Radware (NASDAQ:RDWR) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Radware (NASDAQ:RDWR) issued its quarterly earnings data on Wednesday. The information technology services provider reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.28 by $0.02, FiscalAI reports. Radware had a net margin of 6.28% and a return on equity of 7.69%. The business had revenue of $82.28 million during the quarter, compared to analysts’ expectations of $81.49 million. During the same period last year, the company posted $0.28 EPS. The company’s revenue was up 10.9% on a year-over-year basis. 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 Price Performance

RDWR traded down $3.65 during trading on Wednesday, hitting $24.57. The company’s stock had a trading volume of 196,342 shares, compared to its average volume of 256,634. The firm’s 50 day moving average price is $29.44 and its 200-day moving average price is $26.91. The stock has a market cap of $1.03 billion, a PE ratio of 57.12 and a beta of 0.84. Radware has a twelve month low of $21.68 and a twelve month high of $32.79.

Analyst Upgrades and Downgrades

RDWR has been the topic of a number of recent research reports. Needham & Company LLC reaffirmed a “hold” rating on shares of Radware in a research note on Thursday, May 7th. Wall Street Zen raised 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 assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $30.00.

Insiders Place Their Bets

In other news, COO Gabriel Malka sold 3,111 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $29.00, for a total transaction of $90,219.00. Following the sale, the chief operating officer owned 61,422 shares in the company, valued at $1,781,238. This trade represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Rivkah Goldriech sold 1,375 shares of Radware stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $29.50, for a total value of $40,562.50. Following the completion of the sale, the insider directly owned 60,741 shares of the company’s stock, valued at approximately $1,791,859.50. This represents a 2.21% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 5,236 shares of company stock worth $154,782. Corporate insiders own 21.58% of the company’s stock.

Institutional Trading of Radware

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Amundi purchased a new position in shares of Radware during the 4th quarter worth about $378,000. Ameriprise Financial Inc. purchased a new stake in Radware in the third quarter valued at approximately $374,000. Squarepoint Ops LLC grew its holdings in Radware by 4.5% in the third quarter. Squarepoint Ops LLC now owns 12,308 shares of the information technology services provider’s stock valued at $326,000 after purchasing an additional 527 shares during the period. Aquatic Capital Management LLC acquired a new position in Radware during the third quarter worth approximately $290,000. Finally, Walleye Capital LLC acquired a new position in Radware during the fourth quarter worth approximately $276,000. Hedge funds and other institutional investors own 73.12% of the company’s stock.

Radware Company Profile

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.