Qualys Raises 2026 Revenue Forecast to $738.9 Million as Quarterly Revenue Grows 11%
Key Facts
Qualys raised its fiscal 2026 revenue forecast to a range of $736.9 million to $738.9 million in results released on November 9 for the quarter ended September 30. The company said the new range represents annual growth of 10% compared with 2025, versus prior guidance of $732 million to $738 million. The update followed an 11% increase in third-quarter revenue to $188 million, from $169.9 million in the same period last year. Adjusted earnings per share exceeded analyst expectations by $0.16, while revenue beat their estimates by $1.37 million, according to Investing.com. However, the stock fell 8.1% in after-hours trading on Monday amid concerns about operating margins.
Net income under generally accepted accounting principles was $57.2 million, or $1.62 per diluted share, compared with $50.3 million and $1.39 per share a year earlier. Adjusted net income rose 11% to $74.8 million, or $2.12 per diluted share, from $67.4 million and $1.86 per share in the third quarter of 2025. The figures show earnings increasing alongside revenue growth, while the stock’s after-hours reaction was negative despite the results beating estimates. Investing.com reported that operating-margin concerns contributed to the decline. The company said adjusted operating margin fell to 46% from 47% a year earlier, while adjusted earnings before interest, taxes, depreciation and amortization margin declined to 48% from 49%.
Management also raised its fiscal 2026 forecast for diluted earnings per share under generally accepted accounting principles to a range of $6.08 to $6.15, from a previous range of $5.76 to $5.90. That places the new annual earnings guidance alongside the higher revenue forecast, while third-quarter margins were below their level a year earlier. On operating cash flow, cash from operations rose 13% to $101.8 million in the third quarter, compared with $90.4 million in the same period of 2025. Cash flow provides another indicator of the period’s performance alongside net income and revenue. For the nearer term, the company expects fourth-quarter revenue of $191 million to $193 million, representing annual growth of 9% to 10%.
Management said growing adoption of the AI-powered risk operations center is being driven by the company’s partner-first approach and reflects accelerating demand for a vendor-neutral platform. The chief executive added that “growing adoption of the AI-powered risk operations center, driven by our partner-led strategy, reflects accelerating demand for a vendor-neutral platform.” Qualys also announced the launch of InstaScan, a vulnerability detection tool that works without a traditional scan and can deliver results within minutes of a security advisory’s publication. The company linked its partner strategy with adoption of the operations center, alongside a tool aimed at reducing the time needed to detect vulnerabilities after disclosure. The market is watching for the company to meet its fourth-quarter revenue range, while calculated billings growth is expected to slow to about 8% from 14% in the third quarter, according to Investing.com’s coverage of the call.
Qualys shares closed at $202.46 in the November 9 session, according to EL7 data, while a decline of 8.1% was recorded in after-hours trading following the results announcement. The move came after the company released its results and new guidance on the same day. The company forecast fourth-quarter revenue growth of 9% to 10% year over year, compared with actual revenue growth of 11% in the third quarter. It also expected calculated billings growth of about 8% in the fourth quarter, after a 14% increase in the previous quarter. The quarterly and annual guidance remain indicators of the trajectory management expects for the rest of the fiscal year.