JFrog (NASDAQ:FROG) Shares Gap Up Following Earnings Beat

JFrog Ltd. (NASDAQ:FROG) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $83.04, but opened at $96.26. JFrog shares last traded at $88.9360, with a volume of 663,591 shares traded.

The company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.03. The firm had revenue of $163.77 million for the quarter, compared to analysts’ expectations of $155.63 million. JFrog had a negative return on equity of 4.61% and a negative net margin of 10.93%.The company’s revenue for the quarter was up 28.7% compared to the same quarter last year. During the same period last year, the firm earned $0.18 earnings per share. JFrog has set its Q3 2026 guidance at 0.220-0.240 EPS and its FY 2026 guidance at 0.960-1.000 EPS.

JFrog News Roundup

Here are the key news stories impacting JFrog this week:

• Positive Sentiment: Q2 results exceeded expectations: JFrog reported adjusted earnings of $0.27 per share versus the $0.24 consensus estimate. Revenue rose 28.7% year over year to $163.77 million, surpassing expectations of $155.63 million. JFrog Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised full-year outlook: Management lifted fiscal 2026 revenue guidance to $648 million-$652 million from $628 million-$632 million and adjusted EPS guidance to $0.96-$1.00 from $0.93-$0.97. Both ranges are above analyst expectations. Third-quarter guidance of $164 million-$166 million in revenue and $0.22-$0.24 in EPS also exceeded consensus estimates. JFrog Q2 Results and Outlook
• Positive Sentiment: Cloud and customer metrics remained strong: Cloud revenue increased 53% year over year to $87.5 million, representing 53% of total revenue. JFrog also reported 97 customers generating more than $1 million in annual recurring revenue and 121% trailing-four-quarter net dollar retention, supporting expectations for continued expansion.
• Positive Sentiment: Analyst sentiment improved: BTIG Research raised its price target from $100 to $115 and Truist Financial increased its target from $105 to $110; both firms assigned a Buy rating. The new targets imply further upside based on recent trading levels. Benzinga analyst target updates
• Neutral Sentiment: Broader software stocks also advanced as solid earnings reports eased concerns about artificial-intelligence disruption, providing a favorable sector backdrop for FROG. Stocks Explaining Today’s Market
• Negative Sentiment: JFrog continues to report a negative net margin and negative return on equity. In addition, reported insider activity shows substantial selling and no open-market purchases over the past six months, which may temper investor enthusiasm.

Analyst Ratings Changes

FROG has been the topic of a number of analyst reports. Stifel Nicolaus lifted their price target on JFrog from $75.00 to $85.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Morgan Stanley set a $100.00 price objective on JFrog in a research note on Friday. Guggenheim reaffirmed a “buy” rating and issued a $115.00 target price on shares of JFrog in a research note on Friday. Canaccord Genuity Group set a $105.00 price target on shares of JFrog in a report on Friday. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of JFrog in a research report on Friday, July 17th. Twenty-one 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’s stock. According to MarketBeat.com, JFrog currently has a consensus rating of “Moderate Buy” and a consensus target price of $96.90.

Insider Buying and Selling at JFrog

In other news, Director Frederic Simon sold 120,000 shares of the business’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $85.84, for a total transaction of $10,300,800.00. Following the sale, the director owned 3,224,328 shares in the company, valued at approximately $276,776,315.52. The trade was a 3.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ben Haim Shlomi sold 93,072 shares of the business’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $84.60, for a total transaction of $7,873,891.20. Following the sale, the chief executive officer owned 4,658,236 shares in the company, valued at approximately $394,086,765.60. This trade represents a 1.96% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 938,649 shares of company stock valued at $76,347,827. 11.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On JFrog

Several hedge funds have recently bought and sold shares of FROG. Millstone Evans Group LLC grew its holdings in JFrog by 242.6% in the first quarter. Millstone Evans Group LLC now owns 603 shares of the company’s stock worth $28,000 after purchasing an additional 427 shares during the period. Blue Trust Inc. purchased a new position in shares of JFrog during the fourth quarter valued at approximately $30,000. Western Wealth Management LLC bought a new stake in shares of JFrog in the 1st quarter worth approximately $30,000. Bessemer Group Inc. bought a new stake in shares of JFrog in the 1st quarter worth approximately $36,000. Finally, Farther Finance Advisors LLC grew its stake in shares of JFrog by 318.7% in the 4th quarter. Farther Finance Advisors LLC now owns 628 shares of the company’s stock worth $39,000 after buying an additional 478 shares during the last quarter. Institutional investors own 85.02% of the company’s stock.

JFrog Price Performance

The stock has a 50 day simple moving average of $84.96 and a 200-day simple moving average of $62.93. The firm has a market cap of $10.45 billion, a PE ratio of -163.47 and a beta of 1.22.

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.