Radware (NASDAQ:RDWR) Posts Earnings Results, Beats Estimates By $0.03 EPS

Radware (NASDAQ:RDWR) released its quarterly earnings data on Wednesday. The information technology services provider reported $0.32 EPS for the quarter, beating the consensus estimate of $0.29 by $0.03, FiscalAI reports. Radware had a net margin of 5.34% and a return on equity of 7.47%. The business had revenue of $84.36 million during the quarter, compared to the consensus estimate of $83.02 million. During the same quarter in the prior year, the firm earned $0.28 EPS. The business’s revenue was up 12.0% on a year-over-year basis.

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 Stock Performance

RDWR stock traded down $0.34 during trading on Thursday, reaching $36.82. The company had a trading volume of 161,104 shares, compared to its average volume of 276,839. The firm has a 50-day simple moving average of $29.46 and a 200-day simple moving average of $27.61. The company has a market cap of $1.55 billion, a price-to-earnings ratio of 96.90 and a beta of 0.86. Radware has a twelve month low of $21.68 and a twelve month high of $38.50.

Insider Buying and Selling at Radware

In related news, insider Rivkah Goldriech sold 24,277 shares of the company’s stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $34.66, for a total value of $841,440.82. Following the transaction, the insider directly owned 35,714 shares of the company’s stock, valued at $1,237,847.24. This represents a 40.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Gabriel Malka sold 6,500 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The shares were 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 owned 47,922 shares in the company, valued at approximately $1,437,660. This represents a 11.94% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 34,902 shares of company stock worth $1,184,941. 21.58% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of research firms recently issued reports on RDWR. Weiss Ratings upgraded Radware from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, October 13th. Jefferies Financial Group restated a “hold” rating and set a $40.00 price objective on shares of Radware in a research note on Wednesday. Finally, Wall Street Zen raised shares of Radware from a “hold” rating to a “buy” rating in a research report on Tuesday, October 13th. Three analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, Radware has a consensus rating of “Hold” and a consensus price target of $40.00.

Radware News Roundup

Here are the key news stories impacting Radware this week:

• Positive Sentiment: Radware reported record third-quarter revenue of $84.4 million, up 12% year over year, exceeding analysts’ $83.0 million estimate. Non-GAAP diluted EPS was $0.32 versus expectations of $0.29, while GAAP EPS was $0.11. Radware Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Cloud annual recurring revenue rose 21% year over year to $107 million, supporting the company’s transition toward recurring cloud-based security and application-delivery revenue. Radware also generated $15.5 million in operating cash flow from continuing operations.
• Positive Sentiment: Radware announced a seven-year DDoS protection agreement with an existing major global cloud-services customer. The long-term contract should improve revenue visibility and reinforce demand for Radware’s cloud security offerings. Radware Signs 7-Year DDoS Protection Deal With Existing Client
• Neutral Sentiment: Management will participate in Needham’s Virtual Tech Week on November 18. The event could provide additional business or financial updates, but no new operating information was announced.
• Negative Sentiment: Insider Rivkah Goldriech sold 24,277 shares for approximately $841,441 on October 27 and another 4,125 shares for $148,500 on October 28. The sales materially reduced her holdings and may be weighing on sentiment, particularly after RDWR’s sharp recent advance toward its 52-week high. SEC Insider Transaction Filing
• Negative Sentiment: Although earnings beat estimates, Radware trades at a relatively elevated valuation, with a reported price-to-earnings ratio near 96. Investors may be taking profits or demanding stronger forward guidance after the earnings release.

Radware Company Profile

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.