JFrog (NASDAQ:FROG) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

JFrog (NASDAQ:FROG) issued its quarterly earnings data on Thursday. The company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.03, FiscalAI reports. JFrog had a negative net margin of 7.35% and a negative return on equity of 2.76%. The business had revenue of $163.77 million during the quarter, compared to analyst estimates of $155.63 million. During the same quarter last year, the business earned $0.18 EPS. The firm’s quarterly revenue was up 28.7% on a year-over-year basis. JFrog updated its Q3 2026 guidance to 0.220-0.240 EPS and its FY 2026 guidance to 0.960-1.000 EPS.

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

• Q2 results exceeded guidance across all key metrics: Revenue rose 29% year over year to $163.8 million, while record free cash flow reached $53.8 million, or a 33% margin.
• Cloud growth remained the primary growth engine. Cloud revenue increased 53% to $87.5 million and represented 53% of total revenue, supported by strong usage, AI-driven software artifact volumes, and increased security adoption.
• Enterprise expansion and security demand strengthened. Customers spending over $1 million annually grew 59% to 97, net dollar retention reached 121%, and 80% of new customers entering the million-dollar cohort added security products.
• Management raised its full-year outlook: 2026 revenue guidance increased to $648 million-$652 million, baseline cloud growth was raised to 41%-43%, and the net dollar retention floor was lifted to 120%.
• Management discussed a self-hosted Artifactory vulnerability identified by an OpenAI model; JFrog said its SaaS environment was not breached, rapidly issued a patch for self-hosted customers, and characterized the incident as reinforcing demand for cloud and security offerings, though it highlights ongoing software supply-chain risk.

JFrog Stock Up 7.8%

JFrog stock traded up $6.48 during mid-day trading on Friday, hitting $89.52. 4,369,537 shares of the stock were exchanged, compared to its average volume of 2,188,246. The stock has a market capitalization of $10.84 billion, a price-to-earnings ratio of -241.94 and a beta of 1.22. JFrog has a 12 month low of $34.05 and a 12 month high of $99.22. The firm’s fifty day simple moving average is $85.16 and its two-hundred day simple moving average is $63.11.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Cantor Fitzgerald upped their price target on shares of JFrog from $80.00 to $100.00 and gave the company an “overweight” rating in a research report on Monday, August 3rd. Oppenheimer lifted their price target on shares of JFrog from $105.00 to $115.00 and gave the stock an “outperform” rating in a report on Friday. Raymond James Financial set a $120.00 price objective on shares of JFrog in a research note on Friday. Benchmark increased their price objective on JFrog from $100.00 to $120.00 and gave the company a “buy” rating in a report on Friday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of JFrog in a research report on Friday, July 17th. Twenty-one analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $105.81.

Insider Buying and Selling

In related news, CRO Tali Notman sold 22,015 shares of the business’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $83.95, for a total value of $1,848,159.25. Following the transaction, the executive owned 706,629 shares in the company, valued at $59,321,504.55. The trade was a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ben Haim Shlomi sold 15,000 shares of the company’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $94.37, for a total transaction of $1,415,550.00. Following the sale, the chief executive officer directly owned 4,577,237 shares in the company, valued at $431,953,855.69. This trade represents a 0.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 938,649 shares of company stock worth $76,347,827. Corporate insiders own 11.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Invesco Ltd. grew its stake in JFrog by 6,868.3% during the fourth quarter. Invesco Ltd. now owns 2,104,071 shares of the company’s stock worth $131,420,000 after purchasing an additional 2,073,876 shares during the period. State of Tennessee Department of Treasury bought a new stake in JFrog in the fourth quarter worth approximately $246,000. Empowered Funds LLC acquired a new position in JFrog in the fourth quarter valued at approximately $503,000. Verdad Advisers LP acquired a new position in JFrog in the fourth quarter valued at approximately $421,000. Finally, Numerai GP LLC boosted its holdings in shares of JFrog by 73.8% during the 4th quarter. Numerai GP LLC now owns 23,916 shares of the company’s stock worth $1,494,000 after buying an additional 10,155 shares in the last quarter. 85.02% of the stock is owned by institutional investors and hedge funds.

JFrog News Roundup

Here are the key news stories impacting JFrog this week:

• Positive Sentiment: Q2 results beat expectations. JFrog reported adjusted earnings of $0.27 per share versus the $0.24 consensus estimate, while revenue rose 28.7% year over year to $163.8 million, above both analyst expectations and the company’s prior guidance. JFrog Q2 Earnings Beat Estimates on Cloud and Security Growth
• Positive Sentiment: Cloud and security momentum strengthened. Cloud revenue jumped 53% to approximately $87.5 million, representing 53% of total revenue. JFrog also reported 97 customers with more than $1 million in annual recurring revenue and 121% net dollar retention, supporting the company’s expansion and recurring-revenue outlook. JFrog stock jumps as Q2 results top guidance and full-year outlook moves higher
• Positive Sentiment: JFrog raised its outlook. Fiscal 2026 revenue guidance increased to $648 million-$652 million from $628 million-$632 million, while adjusted EPS guidance rose to $0.96-$1.00. Third-quarter guidance of $164 million-$166 million in revenue and $0.22-$0.24 in EPS also exceeds consensus estimates. JFrog forecasts 2026 revenue amid cloud growth outlook
• Positive Sentiment: Analysts raised targets following the report. Benchmark raised its target to $120 and JPMorgan, Oppenheimer, and BTIG lifted theirs to $115. Truist increased its target to $110, while Piper Sandler raised its target to $90 but retained a neutral rating. Analyst price-target updates
• Neutral Sentiment: Software stocks broadly moved higher as solid earnings reduced concerns about artificial-intelligence disruption, providing a favorable sector backdrop for FROG. Stocks that explain today’s market
• Negative Sentiment: Recent insider-trading data shows company insiders recorded numerous open-market sales and no purchases over the past six months. This may temper enthusiasm, although the selling can also reflect scheduled transactions or equity compensation.

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.