Abstract

Radware will release its Q1 2026 results on May 07, 2026 Pre-Market; this preview outlines consensus revenue, margin and EPS expectations, last quarter’s performance, and the majority institutional stance with key drivers to watch.

Market Forecast

Based on the company’s guidance framework and market estimates, current-quarter revenue is projected at 78.57 million US dollars, with EPS at 0.28 and EBIT at 9.68 million; these imply year-over-year increases of 11.39%, 21.88%, and 35.22%, respectively. Forecast commentary points to steady gross margin performance around recent levels and improving operating leverage, with net profit tracking modest expansion on improved product mix and expense control. The company’s core activities remain split between product and services lines, with product carrying the higher mix and driving near-term growth momentum. Network and application security subscriptions within services are viewed as the highest-potential area given recurring nature and cross-sell into existing ADC customers.

Last Quarter Review

Radware reported revenue of 80.25 million US dollars last quarter, a year-over-year increase of 9.88%. Gross profit margin was 80.72%, GAAP net profit attributable to shareholders was 6.04 million US dollars, net profit margin was 7.53%, and adjusted EPS was 0.32, up 18.52% year over year. The quarter showed disciplined expense execution and healthy operating income outperformance versus expectations. By business line, product revenue was 189.58 million US dollars and services revenue was 112.27 million US dollars on a trailing-period basis, with product maintaining the larger share and anchoring growth.

Current Quarter Outlook

Main business: Product and Services Mix

The company’s product line continues to set the pace for near-term revenue growth, supported by demand for application delivery and security platforms. Given the last quarter’s gross margin of 80.72%, incremental product sales can support margin resilience if deal discounts remain contained. A balanced focus on services attach and subscription renewals should reinforce total contract value and smooth revenue recognition across quarters.

Most promising business: Security Subscriptions and Service Recurrence

Recurring security subscriptions embedded in services offer the strongest medium-term growth potential due to high renewal rates and expanding feature adoption. With services comprising 37.19% of the revenue mix on the latest disclosed split, upsell into existing customers can raise lifetime value while providing visibility into cash flows. The reported upward trajectory in EPS and EBIT estimates for the current quarter aligns with a mix shift toward higher-value, software-led offerings.

Factors most impacting the stock price this quarter

Execution versus the 78.57 million US dollars revenue estimate and delivery of the 0.28 EPS forecast are likely to be the primary stock catalysts. Margin commentary will be closely watched; investors will look for signs that gross margin can remain near the 80% area while operating leverage improves alongside growth. Bookings and pipeline color for security subscriptions, along with customer adoption trends across regions, will influence views on sustainability of double-digit year-over-year growth.

Analyst Opinions

Across recent institutional commentary, the majority tilt is cautiously bullish, emphasizing improving profitability metrics and stable double-digit revenue growth into this quarter. Positive views highlight the projected 11.39% revenue increase and 21.88% EPS growth year over year, citing improving operating leverage and support from recurring security subscriptions. In these assessments, the key validation points remain sustained gross margins near recent levels, progress on subscription and renewals, and prudent operating expense management to convert top-line growth into EPS expansion.