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A month has gone by since the last earnings report for Qualys (QLYS - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Qualys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Qualys Q2 Earnings Beat on Channel Strength, FY26 Guidance RaisedQualys reported second-quarter 2026 non-GAAP earnings of $1.98 per share, which rose 17.9% year over year and beat the Zacks Consensus Estimate by 11.24%. Revenues increased 11% to $182.2 million and surpassed the consensus mark of $179 million by 1.8%.

Results benefited from stronger partner-led execution and broader adoption of differentiated platform offerings. The net dollar expansion rate improved to 105% from 104% in the preceding quarter, signaling better upsell performance among existing customers.

QLYS Gains From Partner-Led GrowthThe channel accounted for 54% of total revenues, up from 49% in the year-ago quarter. Channel-partner revenues climbed 22% year over year, while direct revenues remained largely unchanged. The performance reflected Qualys’ continued emphasis on using partners to expand customer reach and support larger platform transactions.

International growth also outpaced the domestic business. Revenues outside the United States rose 15% compared with 8% growth in the United States. The geographic revenue mix remained 55% domestic and 45% international.

Qualys Broadens Its Platform Booking MixEnterprise TruRisk Management and CyberSecurity Asset Management together represented 12% of last-12-month total bookings, up from 9% a year earlier. The products also contributed 14% of new bookings versus 10% in the prior-year period.

Patch Management accounted for 9% of total bookings, up from 7%, and 16% of new bookings. TotalCloud remained at 5% of total bookings. Meanwhile, vulnerability management’s contribution declined to 49% from 54%, indicating a broader mix as customers adopted newer modules.

QLYS Advances Its AI-Native Risk StrategyQualys introduced InstaScan, powered by Agent Insta, to identify exposure findings within minutes of a vulnerability disclosure without requiring another scan. Findings can then move to Agent Val for exploit validation and immediate risk quantification.

The company also outlined autonomous remediation capabilities that select patches, controlled deployments or compensating controls based on asset risk. Management said live benchmarking reduced the exposure window from 21 days to minutes and automatically patched 60% of vulnerabilities.

Qualys Expands Security for AI WorkloadsTotalAI 2.0 extends visibility across employee AI activity, models, services, code and runtime environments. New capabilities are designed to uncover shadow AI usage and identify AI workloads operating across hybrid and multi-cloud infrastructure.

The platform also added posture-management coverage for Anthropic and OpenAI environments. It can evaluate Model Context Protocol tool exploits across more than 50 adversarial scenarios and prioritize AI-related risks through the TruRisk engine.

QLYS Sustains Strong Margin PerformanceGAAP gross profit rose 12% year over year to $151.9 million, while the gross margin expanded to 83% from 82%. GAAP operating income advanced 20% to $61.9 million, with the operating margin improving to 34% from 31%.

Non-GAAP operating income increased 16% to $81.4 million, and the related margin widened to 45% from 43%. Adjusted EBITDA grew 14% to $83.8 million, representing a margin of 46% compared with 45% a year ago.

Qualys Generates Cash and Returns CapitalThe company ended the second quarter with cash and marketable securities of $703.5 million. Operating cash flow surged 77% year over year to $59.6 million in the second quarter, representing 33% of revenues. Free cash flow totaled $55.9 million, with a margin of 31%. For the first six months of 2026, free cash flow reached $149.5 million, and the margin was 42%.

During the quarter, Qualys spent $76.8 million to repurchase 797,000 shares. The company had $229.8 million remaining under its share repurchase authorization at quarter-end.

QLYS Raises Its 2026 GuidanceManagement increased its full-year 2026 revenue guidance to $732-$738 million from $721-$727 million. The updated range implies growth of 9-10%. Non-GAAP earnings are now projected between $7.74 and $7.88 per share, up from the prior forecast of $7.44-$7.65.

For the third quarter, Qualys expects revenues of $185.5-$187.5 million, calling for 9-10% year-over-year growth. Non-GAAP earnings are projected in the range of $1.91-$1.98 per share. Management continues to expect an adjusted EBITDA margin in the mid-40% range and a free cash flow margin in the low-40% range for 2026.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Qualys has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Qualys has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerQualys is part of the Zacks Security industry. Over the past month, Varonis Systems (VRNS - Free Report) , a stock from the same industry, has gained 7.7%. The company reported its results for the quarter ended June 2026 more than a month ago.

Varonis reported revenues of $180.02 million in the last reported quarter, representing a year-over-year change of +18.3%. EPS of $0.04 for the same period compares with $0.03 a year ago.

For the current quarter, Varonis is expected to post earnings of $0.02 per share, indicating a change of -66.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Varonis. Also, the stock has a VGM Score of D.

Aurora Investment Counsel acquired a new position in Qualys, Inc. (NASDAQ:QLYS – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 18,653 shares of the software maker’s stock, valued at approximately $2,565,000. Qualys comprises approximately 1.3% of Aurora Investment Counsel’s holdings, making the stock its 15th largest position. Aurora Investment Counsel owned 0.05% of Qualys at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Strive Financial Group LLC acquired a new position in shares of Qualys during the 4th quarter worth $27,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Qualys by 204.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 213 shares of the software maker’s stock valued at $28,000 after purchasing an additional 143 shares during the last quarter. Root Financial Partners LLC lifted its stake in shares of Qualys by 206.2% in the 1st quarter. Root Financial Partners LLC now owns 297 shares of the software maker’s stock valued at $26,000 after purchasing an additional 200 shares during the last quarter. Employees Retirement System of Texas acquired a new stake in shares of Qualys in the 4th quarter valued at $43,000. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in Qualys by 37,400.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 375 shares of the software maker’s stock worth $50,000 after purchasing an additional 374 shares in the last quarter. Institutional investors own 99.31% of the company’s stock.

Insider Activity In related news, CEO Sumedh S. Thakar sold 30,000 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $135.00, for a total transaction of $4,050,000.00. Following the completion of the sale, the chief executive officer owned 196,686 shares in the company, valued at $26,552,610. This trade represents a 13.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Joo Mi Kim sold 1,627 shares of Qualys stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $153.04, for a total transaction of $248,996.08. Following the transaction, the chief financial officer directly owned 75,743 shares of the company’s stock, valued at $11,591,708.72. This represents a 2.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 71,979 shares of company stock worth $9,217,993 over the last 90 days. 0.72% of the stock is currently owned by company insiders.

Qualys Stock Down 0.7% Qualys stock opened at $186.68 on Thursday. The business has a 50 day moving average price of $148.18 and a two-hundred day moving average price of $115.16. The stock has a market cap of $6.46 billion, a price-to-earnings ratio of 32.30 and a beta of 0.60. Qualys, Inc. has a 12 month low of $74.51 and a 12 month high of $201.54. Qualys (NASDAQ:QLYS – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.98 earnings per share for the quarter, topping the consensus estimate of $1.78 by $0.20. Qualys had a return on equity of 37.52% and a net margin of 29.38%.The company had revenue of $182.18 million for the quarter, compared to analyst estimates of $178.57 million. During the same quarter last year, the firm earned $1.68 EPS. Qualys’s revenue for the quarter was up 11.1% compared to the same quarter last year. Qualys has set its FY 2026 guidance at 7.740-7.880 EPS and its Q3 2026 guidance at 1.910-1.980 EPS. On average, analysts expect that Qualys, Inc. will post 5.85 earnings per share for the current fiscal year.

Analyst Ratings Changes QLYS has been the topic of several analyst reports. Jefferies Financial Group increased their target price on shares of Qualys from $150.00 to $185.00 and gave the stock a “hold” rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. boosted their price target on Qualys from $139.00 to $150.00 and gave the stock a “neutral” rating in a research report on Monday, July 27th. Weiss Ratings upgraded Qualys from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, July 16th. Morgan Stanley increased their price objective on Qualys from $115.00 to $130.00 and gave the company an “underweight” rating in a report on Wednesday, August 5th. Finally, Piper Sandler raised their price objective on Qualys from $100.00 to $175.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $170.53.

Check Out Our Latest Analysis on Qualys

Qualys Profile (Free Report)

Qualys, Inc (NASDAQ: QLYS) is a leading provider of cloud-based security and compliance solutions designed to help organizations streamline their IT security programs. Operating on a unified, modular platform, Qualys offers continuous visibility into global IT assets through a combination of lightweight cloud agents and on-premises scanner appliances. The platform supports an array of security and compliance use cases, enabling real-time detection of vulnerabilities, policy violations and misconfigurations across on-premises, cloud and hybrid environments.

The company’s flagship Qualys Cloud Platform delivers a suite of integrated applications, including vulnerability management, detection and response (VMDR), policy compliance, web application scanning, file integrity monitoring, asset inventory and container security.

See Also Five stocks we like better than Qualys Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding QLYS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Qualys, Inc. (NASDAQ:QLYS – Free Report).

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Posted by Defense World Staff on Aug 6th, 2026

Empowered Funds LLC raised its position in Qualys, Inc. (NASDAQ:QLYS – Free Report) by 668.2% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 27,370 shares of the software maker’s stock after purchasing an additional 23,807 shares during the period. Empowered Funds LLC owned 0.08% of Qualys worth $2,404,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in QLYS. NewEdge Advisors LLC boosted its position in Qualys by 3,948.0% during the first quarter. NewEdge Advisors LLC now owns 2,024 shares of the software maker’s stock worth $255,000 after acquiring an additional 1,974 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Qualys in the second quarter valued at approximately $292,000. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Qualys by 3,218.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 531 shares of the software maker’s stock valued at $76,000 after purchasing an additional 515 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Qualys by 482.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 646 shares of the software maker’s stock worth $92,000 after acquiring an additional 535 shares during the last quarter. Finally, Amundi raised its holdings in shares of Qualys by 47.1% during the 2nd quarter. Amundi now owns 21,365 shares of the software maker’s stock worth $3,076,000 after acquiring an additional 6,844 shares during the period. Institutional investors and hedge funds own 99.31% of the company’s stock.

Wall Street Analysts Forecast Growth Several equities research analysts recently issued reports on QLYS shares. Piper Sandler raised their price objective on shares of Qualys from $100.00 to $175.00 and gave the stock a “neutral” rating in a research report on Wednesday. Wedbush decreased their price objective on Qualys from $155.00 to $125.00 and set an “outperform” rating on the stock in a report on Thursday, May 7th. DA Davidson upped their price target on Qualys from $135.00 to $165.00 and gave the company a “neutral” rating in a research note on Wednesday. Northland Securities set a $208.00 price objective on Qualys in a research report on Wednesday. Finally, Canaccord Genuity Group set a $190.00 target price on shares of Qualys in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Qualys currently has an average rating of “Hold” and an average target price of $170.53.

Read Our Latest Analysis on QLYS

Key Headlines Impacting Qualys Here are the key news stories impacting Qualys this week:

Positive Sentiment: Q2 results exceeded expectations. Qualys reported adjusted earnings per share of $1.98, compared with the $1.78 analyst consensus and $1.68 a year earlier. Revenue rose 11.1% year over year to $182.18 million, surpassing the $178.57 million estimate. Qualys Q2 earnings report Positive Sentiment: Full-year guidance was raised materially. Management now expects fiscal 2026 revenue of $732 million to $738 million, up from $721 million to $727 million previously, and EPS of $7.74 to $7.88, above the $7.16 consensus. Third-quarter revenue and EPS guidance also exceeded analyst expectations. Qualys financial results announcement Positive Sentiment: Growth and profitability trends improved. Adjusted EBITDA reached $83.8 million, while current billings increased 16% and channel revenue grew 22%. Management highlighted demand for AI-related security products, Risk Operations Center adoption, federal business and partner sales as growth drivers. Positive Sentiment: Scotiabank became more bullish. The firm raised its Qualys price target from $190 to $220 and upgraded the stock to “sector outperform,” reinforcing the positive reaction to the earnings beat and higher outlook. Positive Sentiment: Qualys launched InstaScan. The new capability uses existing asset telemetry and AI-driven analysis to identify newly disclosed vulnerabilities without requiring traditional scan windows, potentially strengthening the company’s enterprise security platform. Qualys InstaScan launch Insider Activity In other news, CFO Joo Mi Kim sold 1,627 shares of the business’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $100.17, for a total transaction of $162,976.59. Following the completion of the transaction, the chief financial officer directly owned 83,211 shares of the company’s stock, valued at approximately $8,335,245.87. The trade was a 1.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bruce K. Posey sold 2,384 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $100.18, for a total transaction of $238,829.12. Following the completion of the sale, the insider directly owned 66,301 shares in the company, valued at approximately $6,642,034.18. This trade represents a 3.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 76,855 shares of company stock worth $9,706,670. 0.72% of the stock is currently owned by company insiders.

Qualys Trading Up 13.8% Qualys stock opened at $183.25 on Thursday. The firm has a market capitalization of $6.45 billion, a P/E ratio of 31.70 and a beta of 0.60. Qualys, Inc. has a twelve month low of $74.51 and a twelve month high of $201.54. The stock’s fifty day simple moving average is $132.86 and its 200-day simple moving average is $111.34.

Qualys (NASDAQ:QLYS – Get Free Report) last released its earnings results on Tuesday, August 4th. The software maker reported $1.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.78 by $0.20. Qualys had a return on equity of 37.67% and a net margin of 29.38%.The firm had revenue of $182.18 million during the quarter, compared to analyst estimates of $178.57 million. During the same period last year, the business posted $1.68 earnings per share. Qualys’s revenue was up 11.1% compared to the same quarter last year. Qualys has set its FY 2026 guidance at 7.740-7.880 EPS and its Q3 2026 guidance at 1.910-1.980 EPS. Sell-side analysts predict that Qualys, Inc. will post 5.47 earnings per share for the current year.

Qualys Company Profile (Free Report)

Qualys, Inc (NASDAQ: QLYS) is a leading provider of cloud-based security and compliance solutions designed to help organizations streamline their IT security programs. Operating on a unified, modular platform, Qualys offers continuous visibility into global IT assets through a combination of lightweight cloud agents and on-premises scanner appliances. The platform supports an array of security and compliance use cases, enabling real-time detection of vulnerabilities, policy violations and misconfigurations across on-premises, cloud and hybrid environments.

The company’s flagship Qualys Cloud Platform delivers a suite of integrated applications, including vulnerability management, detection and response (VMDR), policy compliance, web application scanning, file integrity monitoring, asset inventory and container security.

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Q2 Revenue Growth of 11% Year-Over-Year
Raises 2026 Revenue Guidance to $732.0-$738.0 million

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the second quarter ended June 30, 2026. For the quarter, the Company reported revenues of $182.2 million, net income under United States Generally Accepted Accounting Principles ("GAAP") of $52.4 million, non-GAAP net income of $69.2 million, Adjusted EBITDA of $83.8 million, GAAP net income per diluted share of $1.50, and non-GAAP net income per diluted share of $1.98.

"In Q2, we continued to execute well, demonstrated by another quarter of solid revenue growth and profitability," said Sumedh Thakar, Qualys' president and CEO. "Qualys' continuous innovation spanning AI for security and security for AI, growing AI-native Risk Operations Center adoption powered by our Enterprise TruRisk Management solution, a growing federal pipeline of new business opportunity, strong partner-led execution, and promising early QFlex engagement continue to reinforce the demand we're seeing for a unified risk management platform that autonomously moves beyond theoretical exposure to validated, quantified, and remediated risk at the speed of modern attacks in multi-vendor environments. We believe these achievements not only advance our strong competitive differentiation but also sharpen the market opportunity ahead of us and bolster our confidence in reaccelerating long-term growth in the business."

Second Quarter 2026 Financial Highlights

Revenues: Revenues for the second quarter of 2026 increased by 11% to $182.2 million compared to $164.1 million for the same quarter in 2025.

Gross Profit: GAAP gross profit for the second quarter of 2026 increased by 12% to $151.9 million compared to $135.2 million for the same quarter in 2025. GAAP gross margin was 83% for the second quarter of 2026 compared to 82% for the same quarter in 2025. Non-GAAP gross profit for the second quarter of 2026 increased by 12% to $154.5 million compared to $137.8 million for the same quarter in 2025. Non-GAAP gross margin was 85% for the second quarter of 2026 compared to 84% for the same quarter in 2025.

Operating Income: GAAP operating income for the second quarter of 2026 increased by 20% to $61.9 million compared to $51.4 million for the same quarter in 2025. As a percentage of revenues, GAAP operating income was 34% for the second quarter of 2026 compared to 31% for the same quarter in 2025. Non-GAAP operating income for the second quarter of 2026 increased by 16% to $81.4 million compared to $70.1 million for the same quarter in 2025. As a percentage of revenues, non-GAAP operating income was 45% for the second quarter of 2026 compared to 43% for the same quarter in 2025.

Net Income: GAAP net income for the second quarter of 2026 increased by 11% to $52.4 million, or $1.50 per diluted share, compared to $47.3 million, or $1.29 per diluted share, for the same quarter in 2025. As a percentage of revenues, GAAP net income was 29% for both the second quarter of 2026 and for the same quarter in 2025. Non-GAAP net income for the second quarter of 2026 increased by 13% to $69.2 million, or $1.98 per diluted share, compared to $61.2 million, or $1.68 per diluted share, for the same quarter in 2025. As a percentage of revenues, non-GAAP net income was 38% for the second quarter of 2026 compared to 37% for the same quarter in 2025.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2026 increased by 14% to $83.8 million compared to $73.4 million for the same quarter in 2025. As a percentage of revenues, Adjusted EBITDA was 46% for the second quarter of 2026 compared to 45% for the same quarter in 2025.

Operating Cash Flow: Operating cash flow for the second quarter of 2026 increased by 77% to $59.6 million compared to $33.8 million for the same quarter in 2025. As a percentage of revenues, operating cash flow was 33% for the second quarter of 2026 compared to 21% for the same quarter in 2025.

Second Quarter 2026 Business Highlights

Qualys' TotalCloud solution achieved FedRAMP High Authorization, sponsored by the U.S. Drug Enforcement Administration (DEA). This extends the Qualys Government Platform's authorization to include Cloud-Native Application Protection Platform (CNAPP) capabilities and makes TotalCloud available through the FedRAMP Marketplace for federal agencies and other highly regulated organizations. Qualys collaborated with leading AI and cybersecurity organizations, Anthropic Project Glasswing and Open AI's Trusted Access for Cyber program, to help advance the secure and responsible deployment of frontier AI technologies. Qualys was recognized by Frost & Sullivan in two 2026 Frost Radar™ reports as a Visionary Leader in Cloud and Application Runtime Security and a Leading Technology Player in Cloud-Native Application Protection Platforms (CNAPP). Qualys and Converge announced a joint offering that rewards organizations for demonstrated cybersecurity compliance. The collaboration allows Qualys customers who actively manage and prove strong security hygiene with Enterprise TruRisk Management (ETM) to potentially qualify for reduced cyber insurance premiums from Converge. Hosted ROCon user conferences in London, Milan, Sydney, and Washington, D.C., bringing together security leaders to explore strategies for translating cyber risk into measurable business outcomes in the age of frontier AI. Financial Performance Outlook

Based on information as of today, August 4, 2026, Qualys is issuing the following financial guidance for the third quarter and full year fiscal 2026. The Company emphasizes that the guidance is subject to various important cautionary factors referenced in the sections entitled "Legal Notice Regarding Forward-Looking Statements" and "Non-GAAP Financial Measures" below.

Third Quarter 2026 Guidance: Management expects revenues for the third quarter of 2026 to be in the range of $185.5 million to $187.5 million, representing 9% to 10% growth over the same quarter in 2025. GAAP net income per diluted share is expected to be in the range of $1.43 to $1.50, which assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is expected to be in the range of $1.91 to $1.98, which assumes a non-GAAP effective income tax rate of 20%. Third quarter 2026 net income per diluted share estimates are based on approximately 35.0 million weighted average diluted shares outstanding for the quarter.

Full Year 2026 Guidance: Management now expects revenues for the full year of 2026 to be in the range of $732.0 million to $738.0 million, representing 9% to 10% growth over 2025. This compares to the previous guidance range of $721.0 million to $727.0 million. GAAP net income per diluted share is now expected to be in the range of $5.76 to $5.90, up from the previous guidance range of $5.40 to $5.61. This assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is now expected to be in the range of $7.74 to $7.88, up from the previous guidance range of $7.44 to $7.65. This assumes a non-GAAP effective income tax rate of 20%. Full year 2026 net income per diluted share estimates are based on approximately 35.2 million weighted average diluted shares outstanding.

Qualys has not reconciled non-GAAP net income per diluted share guidance to GAAP net income per diluted share guidance because Qualys does not provide guidance on the various reconciling cash and non-cash items between GAAP net income and non-GAAP net income (i.e., stock-based compensation, amortization of intangible assets from acquisitions and non-recurring items). The actual dollar amount of reconciling items in the third quarter and full year 2026 is likely to have a significant impact on the Company's GAAP net income per diluted share in the third quarter and full year 2026. A reconciliation of the non-GAAP net income per diluted share guidance to the GAAP net income per diluted share guidance is not available without unreasonable effort.

Investor Conference Call

Qualys will host a conference call and live webcast to discuss its second quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, August 4, 2026. To access the conference call by phone, please register here. A live webcast of the earnings conference call, investor presentation and prepared remarks can be accessed at https://investor.qualys.com/events-presentations. A replay of the conference call will be available through the same webcast link following the end of the call.

Investor Contact

Blair King
Senior Vice President, Investor Relations and Financial Planning & Analysis
(650) 538-2088
[email protected]

About Qualys

Qualys, Inc. (NASDAQ: QLYS) is a leading provider of disruptive cloud-based Security, Compliance and IT solutions with more than 10,000 subscription customers worldwide, including a majority of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and consolidate their security and compliance solutions onto a single platform for greater agility, better business outcomes, and substantial cost savings.

The Qualys Enterprise TruRisk Platform leverages a single agent to continuously deliver critical security intelligence while enabling enterprises to automate the full spectrum of vulnerability detection, compliance, and protection for IT systems, workloads and web applications across on premises, endpoints, servers, public and private clouds, containers, and mobile devices. Founded in 1999 as one of the first SaaS security companies, Qualys has strategic partnerships and seamlessly integrates its vulnerability management capabilities into security offerings from cloud service providers, including Amazon Web Services, the Google Cloud Platform and Microsoft Azure, along with a number of leading managed service providers and global consulting organizations. For more information, please visit www.qualys.com.

Qualys, Qualys VMDR® and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, quotations of management and statements related to: the benefits of our existing, new and upcoming products, features, integrations, collaborations and joint solutions, and their impact upon our long-term growth; our expectations regarding AI for security and security for AI; our expectations regarding business opportunities with the federal government; our expectations regarding our business partners; our ability to advance our value proposition and competitive differentiation in the market; our ability to address demand trends; our ability to maintain and strengthen our category leadership; our ability to solve modern security challenges at scale; our strategies and ability to achieve and maintain durable profitable growth; our guidance for revenues, GAAP EPS and non-GAAP EPS for the third quarter and full year 2026; and our expectations for the number of weighted average diluted shares outstanding and the GAAP and non-GAAP effective income tax rate for the third quarter and full year 2026. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; real or perceived defects, errors or vulnerabilities in our products or services; our ability to retain existing customers and generate new customers; the budgeting cycles and seasonal buying patterns of our customers; our ability to maintain government authorizations applicable to our platform; general market, political, economic and business conditions in the United States as well as globally; our ability to manage costs as we increase our customer base and the number of our platform solutions; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; fluctuations in currency exchange rates; unexpected fluctuations in our effective income tax rate on a GAAP and non-GAAP basis; our ability to effectively manage our rapid growth and our ability to anticipate future market needs and opportunities; and any unanticipated accounting charges. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with GAAP, Qualys provides investors with certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA (defined as earnings before interest expense, interest income and other income (expense), net, income taxes, depreciation, amortization, and stock-based compensation) and non-GAAP free cash flows (defined as cash provided by operating activities less purchases of property and equipment, net of proceeds from disposal).

In computing non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense, amortization of intangible assets from acquisitions, non-recurring items and for non-GAAP net income, impairment of non-marketable securities and certain tax effects. Qualys believes that these non-GAAP financial measures help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows.

Furthermore, Qualys uses some of these non-GAAP financial measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.

Although Qualys does not focus on or use quarterly billings in managing or monitoring the performance of its business, Qualys provides calculated current billings (defined as total revenues recognized in a period plus the sequential change in current deferred revenue in the corresponding period) for the convenience of investors and analysts in building their own financial models.

In order to provide a more complete picture of recurring core operating business results, the Company's non-GAAP net income and non-GAAP net income per diluted share include adjustments for non-recurring income tax items and certain tax effects of non-GAAP adjustments to achieve the effective income tax rate on a non-GAAP basis. The Company's non-GAAP effective tax rate may differ from the GAAP effective income tax rate as a result of these income tax adjustments. The Company believes its estimated non-GAAP effective income tax rate of 20% in 2026 is a reasonable estimate under its current global operating structure and core business operations. The Company may adjust this rate during the year to take into account events or trends that it believes materially impact the estimated annual rate. The non-GAAP effective income tax rate could be subject to change for a number of reasons, including but not limited to, significant changes resulting from tax legislation, material changes in geographic mix of revenues and expenses and other significant events.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.

Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Revenues

$      182,175

$      164,062

$      357,813

$      323,961

Cost of revenues (1)

30,244

28,877

60,234

57,803

Gross profit

151,931

135,185

297,579

266,158

Operating expenses:

Research and development (1)

30,685

30,249

59,705

59,403

Sales and marketing (1)

41,024

35,810

79,784

68,470

General and administrative (1)

18,320

17,719

35,303

35,123

Total operating expenses

90,029

83,778

174,792

162,996

Income from operations

61,902

51,407

122,787

103,162

Other income (expense), net:

Interest income

6,241

6,407

12,417

12,642

Other income (expense), net

(1,080)

999

(3,151)

1,316

Total other income, net

5,161

7,406

9,266

13,958

Income before income taxes

67,063

58,813

132,053

117,120

Income tax provision

14,658

11,523

29,005

22,296

Net income

$       52,405

$       47,290

$      103,048

$       94,824

Net income per share:

Basic

$          1.50

$          1.30

$          2.92

$          2.61

Diluted

$          1.50

$          1.29

$          2.91

$          2.59

Weighted average shares used in computing net income per share:

Basic

34,989

36,253

35,297

36,359

Diluted

35,030

36,519

35,353

36,651

(1) Includes stock-based compensation as follows:

Cost of revenues

$        1,941

$        1,980

$        4,002

$        4,070

Research and development

4,511

4,963

9,119

10,067

Sales and marketing

3,712

3,083

7,901

6,283

General and administrative

8,649

8,020

17,131

16,446

Total stock-based compensation, net of amounts capitalized

$       18,813

$       18,046

$       38,153

$       36,866

Qualys, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$      250,291

$      250,258

Short-term marketable securities

176,003

195,681

Accounts receivable, net

139,779

170,991

Prepaid expenses and other current assets

52,620

40,686

Total current assets

618,693

657,616

Long-term marketable securities

277,171

250,868

Property and equipment, net

22,591

23,166

Operating leases - right of use asset

48,184

46,001

Deferred tax assets, net

69,569

74,518

Intangible assets, net

2,976

4,255

Goodwill

7,447

7,447

Noncurrent restricted cash

1,200

1,200

Other noncurrent assets

26,342

30,010

Total assets

$   1,074,173

$   1,095,081

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$        1,154

$        1,202

Accrued liabilities

49,250

57,694

Deferred revenues, current

388,075

401,127

Operating lease liabilities, current

8,554

7,315

Total current liabilities

447,033

467,338

Deferred revenues, noncurrent

14,237

16,285

Operating lease liabilities, noncurrent

44,845

44,959

Other noncurrent liabilities

5,835

5,346

Total liabilities

511,950

533,928

Stockholders' equity:

Common stock

35

36

Additional paid-in capital

753,067

731,788

Accumulated other comprehensive loss

(3,284)

(4,012)

Accumulated deficit

(187,595)

(166,659)

Total stockholders' equity

562,223

561,153

Total liabilities and stockholders' equity

$   1,074,173

$   1,095,081

Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

Six Months Ended
June 30,

2026

2025

Cash flow from operating activities:

Net income

$      103,048

$       94,824

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

6,105

8,155

Provision for credit losses

328

850

Impairment of property and equipment

624

—

Impairment of non-marketable securities

1,967

—

Stock-based compensation, net of amounts capitalized

38,153

36,866

Accretion of discount on marketable securities, net

(857)

(2,008)

Deferred income taxes

4,278

(8,605)

Changes in operating assets and liabilities:

Accounts receivable

30,884

35,026

Prepaid expenses and other assets

(7,748)

(4,609)

Accounts payable

(96)

699

Accrued liabilities and other noncurrent liabilities

(6,678)

3,683

Deferred revenues

(15,100)

(21,522)

Net cash provided by operating activities

154,908

143,359

Cash flow from investing activities:

Purchases of marketable securities

(146,477)

(183,545)

Sales and maturities of marketable securities

137,437

100,770

Purchases of property and equipment

(5,367)

(3,365)

Net cash used in investing activities

(14,407)

(86,140)

Cash flow from financing activities:

Repurchase of common stock

(131,388)

(89,545)

Proceeds from exercise of stock options

934

5,577

Payments for taxes related to net share settlement of equity awards

(13,865)

(15,267)

Proceeds from issuance of common stock through employee stock purchase plan

3,851

3,817

Net cash used in financing activities

(140,468)

(95,418)

Net increase (decrease) in cash, cash equivalents and restricted cash

33

(38,199)

Cash, cash equivalents and restricted cash at beginning of period

251,458

233,382

Cash, cash equivalents and restricted cash at end of period

$      251,491

$      195,183

Qualys, Inc. 

RECONCILIATION OF NON-GAAP DISCLOSURES

ADJUSTED EBITDA

(unaudited)

(in thousands, except percentages)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net income

$     52,405

$     47,290

$   103,048

$     94,824

Net income as a percentage of revenues

29 %

29 %

29 %

29 %

Depreciation and amortization of property and equipment

2,423

3,339

4,826

6,876

Amortization of intangible assets

639

639

1,279

1,279

Income tax provision

14,658

11,523

29,005

22,296

Stock-based compensation

18,813

18,046

38,153

36,866

Total other income, net

(5,161)

(7,406)

(9,266)

(13,958)

Adjusted EBITDA

$     83,777

$     73,431

$   167,045

$   148,183

Adjusted EBITDA as a percentage of revenues

46 %

45 %

47 %

46 %

Qualys, Inc. 

RECONCILIATION OF NON-GAAP DISCLOSURES

(unaudited)

(in thousands, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

GAAP Cost of revenues

$       30,244

$       28,877

$       60,234

$       57,803

Less: Stock-based compensation

(1,941)

(1,980)

(4,002)

(4,070)

Less: Amortization of intangible assets

(639)

(639)

(1,279)

(1,279)

Non-GAAP Cost of revenues

$       27,664

$       26,258

$       54,953

$       52,454

GAAP Gross profit

$      151,931

$      135,185

$      297,579

$      266,158

Plus: Stock-based compensation

1,941

1,980

4,002

4,070

Plus: Amortization of intangible assets

639

639

1,279

1,279

Non-GAAP Gross Profit

$      154,511

$      137,804

$      302,860

$      271,507

GAAP Research and development

$       30,685

$       30,249

$       59,705

$       59,403

Less: Stock-based compensation

(4,511)

(4,963)

(9,119)

(10,067)

Non-GAAP Research and development

$       26,174

$       25,286

$       50,586

$       49,336

GAAP Sales and marketing

$       41,024

$       35,810

$       79,784

$       68,470

Less: Stock-based compensation

(3,712)

(3,083)

(7,901)

(6,283)

Non-GAAP Sales and marketing

$       37,312

$       32,727

$       71,883

$       62,187

GAAP General and administrative

$       18,320

$       17,719

$       35,303

$       35,123

Less: Stock-based compensation

(8,649)

(8,020)

(17,131)

(16,446)

Non-GAAP General and administrative

$        9,671

$        9,699

$       18,172

$       18,677

GAAP Operating expenses

$       90,029

$       83,778

$      174,792

$      162,996

Less: Stock-based compensation

(16,872)

(16,066)

(34,151)

(32,796)

Non-GAAP Operating expenses

$       73,157

$       67,712

$      140,641

$      130,200

GAAP Income from operations

$       61,902

$       51,407

$      122,787

$      103,162

Plus: Stock-based compensation

18,813

18,046

38,153

36,866

Plus: Amortization of intangible assets

639

639

1,279

1,279

Non-GAAP Income from operations

$       81,354

$       70,092

$      162,219

$      141,307

GAAP Net income

$       52,405

$       47,290

$      103,048

$       94,824

Plus: Stock-based compensation

18,813

18,046

38,153

36,866

Plus: Amortization of intangible assets

639

639

1,279

1,279

Plus: Impairment of non-marketable securities

—

—

1,967

—

Less: Tax adjustment

(2,647)

(4,763)

(5,687)

(10,310)

Non-GAAP Net income

$       69,210

$       61,212

$      138,760

$      122,659

GAAP Net income per share:

Basic

$          1.50

$          1.30

$          2.92

$          2.61

Diluted

$          1.50

$          1.29

$          2.91

$          2.59

Non-GAAP Net income per share:

Basic

$          1.98

$          1.69

$          3.93

$          3.37

Diluted

$          1.98

$          1.68

$          3.92

$          3.35

Weighted average shares used in GAAP and non-GAAP net income per share:

Basic

34,989

36,253

35,297

36,359

Diluted

35,030

36,519

35,353

36,651

Qualys, Inc. 

RECONCILIATION OF NON-GAAP DISCLOSURES

FREE CASH FLOWS

(unaudited)

(in thousands)

Six Months Ended
June 30,

2026

2025

GAAP Cash flows provided by operating activities

$      154,908

$      143,359

Less:

Purchases of property and equipment, net of proceeds from disposal

(5,367)

(3,365)

Non-GAAP Free cash flows

$      149,541

$      139,994

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

CALCULATED CURRENT BILLINGS

(unaudited)

(in thousands, except percentages)

Three Months Ended
June 30,

2026

2025

GAAP Revenue

$   182,175

$   164,062

GAAP Revenue growth compared to same quarter of prior year

11 %

10 %

Plus: Current deferred revenue at June 30

388,075

354,971

Less: Current deferred revenue at March 31

(393,800)

(366,824)

Non-GAAP Calculated current billings

$   176,450

$   152,209

Calculated current billings growth compared to same quarter of prior year

16 %

8 %

SOURCE Qualys, Inc.

New capabilities in TotalAI enable CISOs to reduce shadow AI, flag abnormal model behavior, and prove controls are working across development and runtime

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of cloud-based IT, security and compliance solutions, today announced new capabilities in TotalAI, built on the Qualys Enterprise TruRisk Platform, to empower organizations to discover, test, monitor, and govern enterprise AI risk from design to production. TotalAI provides enterprise CISOs with robust AI governance and risk management capabilities that satisfy new policy requirements around safe AI use in the U.S. and EU.

Qualys TotalAI: AI Governance Dashboard Enterprise AI adoption has outrun the controls built to govern it. Organizations are layering models, AI agents, and Model Context Protocol (MCP) servers onto security programs never designed for them, while attackers weaponize the same AI tools to move faster than defenders can track. Moreover, no other single point tool answers the questions security leaders face daily: Where is AI running? Which models can leak data or be manipulated? What are AI agents connected to? And can we prove our controls are working? TotalAI answers all four — with the same TruRisk score security teams already use for vulnerabilities, cloud, and containers.

"AI is outrunning the controls built to govern it, and security teams can no longer treat that risk as a separate list to be scanned and closed," said Grace Trinidad, Research Director at IDC. "The industry is moving beyond simply counting vulnerabilities toward continuously minimizing the exploitable surface, what is actually reachable and can be made to do harm, and AI is turning that shift from good practice to a requirement. Organizations that fold AI risk into continuous exposure management, spanning discovery, assessment, runtime visibility, and governance, will be the organizations positioned to adopt AI securely and at scale."

Qualys TotalAI provides enterprises with end-to-end AI security:

Gain total visibility into AI use — Discover shadow AI, cloud AI services, AI agents, models, MCP servers, AI containers, and browser-based AI, so teams know where AI runs across the enterprise and who owns the risk. Govern agentic AI, models and integrations end to end — See and control the tool calls AI agents make over MCP, so an agent's reach can be contained if needed. Kernel-level (eBPF) instrumentation reveals what AI workloads execute on servers, delivering visibility that scanners and logs can't provide. Prove governance is working — Give security, engineering, and governance, risk, and compliance (GRC) teams audit-ready evidence of what AI exists, the severity and impact of any issues, and a TruRisk-based prioritization plan of what to fix first. Shift AI security left — Find AI vulnerabilities, misconfigurations, and exposed secrets earlier, in code and pipelines. Test models for prompt injection, jailbreaks, and unsafe output before they reach production. Go beyond posture to adversarial testing — TotalAI red-teams both LLMs (prompt injection, jailbreaks) and MCP servers (tool poisoning, SSRF, rug-pull), mapped to the OWASP LLM & MCP Top 10 and the EU AI Act. While most tools govern MCP access, TotalAI scans the MCP server itself. "With every modern enterprise leveraging AI, the question is changing from 'Is my AI secure?' to 'Can I prove it to my board and regulators?'" said Sumedh Thakar, president and CEO of Qualys. "TotalAI gives enterprises a single, unified way to assess, govern, and secure AI risk continuously — not through periodic snapshots, but with the real-time clarity and discipline Qualys is known for."

Availability
TotalAI is generally available. To learn more, visit qualys.com/free-trial-new/totalai or visit our booth #2333 at Black Hat USA 2026.

Additional Resources

Read our blog post, "Operationalize AI Governance Across Shadow GenAI, MCP, and Agentic Workloads with Qualys TotalAI" Book a meeting with us at Black Hat USA 2026 Request a demo at qualys.com/free-trial-new/totalai Register for the webinar, "You Are Securing AI. Can You Prove Your AI Is Secure?"  Follow Qualys on LinkedIn, Instagram and X About Qualys   
Qualys, Inc. (NASDAQ: QLYS) is a leading provider of cloud-based security, compliance and IT solutions with more than 10,000 subscription customers worldwide, including a majority of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and automate their security and compliance solutions onto a single platform for greater agility, better business outcomes, and substantial cost savings.

The Qualys Enterprise TruRisk Platform leverages a single agent to continuously deliver critical security intelligence while enabling enterprises to automate the full spectrum of vulnerability detection, compliance, and protection for IT systems, workloads and web applications across on premises, endpoints, servers, public and private clouds, containers, and mobile devices. Founded in 1999 as one of the first SaaS security companies, Qualys has strategic partnerships and seamlessly integrates its vulnerability management capabilities into security offerings from cloud service providers, including Oracle Cloud Infrastructure, Amazon Web Services, the Google Cloud Platform and Microsoft Azure, along with a number of leading managed service providers and global consulting organizations. For more information, please visit http://www.qualys.com

.Qualys, Qualys VMDR®, Qualys TruRisk and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.

Media Contact:   
Rachel Yap Winship 
Qualys
[email protected]

SOURCE Qualys, Inc.