Radware Q4 Earnings Exceed Expectations with Strong Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy RDWR?
Source: seekingalpha
- Strong Earnings Performance: Radware reported a Q4 non-GAAP EPS of $0.32, beating expectations by $0.02, which reflects the company's ongoing improvement in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved Q4 revenue of $80.2 million, a 9.9% year-over-year increase, surpassing market expectations by $1.56 million, indicating robust demand that drives overall business growth.
- Cloud Business Expansion: Cloud ARR reached $95.2 million, up 23% year-over-year, showcasing Radware's increasing competitiveness in the cloud security sector to meet rising market demands.
- Steady Total ARR Increase: Radware's total ARR hit $251 million, an 11% year-over-year growth, demonstrating strong performance in long-term customer relationships and revenue stability, further solidifying its market position.
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Analyst Views on RDWR
Wall Street analysts forecast RDWR stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 26.390
Low
25.00
Averages
30.00
High
35.00
Current: 26.390
Low
25.00
Averages
30.00
High
35.00
About RDWR
Radware Ltd. is a provider of cyber security and application delivery solutions. The Company's solutions incorporate Distributed Denial of Service protection, Web application firewall (WAF) and Application Delivery Controllers (ADC) technologies to enable its customers to provide cyber-attack mitigation solutions for a range of applications. The Company's products and activities are focused on protecting against cyber-attacks and ensuring optimal application service level for enterprises' and carriers' data centers. Its solutions include application and network security, and application delivery. Its application and network Security products include DefensePro Attack Mitigation Device, AppWall Web Application Firewall, DefenseFlow Cyber Command and Control application, and DefensePipe Cloud Scrubbing Service. Its application delivery products include Alteon NG, LinkProof NG and FastView. Its management solutions include APSolute Vision, application performance monitoring and vDirect.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Buyback Plan Initiated: Radware's board has authorized a new share repurchase plan of up to $80 million, which is expected to enhance investor confidence and improve earnings per share.
- Repurchase Deadline Set: The buyback plan will expire on March 15, 2027, indicating the company's confidence in future stock performance while providing liquidity options for shareholders.
- Positive Market Reaction: Following the announcement, Radware's stock price rose 2.9% in premarket trading to $27.18, reflecting the market's positive response to the company's buyback initiative.
- Cloud Security Capacity Boost: Radware also announced an increase in its cloud security capacity to 30 Tbps to combat DDoS attacks, further solidifying its market position in the cybersecurity sector.
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- Buyback Initiative Launched: Radware's board has approved a stock buyback plan of up to $80 million, signaling the company's financial confidence amid the competitive cybersecurity and cloud infrastructure markets.
- Diverse Repurchase Methods: The plan allows for share repurchases through various methods, including open-market purchases and privately negotiated transactions, enabling the company to adapt flexibly to market conditions and optimize its capital structure.
- Positive Market Reaction: Following the announcement, Radware's stock traded over 2% higher in Friday's premarket, reflecting investor optimism regarding the company's future prospects.
- Strategic Implications: This buyback plan not only boosts investor confidence but may also enhance earnings per share by reducing the number of shares outstanding, thereby laying a foundation for the company's long-term growth.
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- Buyback Plan Authorization: Radware Ltd.'s board has approved a share repurchase plan of up to $80 million, aimed at enhancing shareholder value and boosting market confidence, with the plan set to expire on March 15, 2027.
- Flexibility and Management Discretion: The plan does not obligate the company to repurchase any specific number of shares and may be suspended or terminated at management's discretion, providing a flexible capital management strategy.
- Positive Market Reaction: In pre-market trading, Radware's stock rose by 2.99% to $27.18, indicating a positive investor response to the buyback plan, which may further drive the stock price upward.
- Strategic Implications: By implementing the share buyback, Radware can not only improve earnings per share but also demonstrate financial health amid market volatility, thereby enhancing investor confidence in the company's future growth.
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- Repurchase Plan Initiation: Radware's board has approved the 2026 Plan, authorizing the repurchase of up to $80 million in ordinary shares, set to expire on March 15, 2027, reflecting the company's confidence in its stock value.
- Flexible Repurchase Strategy: The plan allows management to choose repurchase methods based on market conditions, share price, and trading volume, including open market transactions and privately negotiated deals, aimed at optimizing capital structure and enhancing shareholder returns.
- Compliance Assurance: All repurchase activities will adhere to U.S. securities laws and Israeli regulations, including Rule 10b-18 of the Exchange Act, ensuring the legality and transparency of the repurchase process while mitigating legal risks.
- Market Reaction Expectations: By implementing this repurchase plan, Radware not only aims to boost investor confidence but may also enhance earnings per share in the future, further solidifying its market position in the cybersecurity sector.
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- Strong Earnings Performance: Radware reported a Q4 non-GAAP EPS of $0.32, beating expectations by $0.02, which reflects the company's ongoing improvement in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved Q4 revenue of $80.2 million, a 9.9% year-over-year increase, surpassing market expectations by $1.56 million, indicating robust demand that drives overall business growth.
- Cloud Business Expansion: Cloud ARR reached $95.2 million, up 23% year-over-year, showcasing Radware's increasing competitiveness in the cloud security sector to meet rising market demands.
- Steady Total ARR Increase: Radware's total ARR hit $251 million, an 11% year-over-year growth, demonstrating strong performance in long-term customer relationships and revenue stability, further solidifying its market position.
See More
- Earnings Announcement: Radware is set to release its Q4 earnings on February 11 before market open, with a consensus EPS estimate of $0.30, reflecting an 11.1% year-over-year increase, which may bolster investor confidence in the company's profitability.
- Revenue Growth Expectations: Analysts project Q4 revenue to reach $78.64 million, up 7.7% year-over-year, indicating strong demand in the cloud security sector, potentially laying the groundwork for future business expansion.
- Consistent Outperformance: Over the past two years, Radware has consistently beaten both EPS and revenue estimates 100% of the time, which not only enhances market confidence in its financial stability but may also attract more institutional investors.
- Enhanced Cloud Security Capacity: Radware has recently boosted its cloud security capacity to 30 Tbps to combat DDoS attacks, a move that not only strengthens its product competitiveness but could also help the company capture a larger share in the rapidly growing cybersecurity market.
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