Radware (NASDAQ:RDWR) Releases Earnings Results, Beats Expectations By $0.03 EPS

Radware (NASDAQ:RDWR) issued its quarterly earnings results on Wednesday. The information technology services provider reported $0.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.29 by $0.03, FiscalAI reports. Radware had a return on equity of 7.47% and a net margin of 5.34%. The firm had revenue of $84.36 million during the quarter, compared to analyst estimates of $83.02 million. During the same period last year, the company earned $0.28 EPS. Radware’s quarterly revenue was up 12.0% compared to the same quarter last year.

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

• Record revenue and recurring-revenue growth: Q3 revenue rose 12% year over year to $84.4 million, while total ARR increased 11% to approximately $266 million and cloud ARR grew 21% to $107 million. Cloud represented 41% of total ARR, up from 37% a year earlier.
• Radware reported strong demand for its integrated cloud security platform, including WAF, API, DDoS and AI-security capabilities. Management cited meaningful API-security wins, initial adoption of Xploit Shield and agentic-AI offerings, and expects the newer AI-environment products to become a more significant growth opportunity in 2027.
• The on-premise business is benefiting from an infrastructure refresh cycle, with less than one-third of the end-of-sale install base upgraded so far. A major global cloud provider also selected Radware to expand and modernize its DDoS protection infrastructure.
• Profitability was pressured by Israeli shekel appreciation, product mix and supply-chain costs: reported operating income was essentially flat year over year at $11.9 million, while net income declined 6% and diluted EPS fell to $0.32 from $0.33. Management expects lower interest rates and a reduced cash balance following share repurchases to remain a modest headwind to financial income.
• Management guided Q4 revenue to $88 million–$90 million and non-GAAP diluted EPS to $0.34–$0.35, while emphasizing continued investment in sales capacity, AI security, API security and global mitigation infrastructure. Radware repurchased approximately $13.7 million of stock in Q3 and ended the quarter with $421.5 million in cash, deposits and marketable securities.

Radware Trading Up 0.6%

Shares of Radware stock traded up $0.21 on Wednesday, hitting $35.71. 453,232 shares of the company traded hands, compared to its average volume of 274,834. The stock’s 50 day moving average price is $29.28 and its 200-day moving average price is $27.55. Radware has a 52 week low of $21.68 and a 52 week high of $38.50. The company has a market cap of $1.50 billion, a PE ratio of 93.97 and a beta of 0.86.

Insider Buying and Selling

In other Radware news, COO Gabriel Malka sold 6,500 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $30.00, for a total value of $195,000.00. Following the completion of the sale, the chief operating officer directly owned 47,922 shares in the company, valued at approximately $1,437,660. This represents a 11.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Guy Avidan purchased 2,000 shares of the business’s stock in a transaction dated Friday, July 31st. The shares were purchased at an average price of $25.21 per share, for a total transaction of $50,420.00. Following the purchase, the chief financial officer owned 95,800 shares of the company’s stock, valued at approximately $2,415,118. This trade represents a 2.13% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 21.58% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of analysts have weighed in on RDWR shares. Weiss Ratings upgraded Radware from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 13th. Wall Street Zen raised shares of Radware from a “hold” rating to a “buy” rating in a research note on Tuesday, October 13th. Two analysts have rated the stock with a Hold rating. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $25.00.

About Radware

Radware Ltd. (NASDAQ: RDWR) is a global provider of cybersecurity and application delivery solutions. The company helps organizations protect digital applications, networks and cloud environments from cyberattacks while maintaining the availability and performance of online services.

Its portfolio includes distributed denial-of-service (DDoS) protection, web application and API security, bot management, cloud security services, and network behavior analysis. Radware also offers application delivery controllers, load balancing and related traffic-management technologies designed to improve the reliability, scalability and performance of business-critical applications.

Founded in 1996, Radware serves enterprises, telecommunications providers, cloud service providers and other organizations worldwide through a combination of on-premises, cloud-based and hybrid solutions.