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Radware
(NASDAQ:RDWR)
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Rating:73Outperform
Price Target:
$31.00
▲(20.34% Upside)
Action:Reiterated
Date:06/01/26
The score is driven primarily by solid financial stability and improving profitability (high margins and low leverage), supported by strong technical uptrend and positive operating momentum discussed on the earnings call (cloud ARR and Americas acceleration). The main constraint is expensive valuation (high P/E) alongside near-term FX/cost headwinds and uneven revenue/FCF consistency.
Positive Factors
Recurring cloud ARR growth
A 23% rise in cloud ARR to $98M and higher ARR share materially shifts Radware toward recurring subscription revenue. That structural mix improves revenue predictability, supports higher lifetime customer value, and creates durable upsell and renewal economics over the next 2–6 months and beyond.
Negative Factors
Inconsistent revenue and FCF volatility
Recent negative FCF growth and uneven top-line trends (decline in 2023, modest recovery in 2024–25) signal timing and working-capital sensitivity. That creates earnings and cash unpredictability, complicating reinvestment planning and reducing confidence in sustainably funding growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring cloud ARR growth
A 23% rise in cloud ARR to $98M and higher ARR share materially shifts Radware toward recurring subscription revenue. That structural mix improves revenue predictability, supports higher lifetime customer value, and creates durable upsell and renewal economics over the next 2–6 months and beyond.
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
$1.36B
Dividend YieldN/A
Average Volume (3M)217.91K
Price to Earnings (P/E)68.2
Beta (1Y)0.78
Revenue Growth9.83%
EPS Growth65.00%
CountryUS
Employees1,137
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.45
Shares Outstanding43,145,970
10 Day Avg. Volume165,352
30 Day Avg. Volume217,915
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 Cap0.80
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit4.34
Enterprise Value/Ebitda25.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.11
Revenue Forecast (FY)$329.11M
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 primarily generates revenue by selling cybersecurity and application delivery solutions through two main models: (1) product revenue from on-premises/appliance-based systems and related components used for functions such as application del...
Radware Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call highlights strong cloud-driven growth (Cloud ARR +23%), significant Americas acceleration (+40% revenue), rapid API security adoption, robust hybrid refresh activity (DefensePro X), solid liquidity (~$434M) and meaningful MSSP/partner momentum. Offsetting these positives are regional softness in EMEA (-11%) and flat APAC, supply-chain/memory cost pressures prompting 5%–8% hardware price increases, FX-related margin headwinds (‑$2.6M) and modest declines in cash flow and EPS versus prior year. On balance, the positives—particularly the accelerating cloud ARR, large Americas growth, product wins and healthy balance sheet—outweigh the lowlights, though management cautions on near-term cost and FX impacts.Positive Updates
Revenue Growth and Quarterly Momentum
Revenue grew 11% year-over-year to $79.8M ($80M disclosed elsewhere), marking the fourth quarter of double-digit growth in the past five quarters and demonstrating sustained top-line momentum.
Negative Updates
EMEA Revenue Decline
EMEA revenue declined 11% year-over-year to $25.1M, representing a regional weakness that contrasts with strong Americas performance.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Quarterly Momentum
Revenue grew 11% year-over-year to $79.8M ($80M disclosed elsewhere), marking the fourth quarter of double-digit growth in the past five quarters and demonstrating sustained top-line momentum.
Read all positive updates
Company Guidance
For Q2 2026 Radware guided revenue of $81–82 million, non‑GAAP operating expenses of $56–57 million, non‑GAAP diluted EPS of $0.28–0.29, and an effective tax rate of 14–15%; management noted the OpEx and EPS outlook reflect current FX rates and called out roughly $2 million of U.S. dollar‑related exchange headwind in Q2 OpEx and that Israeli shekel strength will pressure OpEx/EPS through the year. They reiterated expectations for total ARR growth of 8–9% (with cloud ARR growth in the 20s — cloud ARR was +23% y/y to $98M in Q1), said memory‑related cost pressure will persist near term (and have raised certain hardware list prices ~5–8% effective end of Q2), and expect financial income to gradually decline over the remaining quarters.Radware Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 309.58M | 301.85M | 274.88M | 261.29M | 293.43M | 286.50M |
| Gross Profit | 250.12M | 243.51M | 221.63M | 209.58M | 239.54M | 234.05M |
| EBITDA | 42.28M | 40.99M | 24.74M | -5.31M | 16.61M | 33.03M |
| Net Income | 19.46M | 20.26M | 6.04M | -21.59M | -166.00K | 7.81M |
Balance Sheet | ||||||
| Total Assets | 656.45M | 671.16M | 618.68M | 571.92M | 643.59M | 635.37M |
| Cash, Cash Equivalents and Short-Term Investments | 251.81M | 257.26M | 275.78M | 330.59M | 298.04M | 287.89M |
| Total Debt | 16.37M | 17.02M | 18.27M | 20.70M | 24.15M | 27.45M |
| Total Liabilities | 288.23M | 280.48M | 261.60M | 248.64M | 275.14M | 265.38M |
| Stockholders Equity | 326.82M | 349.36M | 316.27M | 284.09M | 332.16M | 369.99M |
Cash Flow | ||||||
| Free Cash Flow | 36.45M | 41.55M | 66.33M | -8.93M | 23.33M | 66.17M |
| Operating Cash Flow | 46.78M | 50.09M | 71.61M | -3.50M | 32.15M | 71.77M |
| Investing Cash Flow | -6.49M | -30.07M | -39.52M | 92.78M | -56.02M | 7.85M |
| Financing Cash Flow | -43.19M | -13.66M | -3.91M | -64.93M | -22.46M | -41.88M |
Radware Technical Analysis
Positive
25.76
Price Trends
28.83
Positive
27.08
Positive
25.88
Positive
Market Momentum
0.74
Negative
57.62
Neutral
69.04
Neutral
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 25.76 is below the 20-day moving average (MA) of 29.39, below the 50-day MA of 28.83, and below the 200-day MA of 25.88, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 69.04 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.12B | 32.71 | 5.96% | ― | 4.47% | ― | |
75 Outperform | $2.30B | 16.44 | 15.26% | ― | 9.03% | ― | |
73 Outperform | $1.36B | 68.25 | 5.71% | ― | 9.83% | 65.00% | |
64 Neutral | $2.68B | 58.40 | 21.19% | 1.33% | 12.08% | -8.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $6.13B | -19.32 | -21.49% | ― | 21.38% | 27.92% | |
58 Neutral | $746.50M | 34.57 | 16.38% | ― | 1.19% | -25.24% |
* Technology Sector Average
RDWR
Radware
30.82
3.14
11.34%
RAMP
LiveRamp Holdings
37.82
5.46
16.87%
NTCT
Netscout Systems
43.14
21.14
96.09%
ATEN
A10 Networks
36.79
19.09
107.90%
RPD
Rapid7
11.92
-10.61
-47.09%
S
SentinelOne
18.55
0.92
5.22%
Radware Corporate Events
Radware Shareholders Approve All Proposals at 2026 Annual Meeting
May 27, 2026
Radware reported the results of its 2026 Annual General Meeting of Shareholders, held on May 25, 2026, in Tel Aviv. The company said that all three proposals presented to shareholders at the meeting were approved by the requisite shareholder vote,...
Radware Posts Double‑Digit Q1 2026 Revenue Growth on Cloud Security Momentum
May 7, 2026
On May 7, 2026, Radware reported first‑quarter 2026 revenue of $79.8 million, up 11% year over year, driven mainly by its cloud security business and strong adoption of new API protection offerings. Cloud annual recurring revenue reached $98...
Radware Sets May 25, 2026 Date for Annual General Meeting and Key Governance Votes
Apr 20, 2026
Radware announced on April 20, 2026 that it will hold its 2026 Annual General Meeting of Shareholders on May 25, 2026 at its U.S. offices in Mahwah, New Jersey, with April 21, 2026 set as the record date for shareholder participation. The agenda i...
Radware Sets May 7 Release and Call for Q1 2026 Earnings
Apr 6, 2026
Radware announced on April 6, 2026, that it will release its first quarter 2026 financial results on May 7, 2026. The company’s management will host a conference call that same day at 8:30 a.m. EST to review the results and discuss its outlo...
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.