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

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

Shares of NASDAQ:RDWR traded down $3.81 during trading on Wednesday, hitting $24.39. The company’s stock had a trading volume of 184,488 shares, compared to its average volume of 256,529. The company has a market capitalization of $1.03 billion, a PE ratio of 56.73 and a beta of 0.84. Radware has a fifty-two week low of $21.68 and a fifty-two week high of $32.79. The stock’s 50-day moving average price is $29.44 and its two-hundred day moving average price is $26.91.

Insider Activity at Radware

In other Radware news, COO Gabriel Malka sold 3,111 shares of Radware stock in a transaction that occurred 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 directly owned 61,422 shares in the company, valued at $1,781,238. The trade was a 4.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Rivkah Goldriech sold 1,375 shares of the company’s stock in a transaction that occurred 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 transaction, the insider directly owned 60,741 shares in the company, valued at approximately $1,791,859.50. The trade was a 2.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 5,236 shares of company stock worth $154,782 over the last 90 days. 21.58% of the stock is owned by company insiders.

Institutional Investors Weigh In On Radware

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Simplex Trading LLC raised its stake in shares of Radware by 51.4% in the 4th quarter. Simplex Trading LLC now owns 1,544 shares of the information technology services provider’s stock valued at $37,000 after purchasing an additional 524 shares in the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its stake in Radware by 47.8% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,700 shares of the information technology services provider’s stock worth $41,000 after purchasing an additional 550 shares in the last quarter. Global Retirement Partners LLC bought a new stake in Radware in the fourth quarter valued at about $49,000. Advisors Asset Management Inc. bought a new stake in Radware in the fourth quarter valued at about $85,000. Finally, Pacer Advisors Inc. raised its stake in Radware by 80.7% during the fourth quarter. Pacer Advisors Inc. now owns 4,230 shares of the information technology services provider’s stock valued at $102,000 after buying an additional 1,889 shares in the last quarter. Institutional investors own 73.12% of the company’s stock.

Analyst Ratings Changes

Several brokerages have issued reports on RDWR. Wall Street Zen raised shares of Radware from a “hold” rating to a “buy” rating in a research report on Saturday, April 4th. Needham & Company LLC restated a “hold” rating on shares of Radware in a research note on Thursday, May 7th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Radware presently has an average rating of “Hold” and an average target price of $30.00.

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.