JFrog (NASDAQ:FROG) reported third-quarter 2026 revenue of $179.2 million, up 31% from a year earlier, as cloud consumption and adoption of its software supply chain security products helped results exceed the company’s guidance.
Cloud revenue grew 60% to $101.5 million and represented 57% of total revenue, compared with 46% a year earlier. Chief Executive Officer and Co-Founder Shlomi Ben Haim said customers were increasing their cloud commitments while adopting more security and governance products as artificial intelligence changed how software is developed.
The company also raised its full-year revenue outlook to $680 million to $682 million, representing 28% year-over-year growth at the midpoint. Chief Financial Officer Ed Grabscheid said the outlook excludes revenue from customer usage above annual minimum commitments and excludes the company’s largest opportunities because of uncertainty over their timing.
Cloud Commitments and Large Customers Grow
JFrog signed a $76 million multiyear software-as-a-service agreement with a telecommunications company during the quarter. Ben Haim said the deal represented 167% growth in cloud data consumption compared with the customer’s previous usage commitment and included an expansion into AI security and governance products.
Grabscheid declined to detail the transaction’s revenue contribution when asked by an analyst. Ben Haim said no single customer accounted for more than 3% of JFrog’s total revenue at the end of the quarter.
JFrog has been working to convert customers’ usage above their contracted minimums into larger annual or multiyear commitments. Grabscheid said some large customers gained greater clarity in the third quarter that their AI workloads would continue to grow, though he did not say the conversion timeline had necessarily shortened.
The number of customers with more than $1 million in annual recurring revenue rose to 112 from 71 a year earlier. Customers exceeding $100,000 in annual recurring revenue increased 21% to 1,357. Trailing four-quarter net dollar retention reached 124%, up from 118% a year earlier and 121% in the preceding quarter.
AI and Security Drive Platform Demand
Ben Haim said AI coding tools and agents are increasing demand for the storage, transfer and security of software binaries. He also pointed to newer AI-related assets, including models, datasets, plugins, skills and MCP servers, that customers can manage alongside other software packages.
JFrog has not disclosed a breakdown of AI-related usage. Asked whether AI repositories were growing faster than traditional software repositories, Ben Haim said the company was tracking the data but was not ready to release the figures.
Security adoption also contributed to customer expansion, executives said. Grabscheid described a healthy purchasing environment for security products and said momentum from the second quarter continued into the third. Ben Haim said JFrog plans to share its 2026 security results at year-end.
Among customer examples, Ben Haim said Ford Motor Company migrated more than a petabyte of artifacts to JFrog’s Artifactory product. He also said Credit Karma had reported zero detected supply chain attacks since implementing JFrog Curation.
Profitability and Outlook
Self-managed revenue rose 6% to $77.7 million in the third quarter. Revenue from Enterprise+ subscriptions grew 42% and accounted for 61% of total revenue, up from 56% a year earlier.
Operating profit was $40.7 million, with an operating margin of 22.7%, compared with 18.7% a year earlier. Free cash flow rose to $66.5 million from $28.8 million. Remaining performance obligations, a measure of contracted future revenue, rose 60% year over year to $812 million; that figure excludes usage above contractual minimum commitments.
For the fourth quarter, JFrog forecast revenue of $183 million to $185 million, non-GAAP operating profit of $36.2 million to $38.2 million and non-GAAP diluted earnings per share of 28 cents to 30 cents.
For the full year, the company expects non-GAAP operating income of $142.5 million to $144.5 million and non-GAAP diluted earnings per share of $1.14 to $1.16. It also raised its baseline cloud growth outlook to 52% to 54% and set a 122% floor for trailing four-quarter net dollar retention in 2026.
About JFrog (NASDAQ:FROG)
JFrog Ltd. is a software company that provides a platform for managing, securing and distributing software packages and releases throughout the application development lifecycle. Its technology is designed to help organizations move software reliably from development through production across cloud, on-premises and hybrid environments.
The company’s products include JFrog Artifactory, a repository for storing and managing software packages and container images; JFrog Xray, which provides security and compliance analysis for software components; and tools for continuous integration, continuous delivery, software distribution and release management.
