Qualys (NASDAQ:QLYS) Releases Earnings Results, Beats Estimates By $0.16 EPS

Qualys (NASDAQ:QLYS) posted its quarterly earnings data on Monday. The software maker reported $2.12 EPS for the quarter, topping analysts’ consensus estimates of $1.96 by $0.16, FiscalAI reports. The company had revenue of $188.05 million during the quarter, compared to the consensus estimate of $186.63 million. Qualys had a net margin of 29.38% and a return on equity of 37.52%. The company’s quarterly revenue was up 10.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.86 EPS.

Here are the key takeaways from Qualys’ conference call:

• Qualys reported Q3 revenue growth of 11% to $188 million, with adjusted EBITDA margin of 48% and free cash flow margin of 53.2%. It raised full-year revenue guidance to $736.9–$738.9 million and EPS guidance to $8.07–$8.14.
• Management highlighted growing adoption of its exposure-management and remediation products, including patch deployments up 47% since early April and autonomous deployments increasing. The company also cited a 15% year-over-year increase in customers spending at least $500,000 and early QFlex customers’ average annual bookings rising more than 20%.
• Federal wins helped drive Q3 bookings, including a new seven-figure annual deal and a seven-figure expansion, while channel revenue grew 24%. Management said Q3 calculated current billings grew 14%, though it attributed the outperformance in part to a strong federal quarter.
• Management forecast Q4 calculated current billings growth of about 8% and full-year growth of 11%, and said it does not currently expect a material change in the 105% net dollar expansion rate. It cautioned that customer decisions around new remediation workflows can take time, with no significant improvement in sales cycles or close rates yet.

Qualys Stock Performance

Shares of QLYS stock opened at $202.46 on Tuesday. The firm’s 50-day moving average is $191.07 and its 200-day moving average is $137.06. The stock has a market cap of $7.01 billion, a price-to-earnings ratio of 35.03 and a beta of 0.54. Qualys has a 52-week low of $74.51 and a 52-week high of $235.54.

More Qualys News

Here are the key news stories impacting Qualys this week:

• Positive Sentiment: Q3 revenue rose 10.7% year over year to $188.05 million, ahead of estimates, while adjusted EPS of $2.12 beat the $1.96 consensus. Qualys also raised its 2026 revenue outlook to $736.9–$738.9 million and adjusted EPS outlook to $8.07–$8.14. Article: Qualys Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Qualys expanded its global mROC alliance with partners covering mobile, operational technology/IoT, and identity security. The broader ecosystem could strengthen its risk-management offerings, though the impact is likely longer term. Article: Qualys Expands Global mROC Alliance
• Negative Sentiment: Despite the earnings beat and raised guidance, shares declined after the company’s revenue outlook failed to satisfy investor expectations. Qualys forecast fourth-quarter revenue of $191–$193 million, implying 9%–10% growth; the market reaction suggests investors wanted a stronger growth outlook. Article: Qualys Earnings Beat. Cybersecurity Stock Falls On Revenue Outlook.

Analysts Set New Price Targets

QLYS has been the topic of several analyst reports. Weiss Ratings upgraded Qualys from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Piper Sandler increased their price target on Qualys from $100.00 to $175.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Robert W. Baird set a $160.00 price target on Qualys in a research note on Wednesday, August 5th. Morgan Stanley set a $200.00 price target on Qualys in a research report on Tuesday, October 13th. Finally, JPMorgan Chase & Co. boosted their price target on Qualys from $139.00 to $150.00 and gave the stock a “neutral” rating in a research report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Qualys presently has an average rating of “Hold” and a consensus price target of $185.87.

Insider Activity at Qualys

In related news, CFO Joo Mi Kim sold 2,659 shares of Qualys stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $209.66, for a total transaction of $557,485.94. Following the completion of the transaction, the chief financial officer owned 68,208 shares in the company, valued at approximately $14,300,489.28. This trade represents a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sumedh Thakar sold 3,200 shares of the business’s stock in a transaction that occurred on Wednesday, October 14th. The stock was sold at an average price of $190.36, for a total value of $609,152.00. Following the transaction, the chief executive officer directly owned 177,138 shares in the company, valued at approximately $33,719,989.68. This trade represents a 1.77% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 11,672 shares of company stock worth $2,192,747. Insiders own 0.72% of the company’s stock.

About Qualys

Qualys, Inc provides cloud-based security and compliance software to help organizations identify and manage cybersecurity risks. Its platform brings together information about an organization’s IT assets and security posture to support vulnerability management, threat detection, and compliance activities.

Qualys offers products and services for vulnerability assessment and remediation, cloud security, endpoint protection, web application security, and policy compliance. Its solutions are designed to help customers monitor systems across cloud environments, on-premises infrastructure, and other connected assets.

Founded in 1999, Qualys is headquartered in Foster City, California, and serves customers around the world.