Qualys (QLYS) posted solid Q3 results with strong performance, including clear beats on both the top and bottom lines, marking what Wedbush Securities called a step in the right direction as the company advances its platform strategy, according to a Wednesday note.

Total revenue reached $169.9 million, topping estimates of $166.3 million and guidance of $159.7 million-$162.7 million, while earnings per share of $1.86 beat the $1.56 consensus as operating margin rose to a robust 47.1%, according to the report.

For fiscal Q4, Qualys projected revenue of $172 million-$174 million and EPS of $1.73-$1.80, both ahead of consensus estimates of $169.5 million and $1.52, respectively. Analysts surveyed by FactSet expect $172.8 million in revenue and $1.77 in EPS.

Wedbush said that despite a "challenging new business environment," the stronger outlook underscores management's confidence in its platform strategy and disciplined capital execution. The firm called the results a major step in the right direction heading into 2026, though it said there is still work to do as new products are integrated into the platform.

The firm maintained its outperform rating on the stock, with a $155 price target.

Shares of the company jumped nearly 20% in recent trading.

Price: 144.85, Change: +23.64, Percent Change: +19.50