Radware (NASDAQ:RDWR) Releases Earnings Results

Radware (NASDAQ:RDWR) posted its earnings results on Wednesday. The information technology services provider reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03, FiscalAI reports. Radware had a return on equity of 6.57% and a net margin of 4.26%. The firm had revenue of $84.36 million during the quarter, compared to analysts’ expectations of $83.02 million. During the same quarter in the previous year, the business earned $0.28 earnings per share. The firm’s revenue was up 12.0% compared to the same quarter last year.

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

• Record revenue and recurring-revenue growth: Q3 revenue rose 12% year over year to $84.4 million, while total ARR increased 11% to approximately $266 million and cloud ARR grew 21% to $107 million. Cloud represented 41% of total ARR, up from 37% a year earlier.
• Radware reported strong demand for its integrated cloud security platform, including WAF, API, DDoS and AI-security capabilities. Management cited meaningful API-security wins, initial adoption of Xploit Shield and agentic-AI offerings, and expects the newer AI-environment products to become a more significant growth opportunity in 2027.
• The on-premise business is benefiting from an infrastructure refresh cycle, with less than one-third of the end-of-sale install base upgraded so far. A major global cloud provider also selected Radware to expand and modernize its DDoS protection infrastructure.
• Profitability was pressured by Israeli shekel appreciation, product mix and supply-chain costs: reported operating income was essentially flat year over year at $11.9 million, while net income declined 6% and diluted EPS fell to $0.32 from $0.33. Management expects lower interest rates and a reduced cash balance following share repurchases to remain a modest headwind to financial income.
• Management guided Q4 revenue to $88 million–$90 million and non-GAAP diluted EPS to $0.34–$0.35, while emphasizing continued investment in sales capacity, AI security, API security and global mitigation infrastructure. Radware repurchased approximately $13.7 million of stock in Q3 and ended the quarter with $421.5 million in cash, deposits and marketable securities.

Radware Stock Performance

Shares of RDWR stock traded down $1.59 during mid-day trading on Friday, hitting $35.05. 422,619 shares of the stock traded hands, compared to its average volume of 279,059. Radware has a twelve month low of $21.68 and a twelve month high of $38.50. The company’s 50-day simple moving average is $29.65 and its 200-day simple moving average is $27.67. The firm has a market cap of $1.47 billion, a price-to-earnings ratio of 113.06 and a beta of 0.86.

Insider Buying and Selling

In other news, insider Rivkah Goldriech sold 4,125 shares of the company’s stock in a transaction dated Wednesday, October 28th. The stock was sold at an average price of $36.00, for a total value of $148,500.00. Following the transaction, the insider owned 39,789 shares in the company, valued at $1,432,404. This represents a 9.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Gabriel Malka sold 6,500 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $30.00, for a total value of $195,000.00. Following the completion of the sale, the chief operating officer directly owned 47,922 shares of the company’s stock, valued at approximately $1,437,660. The trade was a 11.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 34,902 shares of company stock worth $1,184,941 over the last quarter. Insiders own 21.58% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on RDWR. Weiss Ratings raised Radware from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, October 13th. Wall Street Zen raised Radware from a “hold” rating to a “buy” rating in a research note on Tuesday, October 13th. Finally, Jefferies Financial Group reissued a “hold” rating and issued a $40.00 target price on shares of Radware in a research note on Wednesday. Three research analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $40.00.

Trending Headlines about Radware

Here are the key news stories impacting Radware this week:

• Positive Sentiment: Fourth-quarter guidance exceeds expectations: Radware forecast adjusted EPS of $0.340–$0.350, above the $0.330 consensus estimate, and revenue of $88.0 million–$90.0 million, compared with expectations of $87.2 million. The upbeat outlook suggests continued demand for the company’s cybersecurity and application-delivery solutions.
• Positive Sentiment: Q3 results beat estimates: Radware reported revenue of $84.36 million, up 12% year over year and above the $83.02 million consensus, while EPS of $0.32 exceeded estimates of $0.29. Cloud annual recurring revenue reportedly increased 21% to $107 million, supporting the company’s growth narrative. Radware Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Investor conference scheduled: Management will participate in Needham Virtual Tech Week on November 18, potentially providing additional commentary on demand, cloud growth and the 2026 outlook. The event does not immediately change Radware’s financial position. Radware to Participate in Upcoming Investor Conferences
• Negative Sentiment: Large insider sales may concern investors: Insider Rivkah Goldriech sold 24,277 shares for about $841,441 on October 27 and another 4,125 shares for $148,500 on October 28. The combined sales totaled approximately $990,000 and substantially reduced her ownership. Although such sales can be routine, they may weigh more heavily while RDWR trades near its 52-week high and at an elevated valuation. Radware Insider Sale
• Negative Sentiment: Profitability remains a concern: While revenue and adjusted EPS improved, reports indicated that GAAP operating income declined. That pressure, combined with a price-to-earnings ratio above 110, leaves the stock vulnerable to profit-taking even after the earnings beat.

Radware Company Profile

Radware Ltd. (NASDAQ: RDWR) is a global provider of cybersecurity and application delivery solutions. The company helps organizations protect digital applications, networks and cloud environments from cyberattacks while maintaining the availability and performance of online services.

Its portfolio includes distributed denial-of-service (DDoS) protection, web application and API security, bot management, cloud security services, and network behavior analysis. Radware also offers application delivery controllers, load balancing and related traffic-management technologies designed to improve the reliability, scalability and performance of business-critical applications.

Founded in 1996, Radware serves enterprises, telecommunications providers, cloud service providers and other organizations worldwide through a combination of on-premises, cloud-based and hybrid solutions.