Qualys (NASDAQ:QLYS) Announces Quarterly Earnings Results

Qualys (NASDAQ:QLYS) announced its earnings results on Monday. The software maker reported $2.12 EPS for the quarter, topping the consensus estimate of $1.96 by $0.16, FiscalAI reports. Qualys had a return on equity of 38.44% and a net margin of 29.59%. The firm had revenue of $188.05 million for the quarter, compared to the consensus estimate of $186.63 million. During the same period in the previous year, the business earned $1.86 EPS. The business’s quarterly revenue was up 10.7% compared to the same quarter last year.

Here are the key takeaways from Qualys’ conference call:

• Qualys reported Q3 revenue growth of 11% to $188 million, with adjusted EBITDA margin of 48% and free cash flow margin of 53.2%. It raised full-year revenue guidance to $736.9–$738.9 million and EPS guidance to $8.07–$8.14.
• Management highlighted growing adoption of its exposure-management and remediation products, including patch deployments up 47% since early April and autonomous deployments increasing. The company also cited a 15% year-over-year increase in customers spending at least $500,000 and early QFlex customers’ average annual bookings rising more than 20%.
• Federal wins helped drive Q3 bookings, including a new seven-figure annual deal and a seven-figure expansion, while channel revenue grew 24%. Management said Q3 calculated current billings grew 14%, though it attributed the outperformance in part to a strong federal quarter.
• Management forecast Q4 calculated current billings growth of about 8% and full-year growth of 11%, and said it does not currently expect a material change in the 105% net dollar expansion rate. It cautioned that customer decisions around new remediation workflows can take time, with no significant improvement in sales cycles or close rates yet.

Qualys Price Performance

Shares of NASDAQ QLYS opened at $179.18 on Wednesday. The stock has a market capitalization of $6.20 billion, a P/E ratio of 29.81 and a beta of 0.54. The firm’s 50 day simple moving average is $190.85 and its two-hundred day simple moving average is $137.28. Qualys has a one year low of $74.51 and a one year high of $235.54.

Insider Transactions at Qualys

In other news, CEO Sumedh S. Thakar sold 3,200 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $170.05, for a total value of $544,160.00. Following the completion of the sale, the chief executive officer directly owned 180,338 shares of the company’s stock, valued at $30,666,476.90. This trade represents a 1.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bruce Posey sold 881 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $189.52, for a total value of $166,967.12. Following the completion of the sale, the insider directly owned 57,807 shares of the company’s stock, valued at approximately $10,955,582.64. This represents a 1.50% decrease in their position. 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. Insiders have sold 11,672 shares of company stock worth $2,192,747 in the last quarter. Company insiders own 0.72% of the company’s stock.

More Qualys News

Here are the key news stories impacting Qualys this week:

• Positive Sentiment: Qualys beat third-quarter expectations, reporting adjusted EPS of $2.12 and revenue of $188.05 million; revenue grew about 11% year over year. The company cited strength in federal demand, channel growth and security-product adoption. Article: Qualys Q3 Earnings Beat on Federal Strength, 2026 Guidance Raised
• Positive Sentiment: The company raised its 2026 outlook: adjusted EPS guidance is $8.07–$8.14, while revenue guidance is $736.9–$738.9 million. Fourth-quarter EPS guidance also came in above consensus, though revenue guidance was only slightly above estimates. Article: Qualys Raises Guidance, Is The Stock Already Overvalued?
• Neutral Sentiment: Analyst views were mixed. UBS, Baird, RBC, Wedbush and Piper Sandler raised price targets while maintaining neutral or equivalent ratings; several targets remained below or near the current share price.
• Negative Sentiment: Despite the beat and raised annual outlook, investors focused on margin concerns and analyst commentary pointing to slower fourth-quarter billings growth, fueling doubts about near-term momentum. Article: Qualys declines as analysts highlight Q4 billings growth slowdown
• Negative Sentiment: JPMorgan cut its price target from $241 to $215 and Jefferies lowered its target from $235 to $215; both maintained neutral/hold ratings. These cuts reinforced caution after the earnings release. Article: Qualys Stock Price Target Lowered at JPMorgan

Analyst Ratings Changes

QLYS has been the subject of a number of analyst reports. Wedbush raised their price objective on Qualys from $175.00 to $185.00 and gave the stock a “neutral” rating in a research report on Tuesday. Wall Street Zen cut Qualys from a “buy” rating to a “hold” rating in a report on Monday, November 2nd. Morgan Stanley increased their target price on shares of Qualys from $130.00 to $140.00 and gave the company an “underweight” rating in a research report on Tuesday. Yorkville Ives initiated coverage on shares of Qualys in a report on Monday, October 5th. They set an “outperform” rating and a $230.00 price target for the company. Finally, Robert W. Baird boosted their price target on shares of Qualys from $160.00 to $210.00 and gave the stock a “neutral” rating in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $195.00.

About Qualys

Qualys, Inc. provides cloud-based security and compliance software to help organizations identify and manage cybersecurity risks. Its platform brings together information about an organization’s IT assets and security posture to support vulnerability management, threat detection, and compliance activities. Qualys offers products and services for vulnerability assessment and remediation, cloud security, endpoint protection, web application security, and policy compliance. Its solutions are designed to help customers monitor systems across cloud environments, on-premises infrastructure, and other connected assets.