Radware (NASDAQ:RDWR) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Radware beat quarterly expectations: Earnings were $0.32 per share versus the $0.29 consensus, while revenue rose 12% year over year to $84.36 million, exceeding estimates of $83.02 million.
• Cloud and recurring revenue continued to accelerate: Total ARR increased 11% to approximately $266 million, and cloud ARR grew 21% to $107 million, supported by demand for the company’s cloud, API, DDoS and AI-security offerings.
• Fourth-quarter guidance was positive despite margin pressures: Radware expects revenue of $88 million–$90 million and non-GAAP EPS of $0.34–$0.35, while noting headwinds from currency appreciation, product mix, supply-chain costs and lower financial income.

Radware (NASDAQ:RDWR - Get Free Report) posted its quarterly earnings data on Wednesday. The information technology services provider reported $0.32 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.03, FiscalAI reports. Radware had a return on equity of 7.47% and a net margin of 5.34%. The company had revenue of $84.36 million during the quarter, compared to analyst estimates of $83.02 million. During the same quarter last year, the company earned $0.28 EPS. The firm's revenue for the quarter was up 12.0% on a year-over-year basis.

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

• Record revenue and recurring-revenue growth: Q3 revenue rose 12% year over year to $84.4 million, while total ARR increased 11% to approximately $266 million and cloud ARR grew 21% to $107 million. Cloud represented 41% of total ARR, up from 37% a year earlier.
• Radware reported strong demand for its integrated cloud security platform, including WAF, API, DDoS and AI-security capabilities. Management cited meaningful API-security wins, initial adoption of Xploit Shield and agentic-AI offerings, and expects the newer AI-environment products to become a more significant growth opportunity in 2027.
• The on-premise business is benefiting from an infrastructure refresh cycle, with less than one-third of the end-of-sale install base upgraded so far. A major global cloud provider also selected Radware to expand and modernize its DDoS protection infrastructure.
• Profitability was pressured by Israeli shekel appreciation, product mix and supply-chain costs: reported operating income was essentially flat year over year at $11.9 million, while net income declined 6% and diluted EPS fell to $0.32 from $0.33. Management expects lower interest rates and a reduced cash balance following share repurchases to remain a modest headwind to financial income.
• Management guided Q4 revenue to $88 million–$90 million and non-GAAP diluted EPS to $0.34–$0.35, while emphasizing continued investment in sales capacity, AI security, API security and global mitigation infrastructure. Radware repurchased approximately $13.7 million of stock in Q3 and ended the quarter with $421.5 million in cash, deposits and marketable securities.

Radware Stock Performance

Shares of NASDAQ RDWR traded up $0.21 during midday trading on Wednesday, reaching $35.71. The stock had a trading volume of 453,232 shares, compared to its average volume of 274,834. The stock has a 50-day moving average of $29.28 and a 200-day moving average of $27.55. Radware has a 12-month low of $21.68 and a 12-month high of $38.50. The company has a market capitalization of $1.50 billion, a price-to-earnings ratio of 93.97 and a beta of 0.86.

Insider Activity

In other Radware news, CFO Guy Avidan purchased 2,000 shares of the stock in a transaction that occurred on Friday, July 31st. The stock was purchased at an average price of $25.21 per share, with a total value of $50,420.00. Following the acquisition, the chief financial officer owned 95,800 shares in the company, valued at approximately $2,415,118. The trade was a 2.13% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Gabriel Malka sold 6,500 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $30.00, for a total value of $195,000.00. Following the completion of the sale, the chief operating officer directly owned 47,922 shares of the company's stock, valued at $1,437,660. The trade was a 11.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 21.58% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

RDWR has been the topic of several recent analyst reports. Weiss Ratings raised shares of Radware from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, October 13th. Wall Street Zen raised shares of Radware from a "hold" rating to a "buy" rating in a report on Tuesday, October 13th. Two research analysts have rated the stock with a Hold rating. Based on data from MarketBeat, Radware currently has a consensus rating of "Hold" and a consensus target price of $25.00.

About Radware

Radware Ltd. NASDAQ: RDWR is a global provider of cybersecurity and application delivery solutions. The company helps organizations protect digital applications, networks and cloud environments from cyberattacks while maintaining the availability and performance of online services.

Its portfolio includes distributed denial-of-service (DDoS) protection, web application and API security, bot management, cloud security services, and network behavior analysis. Radware also offers application delivery controllers, load balancing and related traffic-management technologies designed to improve the reliability, scalability and performance of business-critical applications.

Founded in 1996, Radware serves enterprises, telecommunications providers, cloud service providers and other organizations worldwide through a combination of on-premises, cloud-based and hybrid solutions.

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