JFrog (NASDAQ:FROG) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• JFrog beat quarterly expectations: EPS was $0.27 versus the $0.24 consensus, while revenue rose 28.7% year over year to $163.8 million, exceeding analyst estimates.
• Cloud and security drove growth: Cloud revenue increased 53% to $87.5 million, while customers generating more than $1 million annually grew to 97 and net dollar retention reached 121%.
• Management raised its outlook: Fiscal 2026 revenue guidance increased to $648 million-$652 million and adjusted EPS guidance to $0.96-$1.00; analysts subsequently raised several price targets, though insider selling remains a consideration.

JFrog (NASDAQ:FROG - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.03, FiscalAI reports. The business had revenue of $163.77 million during the quarter, compared to analyst estimates of $155.63 million. JFrog had a negative return on equity of 2.76% and a negative net margin of 7.35%.JFrog's revenue for the quarter was up 28.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.18 earnings per share. JFrog updated its Q3 2026 guidance to 0.220-0.240 EPS and its FY 2026 guidance to 0.960-1.000 EPS.

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

• Q2 results exceeded guidance across all key metrics: Revenue rose 29% year over year to $163.8 million, while record free cash flow reached $53.8 million, or a 33% margin.
• Cloud growth remained the primary growth engine. Cloud revenue increased 53% to $87.5 million and represented 53% of total revenue, supported by strong usage, AI-driven software artifact volumes, and increased security adoption.
• Enterprise expansion and security demand strengthened. Customers spending over $1 million annually grew 59% to 97, net dollar retention reached 121%, and 80% of new customers entering the million-dollar cohort added security products.
• Management raised its full-year outlook: 2026 revenue guidance increased to $648 million-$652 million, baseline cloud growth was raised to 41%-43%, and the net dollar retention floor was lifted to 120%.
• Management discussed a self-hosted Artifactory vulnerability identified by an OpenAI model; JFrog said its SaaS environment was not breached, rapidly issued a patch for self-hosted customers, and characterized the incident as reinforcing demand for cloud and security offerings, though it highlights ongoing software supply-chain risk.

JFrog Stock Up 7.8%

FROG stock traded up $6.48 during midday trading on Friday, hitting $89.52. The company's stock had a trading volume of 4,369,537 shares, compared to its average volume of 2,188,246. JFrog has a 12 month low of $34.05 and a 12 month high of $99.22. The company has a 50 day moving average of $85.16 and a two-hundred day moving average of $63.11. The firm has a market capitalization of $10.84 billion, a price-to-earnings ratio of -241.94 and a beta of 1.22.

Insider Activity

In other news, CTO Yoav Landman sold 45,000 shares of the firm's stock in a transaction dated Friday, July 17th. The stock was sold at an average price of $87.23, for a total transaction of $3,925,350.00. Following the completion of the transaction, the chief technology officer owned 5,493,338 shares in the company, valued at $479,183,873.74. This trade represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Tali Notman sold 22,015 shares of the business's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $83.95, for a total value of $1,848,159.25. Following the completion of the sale, the executive owned 706,629 shares in the company, valued at $59,321,504.55. This represents a 3.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 938,649 shares of company stock valued at $76,347,827. Company insiders own 11.80% of the company's stock.

Institutional Trading of JFrog

Large investors have recently added to or reduced their stakes in the company. Whale Rock Capital Management LLC grew its holdings in JFrog by 82.2% during the 4th quarter. Whale Rock Capital Management LLC now owns 5,297,812 shares of the company's stock valued at $330,901,000 after purchasing an additional 2,389,415 shares during the last quarter. Invesco Ltd. raised its position in JFrog by 6,868.3% in the 4th quarter. Invesco Ltd. now owns 2,104,071 shares of the company's stock worth $131,420,000 after purchasing an additional 2,073,876 shares during the period. Morgan Stanley lifted its stake in JFrog by 550.2% in the fourth quarter. Morgan Stanley now owns 1,562,151 shares of the company's stock worth $97,572,000 after purchasing an additional 1,321,899 shares during the last quarter. Lazard Asset Management LLC lifted its stake in JFrog by 1,669.6% in the third quarter. Lazard Asset Management LLC now owns 1,185,416 shares of the company's stock worth $56,106,000 after purchasing an additional 1,118,427 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of JFrog by 234.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,103,090 shares of the company's stock valued at $68,899,000 after buying an additional 773,597 shares during the period. Institutional investors own 85.02% of the company's stock.

Key Headlines Impacting JFrog

Here are the key news stories impacting JFrog this week:

• Positive Sentiment: Q2 results beat expectations. JFrog reported adjusted earnings of $0.27 per share versus the $0.24 consensus estimate, while revenue rose 28.7% year over year to $163.8 million, above both analyst expectations and the company’s prior guidance. JFrog Q2 Earnings Beat Estimates on Cloud and Security Growth
• Positive Sentiment: Cloud and security momentum strengthened. Cloud revenue jumped 53% to approximately $87.5 million, representing 53% of total revenue. JFrog also reported 97 customers with more than $1 million in annual recurring revenue and 121% net dollar retention, supporting the company’s expansion and recurring-revenue outlook. JFrog stock jumps as Q2 results top guidance and full-year outlook moves higher
• Positive Sentiment: JFrog raised its outlook. Fiscal 2026 revenue guidance increased to $648 million-$652 million from $628 million-$632 million, while adjusted EPS guidance rose to $0.96-$1.00. Third-quarter guidance of $164 million-$166 million in revenue and $0.22-$0.24 in EPS also exceeds consensus estimates. JFrog forecasts 2026 revenue amid cloud growth outlook
• Positive Sentiment: Analysts raised targets following the report. Benchmark raised its target to $120 and JPMorgan, Oppenheimer, and BTIG lifted theirs to $115. Truist increased its target to $110, while Piper Sandler raised its target to $90 but retained a neutral rating. Analyst price-target updates
• Neutral Sentiment: Software stocks broadly moved higher as solid earnings reduced concerns about artificial-intelligence disruption, providing a favorable sector backdrop for FROG. Stocks that explain today’s market
• Negative Sentiment: Recent insider-trading data shows company insiders recorded numerous open-market sales and no purchases over the past six months. This may temper enthusiasm, although the selling can also reflect scheduled transactions or equity compensation.

Analyst Upgrades and Downgrades

FROG has been the subject of a number of recent research reports. Citigroup reiterated a "buy" rating on shares of JFrog in a research note on Monday, June 8th. JPMorgan Chase & Co. lifted their price target on shares of JFrog from $100.00 to $115.00 and gave the company an "overweight" rating in a report on Friday. Benchmark upped their price target on shares of JFrog from $100.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday. Raymond James Financial set a $120.00 price objective on shares of JFrog in a research note on Friday. Finally, BTIG Research raised their price objective on shares of JFrog from $100.00 to $115.00 and gave the company a "buy" rating in a research report on Friday. Twenty-one equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $105.81.

JFrog Company Profile

JFrog is a software company specializing in DevOps solutions designed to streamline the management, distribution and security of software binaries. Its core offering, JFrog Artifactory, serves as a universal artifact repository manager compatible with all major package formats, enabling development teams to store, version and share build artifacts across the software delivery pipeline. The company's platform also includes tools for continuous integration and delivery (CI/CD), security scanning and release automation.

Among JFrog's flagship products are JFrog Xray, a security and compliance scanning service that analyzes artifacts and dependencies for vulnerabilities; JFrog Pipelines, a CI/CD orchestration engine that automates build and release workflows; and JFrog Distribution, which accelerates the secure distribution of software releases to edge nodes and end users.

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