Radware (NASDAQ:RDWR) Announces Earnings Results

Key Points

• Radware beat quarterly expectations: EPS was $0.30 versus the $0.28 consensus, while revenue reached $82.28 million, up 10.9% year over year. Cloud ARR grew 22% to more than $100 million, with subscriptions accounting for 55% of revenue.
• Growth remained strong but profitability faced pressure: Demand for cloud security, API Security and AI-related products supported customer wins and pipeline growth, while Americas revenue rose 24%. However, higher costs and Israeli shekel appreciation reduced gross margin and weighed on operating income.
• Shares fell 13.5% despite the earnings beat: Management guided for third-quarter revenue of $82.5 million to $83.5 million and EPS of $0.28 to $0.29. Analysts maintain an average “Hold” rating with a $30 consensus price target.

Radware (NASDAQ:RDWR - Get Free Report) posted its earnings results on Wednesday. The information technology services provider reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.28 by $0.02, FiscalAI reports. The company had revenue of $82.28 million for the quarter, compared to the consensus estimate of $81.49 million. Radware had a return on equity of 7.69% and a net margin of 6.28%.Radware's quarterly revenue was up 10.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.28 earnings per share. Radware updated its Q3 2026 guidance to 0.280-0.290 EPS.

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

• Record revenue and cloud growth: Q2 revenue rose 11% year over year to $82.3 million, while cloud ARR increased 22% and surpassed $100 million. Subscription revenue represented 55% of total revenue, supporting Radware’s recurring-revenue strategy.
• Growing demand for the security platform: API Security, Exploit Shield, and AI-related offerings are generating customer wins, proof-of-concepts, and pipeline opportunities. Management said cloud-security pipeline growth is outpacing ARR growth, with increasing customer interest in consolidating application, API, and infrastructure protection.
• Regional and on-premise momentum: Americas revenue grew 24% year over year, and management reported early improvement in Asia-Pacific following go-to-market investments. DefensePro X also benefited from an ongoing infrastructure refresh cycle, including a seven-digit global customer deal.
• Currency and cost pressures weighed on profitability: Gross margin declined to 81.8% from 82.4%, while reported operating income fell to $10.9 million and diluted EPS declined to $0.30, primarily due to Israeli shekel appreciation. Radware expects lower financial income to remain a modest headwind in the second half of 2026.
• Third-quarter outlook: Management forecast revenue of $82.5 million to $83.5 million, non-GAAP operating expenses of $57 million to $58 million, and diluted EPS of $0.28 to $0.29. The company ended the quarter with $422.9 million in cash, equivalents, deposits, and marketable securities after repurchasing approximately $18.8 million of stock.

Radware Stock Down 13.5%

Shares of NASDAQ RDWR traded down $3.81 during trading on Wednesday, hitting $24.39. 184,488 shares of the company traded hands, compared to its average volume of 256,529. Radware has a 1 year low of $21.68 and a 1 year high of $32.79. The company has a 50-day moving average price of $29.44 and a 200-day moving average price of $26.91. The firm has a market capitalization of $1.03 billion, a P/E ratio of 56.73 and a beta of 0.84.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Needham & Company LLC reiterated a "hold" rating on shares of Radware in a research report on Thursday, May 7th. Wall Street Zen upgraded shares of Radware from a "hold" rating to a "buy" rating in a report on Saturday, April 4th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $30.00.

Insider Buying and Selling at Radware

In related news, insider Rivkah Goldriech sold 1,375 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $29.50, for a total value of $40,562.50. Following the transaction, the insider directly owned 60,741 shares of the company's stock, valued at approximately $1,791,859.50. This trade represents a 2.21% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Gabriel Malka sold 3,111 shares of Radware stock in a transaction on Friday, May 8th. The shares were sold at an average price of $29.00, for a total value of $90,219.00. Following the completion of the transaction, the chief operating officer owned 61,422 shares in the company, valued at $1,781,238. The trade was a 4.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 5,236 shares of company stock worth $154,782 over the last ninety days. Corporate insiders own 21.58% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Morgan Stanley increased its position in shares of Radware by 28.9% in the fourth quarter. Morgan Stanley now owns 2,619,687 shares of the information technology services provider's stock worth $63,108,000 after acquiring an additional 588,064 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Radware by 28.7% during the 4th quarter. First Trust Advisors LP now owns 1,562,396 shares of the information technology services provider's stock valued at $37,638,000 after acquiring an additional 348,824 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Radware by 1.6% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,538,854 shares of the information technology services provider's stock worth $40,769,000 after purchasing an additional 24,363 shares during the period. State Street Corp boosted its position in Radware by 1.8% during the 4th quarter. State Street Corp now owns 458,941 shares of the information technology services provider's stock worth $11,056,000 after purchasing an additional 8,199 shares during the period. Finally, Man Group plc increased its holdings in Radware by 59.5% in the 3rd quarter. Man Group plc now owns 432,056 shares of the information technology services provider's stock valued at $11,445,000 after purchasing an additional 161,159 shares in the last quarter. 73.12% of the stock is owned by institutional investors and hedge funds.

About Radware

Radware Ltd. provides cybersecurity and application delivery solutions designed to ensure the availability, performance and security of mission‐critical applications. Its product portfolio includes on‐premises and cloud‐based offerings such as Alteon application delivery controllers, DefensePro network behavior analysis for DDoS mitigation and AppWall web application firewall. The company's platforms use real‐time behavioral analysis, machine learning and automation to protect against distributed denial‐of‐service attacks, application layer threats and network intrusions.

Founded in 1997, Radware is co-headquartered in Tel Aviv, Israel, with a principal U.S.

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