Qualys (QLYS) reported a "strong" Q2 as it continued to integrate new products into its platform to take advantage of expanding market opportunities with artificial intelligence increasing threats to its customers, Wedbush Securities said in a note Wednesday.

The firm noted that the company's Q2 earnings per share of $1.68 and revenue of $164.1 million exceeded guidance and Street estimates.

Qualys also boosted full year 2025 guidance across the board because of strength from large enterprises, Wedbush said, adding this is expected to be viewed positively by the market.

"The company continues to see a stronger mix of new business growth and expansion deals in the pipeline," the firm said.

Wedbush raised its price target on Qualys to $155 from $145 and maintained its outperform rating.

The company's shares were down over 2% in recent trading.

Price: 127.75, Change: -2.86, Percent Change: -2.19