Radware (RDWR) Earnings Date & Reports

Key Takeaways

• Radware reported record third-quarter 2026 revenue of $84.4 million, up 12% year over year and an eighth quarter of double-digit growth in the last nine.
• Cloud ARR (annual recurring revenue) reached roughly $107 million, up 21% year over year and now representing 41% of total ARR of approximately $266 million.
• Non-GAAP diluted EPS (earnings per share) from continuing operations came in at $0.32, with foreign-exchange headwinds from the Israeli shekel weighing on reported profitability.
• Management guided fourth-quarter 2026 revenue to $88 million–$90 million and non-GAAP diluted EPS to $0.34–$0.35.
• All three geographic regions delivered double-digit year-over-year growth, led by the Americas at $39.6 million in revenue.
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Earnings Context and Why It Matters

Radware, a global leader in application security and delivery for multi-cloud environments, has leaned increasingly on its cloud security platform as its primary growth engine. This quarter's report matters because it shows whether the company can sustain accelerating revenue growth while managing two persistent headwinds: supply-chain cost pressure on hardware components and the strengthening of the Israeli shekel, which reduces the U.S.-dollar value of its Israeli-based operating expenses. With cloud ARR expanding more than 20% and steadily gaining share of the total recurring base, the results offer investors a read on the durability of the subscription-led transition that management has prioritized.

Reported Results

Radware delivered record third-quarter revenue of $84.4 million, a 12% increase year over year. Total ARR grew 11% to approximately $266 million, while cloud ARR climbed 21% to roughly $107 million, reaching 41% of total ARR versus 37% a year earlier. Regionally, the Americas rose 12% to $39.6 million, EMEA (Europe, the Middle East, and Africa) rose 12% to $25.6 million, and APAC (Asia-Pacific) rose 12% to $19.2 million.

On profitability, gross margin was 81.4%, down from 82.4% a year ago, reflecting foreign-exchange effects, product mix, and supply-chain costs. Non-GAAP diluted EPS from continuing operations was $0.32, compared with $0.33 in the prior-year period. The company noted that excluding a $4.6 million unfavorable currency impact, non-GAAP net income and diluted EPS would have been $17.8 million and $0.41, respectively, representing year-over-year growth of 20% and 24%. On a GAAP (Generally Accepted Accounting Principles) basis, total diluted EPS was $0.06, reflecting discontinued operations from the SkyHawk business. The company repurchased approximately $13.7 million of shares during the quarter and ended with $421.5 million in cash, equivalents, bank deposits, and marketable securities.

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Market Reaction and Investor Sentiment

Shares of Radware moved higher following the release, with the stock trading up in the low single digits intraday on October 28, 2026. Investors appeared to respond positively to the record revenue, the acceleration in growth, and the cloud ARR momentum, even as the Israeli shekel's appreciation compressed reported profit margins. The fourth-quarter revenue guidance of $88 million–$90 million, which implies continued sequential growth, was also a focal point. Sentiment remained anchored on the company's expanding subscription base and its early traction in AI security, which management framed as a longer-term catalyst.

Forward Outlook and Key Factors to Monitor

Looking ahead, management guided fourth-quarter 2026 revenue to a range of $88 million–$90 million, with non-GAAP diluted EPS expected between $0.34 and $0.35. Investors will be watching whether the cloud ARR growth rate, which has held above 20%, can continue as the recurring base scales.

Currency remains a key swing factor. Because a meaningful portion of Radware's operating costs are denominated in Israeli shekels, further appreciation of the currency against the U.S. dollar could continue to weigh on reported operating income and EPS. Management has also flagged that lower interest rates and reduced cash balances from buybacks are likely to remain a modest headwind to financial income through year-end.

On the growth side, several catalysts are worth monitoring. The company continues to expand its AI security portfolio, including Xploit Shield and agentic AI protections, which management views as scaling more meaningfully in 2027. API (application programming interface) security and the DefensePro X hardware refresh cycle also remain near-term demand drivers, with less than one-third of the end-of-sale install base refreshed to date. Investors should also track gross margin, where memory component costs and product mix have created pressure that the company is addressing through pricing and procurement discipline.

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