Radware (RWA) AI Stock Analysis

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Radware

(Frankfurt:RWA)

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Positive Factors

Recurring cloud growthStrong ARR expansion, especially in cloud services, increases the recurring portion of Radware’s revenue base and supports greater visibility. Continued migration toward cloud security can deepen customer relationships, improve retention, and provide a durable platform for growth over the next several quarters.

Negative Factors

Margin and earnings pressureAlthough gross profitability remains high, the margin decline and lower reported earnings show that revenue growth is not translating fully into bottom-line expansion. Foreign exchange, product mix, and cost pressure could continue to constrain operating leverage over the next several quarters.

Radware (RWA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.36B
Dividend Yield: ―
Average Volume (3M): 334
Price to Earnings (P/E): 99.1
Beta (1Y): 0.60
Revenue Growth: 5.39%
EPS Growth: -19.87%
Country: Germany
Employees: 1,228
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

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 infras...

Radware Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:-8.28%|Next Earnings Date:Feb 10, 2027

Earnings Call SentimentPositive

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.

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 Risk Analysis

Radware disclosed 43 risk factors in its most recent earnings report. Radware reported the most risks in the "Tech & Innovation" category.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Radware Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:RWA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFIV	76Outperform	$18.03B	25.24	19.19%	―	10.64%	6.01%
NTCT	70Outperform	$2.29B	18.28	7.87%	―	2.73%	44.26%
ATEN	68Neutral	$2.00B	42.90	21.23%	0.84%	14.99%	-4.06%
NET	62Neutral	$108.84B	-463.80	-15.75%	―	35.73%	-126.80%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AKAM	57Neutral	$12.07B	32.34	7.84%	―	6.22%	-22.19%

* Technology Sector Average

Performance Comparison

DE:RWA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:RWA	Radware	28.80	9.40	48.45%
AKAM	Akamai Technologies	86.68	-1.99	-2.24%
FFIV	F5, Inc.	320.01	81.14	33.97%
NTCT	Netscout	32.72	5.72	21.19%
ATEN	A10 Networks	28.74	11.79	69.59%
NET	Cloudflare Inc	315.00	101.46	47.51%

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.

Radware AI Stock Analysis