JFrog Ltd (NASDAQ:FROG) shares are up on Thursday following the announcement of a $300 million share repurchase program. This move reflects the company’s confidence in its strategy and growth potential, adding pressure as broader markets edged lower.
• JFrog stock is showing exceptional strength. Why are FROG shares rallying?
JFrog Announces $300M Share Buyback
JFrog's board has authorized a share repurchase program of up to $300 million, signaling confidence in the company's financial position and long-term growth outlook. The buyback will be funded through cash on hand and future operating cash flow.
The company may repurchase shares through open market purchases or privately negotiated transactions, underscoring its focus on returning capital to shareholders while preserving flexibility for strategic investments.
Earlier this month, JFrog reported fiscal 2025 revenue of $531.8 million, up 24% year over year, with cloud revenue climbing 45% to $243.3 million. Fourth-quarter adjusted earnings of 22 cents per share beat estimates of 19 cents, and revenue of $145.3 million topped expectations. Non-GAAP gross margin was 83.7% in the quarter and 83.3% for the full year.
Remaining performance obligations rose 40% to $565.7 million, and customers with more than $1 million in annual recurring revenue increased 42% to 74, reflecting strong enterprise adoption. The company generated $142.3 million in free cash flow and ended the year with $704.4 million in cash and investments.
For fiscal 2026, JFrog expects adjusted earnings of 88 cents to 92 cents per share on revenue of $623 million to $628 million, ahead of consensus estimates of 88 cents and $611.683 million.
JFrog Earnings Outlook and Analyst Views
Looking further out, the next major catalyst for the stock arrives with the May 7, 2026, earnings report.
- EPS Estimate: 10 cents (Down from 20 cents)
- Revenue Estimate: $147.31 million (Up from $122.41 million)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $65.30. Recent analyst moves include:
- Stifel: Buy (Lowers target to $52 on Feb. 23)
- DA Davidson: Buy (Lowers target to $65 on Feb. 13)
- Canaccord Genuity: Buy (Lowers target to $66 on Feb. 13)
FROG Price Action: JFrog shares were up 5.44% at $40.90 at the time of publication on Thursday, according to Benzinga Pro data.
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