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

Key Points

• Radware beat Q1 expectations, reporting adjusted EPS of $0.30 versus the $0.27 consensus and revenue of $79.8 million, up about 11% year over year.
• Growth was driven by cloud and security offerings, with Cloud ARR rising 23% to $98 million and the company seeing strong traction in its API security and DefensePro X products.
• Management issued upbeat Q2 guidance, projecting revenue of $81 million to $82 million and non-GAAP EPS of $0.28 to $0.29, while also noting cost pressure from foreign exchange and memory components.

Radware (NASDAQ:RDWR - Get Free Report) issued its quarterly earnings data on Thursday. The information technology services provider reported $0.30 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.03, Briefing.com reports. The business had revenue of $79.81 million for the quarter, compared to analyst estimates of $78.72 million. Radware had a return on equity of 7.60% and a net margin of 6.28%.The firm's revenue for the quarter was up 10.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.27 EPS.

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

• Q1 revenue was $79.8M (+11% YoY) with diluted EPS of $0.30, the fourth quarter of double‑digit growth in the past five quarters; the company ended Q1 with ~ $434M in liquidity and repurchased ~$29.4M of shares.
• Cloud ARR grew 23% YoY to $98M (39% of total ARR), and the newly integrated API security offering is gaining rapid traction with double‑digit customer wins and multiple production projects.
• DefensePro X (on‑prem DDoS) had an “outstanding quarter” with large refresh and expansion deals at major SaaS, e‑commerce, and healthcare customers, reinforcing the hybrid cloud strategy and accelerating subscription adoption.
• Profitability was pressured by a −$2.6M FX hit (stronger Israeli shekel) and memory component cost increases; the company raised affected hardware prices ~5–8% and expects memory cost pressure to persist near term.
• Regionally mixed performance: Americas revenue jumped 40% YoY to $38.4M (~50% of revenue) while EMEA declined 11% and APAC was flat; Q2 guidance is $81–82M revenue and non‑GAAP EPS $0.28–0.29.

Radware Trading Down 3.1%

RDWR traded down $0.88 during trading on Friday, hitting $27.48. The stock had a trading volume of 471,618 shares, compared to its average volume of 207,766. The firm has a market cap of $1.16 billion, a PE ratio of 63.91 and a beta of 0.81. Radware has a 12 month low of $21.42 and a 12 month high of $31.57. The company has a 50 day simple moving average of $25.67 and a 200-day simple moving average of $24.77.

Institutional Trading of Radware

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Pacer Advisors Inc. grew its position in Radware by 80.7% in the 4th quarter. Pacer Advisors Inc. now owns 4,230 shares of the information technology services provider's stock worth $102,000 after purchasing an additional 1,889 shares during the last quarter. XTX Topco Ltd acquired a new position in shares of Radware in the fourth quarter valued at $766,000. Lazard Asset Management LLC raised its stake in shares of Radware by 89.0% in the fourth quarter. Lazard Asset Management LLC now owns 83,556 shares of the information technology services provider's stock valued at $2,013,000 after purchasing an additional 39,338 shares in the last quarter. Defiance ETFs LLC acquired a new position in shares of Radware in the fourth quarter valued at $9,152,000. Finally, Amundi acquired a new position in shares of Radware in the fourth quarter valued at $378,000. 73.12% of the stock is currently owned by institutional investors and hedge funds.

Radware News Summary

Here are the key news stories impacting Radware this week:

• Positive Sentiment: Radware reported Q1 2026 EPS of $0.30, topping estimates, while revenue rose 11% year over year to $79.8 million and also beat expectations. Radware Reports First Quarter 2026 Financial Results
• Positive Sentiment: The company raised confidence in near-term growth by guiding Q2 2026 EPS to $0.280-$0.290 and revenue to $81.0 million-$82.0 million, both above Wall Street expectations.
• Positive Sentiment: Cloud ARR increased 23% year over year to $98 million, and operating cash flow remained strong at $19.9 million, supporting the bullish reaction.
• Neutral Sentiment: Needham & Company reaffirmed its “hold” rating on RDWR, which is not a major catalyst by itself. Benzinga report on Needham rating reaffirmation
• Neutral Sentiment: Investors are also digesting the Q1 earnings call transcript, but the main takeaway remains the earnings beat and stronger guidance. Radware Ltd. (RDWR) Q1 2026 Earnings Call Transcript

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on RDWR. Weiss Ratings restated a "sell (d+)" rating on shares of Radware in a research note on Friday, March 27th. Wall Street Zen upgraded shares of Radware from a "hold" rating to a "buy" rating in a research note on Saturday, April 4th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of Radware in a report on Thursday. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $30.00.

Radware declared that its Board of Directors has approved a stock repurchase program on Friday, February 13th that permits the company to repurchase $80.00 million in outstanding shares. This repurchase authorization permits the information technology services provider to buy up to 7.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

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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