this week:

• Positive Sentiment: JFrog reported third-quarter adjusted EPS of $0.32, above the $0.23 consensus, while revenue of $179.2 million beat expectations of $165.9 million and grew 31% year over year. JFrog Shares Rally on Outlook Boost, 3Q Beat
• Positive Sentiment: AI-driven coding activity is boosting demand for JFrog’s software tools. Reports highlight cloud revenue growth of about 60%, reinforcing the view that the company is benefiting from wider adoption of AI coding agents. JFrog Cloud Revenue Surges 60% Amid AI-Driven Software Growth
• Positive Sentiment: The company raised its 2026 revenue outlook to $680–$682 million and projected cloud baseline growth of 52%–54%, signaling continued momentum beyond the quarterly beat. JFrog Projects 2026 Revenue and Cloud Growth
• Positive Sentiment: Several firms raised price targets and kept bullish ratings: RBC to $121, Truist to $120, KeyCorp to $118 and Canaccord to $110. These revisions reflect stronger analyst expectations after the results. Truist Raises JFrog Price Target
• Negative Sentiment: Piper Sandler raised its target from $90 to $95 but maintained a neutral rating; the target remains below the stock’s recent trading level, suggesting some analysts see limited near-term upside after the rally.

Insider Activity

In other news, CTO Yoav Landman sold 249,300 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $100.72, for a total transaction of $25,109,496.00. Following the completion of the sale, the chief technology officer directly owned 5,199,038 shares in the company, valued at approximately $523,647,107.36. This represents a 4.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Shlomi Ben Haim sold 45,700 shares of the firm's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $85.35, for a total value of $3,900,495.00. Following the completion of the sale, the chief executive officer directly owned 4,449,305 shares in the company, valued at $379,748,181.75. The trade was a 1.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 900,453 shares of company stock worth $85,299,266 over the last ninety days. 11.80% of the stock is owned by insiders.

About JFrog

JFrog Ltd. is a software company that provides a platform for managing, securing and distributing software packages and releases throughout the application development lifecycle. Its technology is designed to help organizations move software reliably from development through production across cloud, on-premises and hybrid environments.

The company's products include JFrog Artifactory, a repository for storing and managing software packages and container images; JFrog Xray, which provides security and compliance analysis for software components; and tools for continuous integration, continuous delivery, software distribution and release management.

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