JFrog (FROG) faces strong Artifactory consumption, a robust pipeline, rising Curation demand, and growing AI customers, as Q2 checks suggest, supporting expectations for 4% to 5% revenue upside versus consensus, Oppenheimer said in a note Wednesday.

The company is scheduled to report its Q2 results on Aug. 6.

Artificial intelligence and agentic coding remain consumption catalysts, accelerating binary and package generation as well as Artifactory use, while node package manager breaches are aiding demand and security upsells, according to the note.

JFrog's engagement with leading AI vendors as customers highlights its differentiation, easing concerns of AI disintermediation and showing potential for adding more AI-native customers, the brokerage said.

Oppenheimer expects the positives to be reflected in Q3 guidance and a modest increase to full-year guidance, with the outlook continuing to be built only on committed consumption.

Oppenheimer kept an outperform rating on JFrog and raised the price target to $105 from $80.

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