Radware (NASDAQ:RDWR) Announces Earnings Results, Beats Estimates By $0.02 EPS

Radware (NASDAQ:RDWR) announced its quarterly earnings data 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 company had revenue of $82.28 million for the quarter, compared to the consensus estimate of $81.49 million. Radware had a net margin of 6.28% and a return on equity of 7.69%. Radware’s revenue for the quarter was up 10.9% on a year-over-year basis. During the same period in the prior year, the firm 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 Down 12.2%

NASDAQ RDWR opened at $24.78 on Thursday. Radware has a twelve month low of $21.68 and a twelve month high of $32.79. The business has a 50-day moving average price of $29.33 and a 200-day moving average price of $26.90. The firm has a market cap of $1.04 billion, a price-to-earnings ratio of 57.59 and a beta of 0.84.

Insider Activity at Radware

In other Radware news, COO Gabriel Malka sold 3,111 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $29.00, for a total value of $90,219.00. Following the completion of the transaction, the chief operating officer directly owned 61,422 shares in the company, valued at $1,781,238. This represents a 4.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Rivkah Goldriech sold 1,375 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $29.50, for a total transaction of $40,562.50. Following the sale, the insider directly owned 60,741 shares of the company’s stock, valued at approximately $1,791,859.50. This trade represents a 2.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 5,236 shares of company stock worth $154,782 in the last three months. 21.58% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Radware

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

Wall Street Analyst Weigh In

RDWR has been the topic of several analyst reports. Wall Street Zen upgraded shares of Radware from a “hold” rating to a “buy” rating in a research note 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 issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Radware has an average rating of “Hold” and an average target price of $30.00.

Radware News Roundup

Here are the key news stories impacting Radware this week:

• Positive Sentiment: Q2 earnings beat expectations: Radware reported non-GAAP diluted EPS of $0.30, above the $0.28 consensus estimate, while revenue of $82.28 million exceeded expectations of $81.49 million. Revenue increased approximately 11% year over year, and GAAP diluted EPS was $0.09. Radware Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Cloud business momentum remained strong: Cloud annual recurring revenue reached $103 million, up 22% year over year and above the $100 million milestone. Management also highlighted continued momentum in its cloud security platform, supporting the company’s recurring-revenue growth strategy. Radware Q2 2026 Earnings Call Highlights
• Positive Sentiment: Third-quarter outlook was above revenue expectations: Radware guided for revenue of $82.5 million to $83.5 million, compared with the $81.7 million analyst consensus. EPS guidance of $0.28 to $0.29 brackets the consensus estimate of $0.28, indicating expectations for continued profitability. Radware Q2 2026 Earnings Call Transcript
• Positive Sentiment: Cash generation improved the quality of the results: Cash flow from continuing operating activities was $13.0 million during the quarter, providing financial support for continued investment in Radware’s security and cloud offerings.
• Neutral Sentiment: Investor conference planned: Management will participate in the virtual Rosenblatt Technology Summit: The Age of AI on August 18. The event could provide additional visibility into Radware’s artificial-intelligence and cloud-security strategy, but it does not represent a new financial commitment. Radware to Participate in Upcoming Investor Conferences

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.