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Radware
(NASDAQ:RDWR)
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Rating:74Outperform
Price Target:
$42.00
▲(50.81% Upside)
Action:Upgraded
Date:10/29/26
RDWR scores well primarily on improving fundamentals (profitability and strong free-cash-flow recovery) supported by a very strong, low-leverage balance sheet. The latest earnings call reinforced the growth and execution narrative (record revenue, expanding ARR/cloud traction, notable wins), while technicals show a strong trend but also overbought risk. The main drag on the score is valuation, with a very high P/E and no dividend support, increasing sensitivity to any slowdown or margin pressure.
Positive Factors
Recurring Cloud Growth
Rapid cloud ARR growth increases the share of recurring, contract-based revenue and strengthens Radware’s transition toward a scalable security-services model. Continued adoption can improve revenue visibility, deepen customer relationships, and support durable expansion across application, API, and DDoS protection.
Negative Factors
Earnings and Margin Volatility
The return to profitability is encouraging, but the recent history of losses and lower current margins indicates that earnings power is not yet consistently established. Continued volatility could limit management’s ability to plan investment confidently and makes future results more sensitive to mix, costs, and operating execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Cloud Growth
Rapid cloud ARR growth increases the share of recurring, contract-based revenue and strengthens Radware’s transition toward a scalable security-services model. Continued adoption can improve revenue visibility, deepen customer relationships, and support durable expansion across application, API, and DDoS protection.
Read all positive factors
Radware Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down Radware’s sales across regions (Americas, EMEA, APAC), revealing where demand for its DDoS protection, application delivery and cloud security services is strongest. Highlights geographic concentration, currency and regulatory exposure, and where future growth or weakness is most likely, which helps assess market diversification and regional risk.
Breaks down Radware’s sales across regions (Americas, EMEA, APAC), revealing where demand for its DDoS protection, application delivery and cloud security services is strongest. Highlights geographic concentration, currency and regulatory exposure, and where future growth or weakness is most likely, which helps assess market diversification and regional risk.
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The Fly
The FlyRadware (RDWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.56B
Dividend YieldN/A
Average Volume (3M)357.16K
Price to Earnings (P/E)94.6
Beta (1Y)0.93
Revenue Growth9.98%
EPS Growth18.53%
CountryUS
Employees1,228
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.33
Shares Outstanding42,082,490
10 Day Avg. Volume303,132
30 Day Avg. Volume357,160
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)2.96
Price to Sales (P/S)3.42
P/FCF Ratio24.86
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue3.34
Enterprise Value/Gross Profit4.14
Enterprise Value/Ebitda33.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.22
Revenue Forecast (FY)$332.29M
Radware Business Overview & Revenue Model
Company Description
Radware Ltd. and its affiliated companies are dedicated to the development, production, and distribution of advanced cybersecurity and application management tools. These sophisticated solutions cater to applications hosted across global cloud inf...
How the Company Makes Money
Radware makes money primarily by selling cybersecurity and application-delivery solutions through two main revenue streams: (1) subscription and managed services and (2) product (hardware/software) and related support. A significant portion of rev...
Radware Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by record revenue, accelerating growth, double-digit ARR expansion, broad-based regional performance, cloud and AI security adoption, major competitive wins, improved cash flow, and a strong balance sheet. The main challenges were lower reported profitability from Israeli shekel appreciation, a decline in gross margin, lower financial income, a higher tax rate, and competition and timing uncertainty in emerging agentic AI security markets.Positive Updates
Record Revenue and Accelerating Growth
Third-quarter revenue reached a record $84.4 million, up 12% year-over-year. This was the eighth quarter of double-digit growth over the last nine quarters.
Negative Updates
Gross Margin Decline
Gross profit increased 11% year-over-year to $68.7 million, but gross margin declined to 81.4% from 82.4% in the third quarter of 2025. Management attributed the change mainly to foreign exchange headwinds, product mix, and supply chain cost pressure.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Accelerating Growth
Third-quarter revenue reached a record $84.4 million, up 12% year-over-year. This was the eighth quarter of double-digit growth over the last nine quarters.
Read all positive updates
Company Guidance
For the fourth quarter of 2026, Radware expects total revenue to be in the range of $88 million-$90 million, non-GAAP operating expenses to be between $57 million-$58 million, non-GAAP diluted EPS to be between $0.34 and $0.35, and the effective tax rate to be between 14%-15% in the coming quarter; the company is not guiding for next year, only for the coming quarter.Radware Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 326.70M | 301.85M | 274.88M | 261.29M | 293.43M | 286.50M |
| Gross Profit | 263.59M | 243.51M | 221.63M | 209.58M | 239.54M | 234.05M |
| EBITDA | 32.73M | 40.99M | 24.74M | -5.31M | 16.61M | 33.03M |
| Net Income | 13.93M | 20.26M | 6.04M | -21.59M | -166.00K | 7.81M |
Balance Sheet | ||||||
| Total Assets | 654.58M | 671.16M | 618.68M | 571.92M | 643.59M | 635.37M |
| Cash, Cash Equivalents and Short-Term Investments | 264.36M | 257.26M | 275.78M | 330.59M | 298.04M | 287.89M |
| Total Debt | 14.89M | 17.02M | 18.27M | 20.70M | 24.15M | 27.45M |
| Total Liabilities | 298.49M | 280.48M | 261.60M | 248.64M | 275.14M | 265.38M |
| Stockholders Equity | 314.54M | 349.36M | 316.27M | 284.09M | 332.16M | 369.99M |
Cash Flow | ||||||
| Free Cash Flow | 48.61M | 41.55M | 66.33M | -8.93M | 23.33M | 66.17M |
| Operating Cash Flow | 59.16M | 50.09M | 71.61M | -3.50M | 32.15M | 71.77M |
| Investing Cash Flow | 34.23M | -30.07M | -39.52M | 92.78M | -56.02M | 7.85M |
| Financing Cash Flow | -74.66M | -13.66M | -3.91M | -64.93M | -22.46M | -41.88M |
Radware Technical Analysis
Positive
27.85
Price Trends
29.46
Positive
29.20
Positive
27.64
Positive
Market Momentum
1.19
Negative
75.53
Negative
93.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDWR, the sentiment is Positive. The current price of 27.85 is below the 20-day moving average (MA) of 30.49, below the 50-day MA of 29.46, and above the 200-day MA of 27.64, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 75.53 is Negative, neither overbought nor oversold. The STOCH value of 93.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDWR.
Radware Risk Analysis
Radware disclosed 43 risk factors in its most recent earnings report. Radware reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Radware Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.56B | 94.60 | 5.05% | ― | 9.98% | 18.53% | |
72 Outperform | $20.70B | 28.83 | 19.19% | ― | 10.64% | 6.01% | |
72 Outperform | $2.87B | 23.67 | 7.42% | ― | 5.79% | 65.56% | |
67 Neutral | $1.92B | 44.08 | 19.61% | 0.91% | 12.20% | -13.97% | |
66 Neutral | $113.49B | -546.68 | -13.86% | ― | 33.53% | -72.17% | |
64 Neutral | $14.10B | 34.54 | 8.49% | ― | 5.87% | -0.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
RDWR
Radware
37.16
11.17
42.98%
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98.10
25.09
34.37%
FFIV
F5, Inc.
365.53
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41.26%
NTCT
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39.53
13.01
49.06%
ATEN
A10 Networks
26.45
9.15
52.86%
NET
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318.72
91.34
40.17%
Radware Corporate Events
Radware Delivers Record Q3 2026 Revenue as Cloud Security ARR Climbs 21%
Oct 28, 2026
Radware reported its third-quarter 2026 results on October 28, posting record quarterly revenue of $84.4 million, up 12% year over year, with balanced 12% growth across the Americas, EMEA and APAC regions. Cloud annual recurring revenue reached $1...
Radware Sets October 28 Date for Third-Quarter 2026 Earnings Call
Oct 7, 2026
On October 7, 2026, Radware reported to the U.S. Securities and Exchange Commission that it has scheduled the release of its third quarter 2026 financial results for October 28, 2026. Management will host a conference call that same day at 8:30 a....
Radware Posts Record Q2 2026 Revenue as Cloud ARR Surges
Jul 29, 2026
On July 29, 2026, Radware reported consolidated financial results for the quarter ended June 30, 2026, highlighting its position as a leading multi-cloud application security vendor. The company continues to build out its cloud-focused security pl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.