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

JFrog (NASDAQ:FROG) released its quarterly earnings data on Thursday. The company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03, FiscalAI reports. The company had revenue of $163.77 million for the quarter, compared to the consensus estimate of $155.63 million. JFrog had a negative return on equity of 2.76% and a negative net margin of 7.35%.JFrog’s quarterly revenue was up 28.7% on a year-over-year basis. During the same period last year, the business posted $0.18 EPS. 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 Price Performance

JFrog stock traded up $6.48 during mid-day trading on Friday, reaching $89.52. 4,369,537 shares of the company traded hands, compared to its average volume of 2,188,246. The firm’s fifty day moving average is $85.16 and its two-hundred day moving average is $63.11. The company has a market capitalization of $10.84 billion, a price-to-earnings ratio of -241.94 and a beta of 1.22. JFrog has a fifty-two week low of $34.05 and a fifty-two week high of $99.22.

JFrog News Roundup

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.

Insider Activity

In related news, CTO Yoav Landman sold 45,000 shares of the firm’s stock in a transaction on Friday, July 17th. The stock was sold at an average price of $87.23, for a total value 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 position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Eduard Grabscheid sold 5,654 shares of JFrog stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $84.69, for a total value of $478,837.26. Following the sale, the chief financial officer directly owned 209,658 shares of the company’s stock, valued at approximately $17,755,936.02. This represents a 2.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 938,649 shares of company stock valued at $76,347,827. 11.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On JFrog

A number of large investors have recently bought and sold shares of the company. Whale Rock Capital Management LLC lifted its stake 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 acquiring an additional 2,389,415 shares during the period. Wasatch Advisors LP raised its holdings in shares of JFrog by 6.0% during the third quarter. Wasatch Advisors LP now owns 2,710,886 shares of the company’s stock worth $128,306,000 after purchasing an additional 153,283 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in JFrog by 30.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,683,153 shares of the company’s stock valued at $167,590,000 after purchasing an additional 633,231 shares during the period. Invesco Ltd. lifted its position in JFrog by 6,868.3% during the fourth quarter. Invesco Ltd. now owns 2,104,071 shares of the company’s stock valued at $131,420,000 after purchasing an additional 2,073,876 shares during the period. Finally, Bank of America Corp DE boosted its holdings in JFrog by 11.8% in the third quarter. Bank of America Corp DE now owns 1,607,498 shares of the company’s stock valued at $76,083,000 after purchasing an additional 170,146 shares during the last quarter. Hedge funds and other institutional investors own 85.02% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on FROG shares. KeyCorp upped their price objective on JFrog from $89.00 to $114.00 and gave the stock an “overweight” rating in a research note on Friday. Stifel Nicolaus boosted their target price on shares of JFrog from $75.00 to $85.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. BTIG Research increased their price target on shares of JFrog from $100.00 to $115.00 and gave the company a “buy” rating in a research report on Friday. Needham & Company LLC raised their price target on shares of JFrog from $80.00 to $115.00 and gave the company a “buy” rating in a report on Friday. Finally, DA Davidson set a $115.00 price objective on shares of JFrog in a research report on Friday. Twenty-one equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, JFrog currently has a consensus rating of “Moderate Buy” and an average 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.