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TruConfidence brings AI-powered remediation intelligence to help organizations eliminate cyber risk at machine speed and increase confidence in business resiliency

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a pioneer of cloud-native cyber risk management, today announced TruRisk Eliminate™ 2.0 with TruConfidence™, a new remediation intelligence and orchestration engine that powers Qualys' vision for Autonomous RemOps, a new category for the frontier AI era. Built on Qualys' extensive experience of deploying half a billion patches with less than 0.1% rollback, of which 40% were deployed autonomously, TruRisk Eliminate combines the latest advances in autonomous remediation, remediation intelligence and orchestration to help organizations confidently eliminate cyber risk at machine speed while maintaining business resiliency and continuity.

TruRisk Eliminate brings AI-powered remediation intelligence for autonomous RemOps, while increasing confidence in business resiliency

As AI accelerates vulnerability discovery and exploitation, the ability to remediate risk has become a critical constraint. Security teams must not only determine what needs to be fixed, but also account for controls already protecting the environment, select the appropriate, safe remediation path, manage deployment risk across increasingly complex environments and verify that remediation succeeded without disrupting business operations. Traditional remediation processes, built around manual decisions, tickets and point solutions, were not designed for this level of speed or complexity.

"For years, security teams found vulnerabilities and IT operations teams patched them. That handoff was built for exploitation timelines measured in weeks. With frontier AI, those timelines are now measured in hours, and neither team can close that gap alone," said Jon Nelson, principal advisory director in the Security & Privacy practice, Info-Tech Research Group. "Qualys TruRisk Eliminate gives security a viable path to drive remediation at machine speed, with patch reliability scoring, progressive rollouts, and patchless mitigation that reduce the risk of disrupting operations."

TruConfidence is the cyber risk remediation and orchestration intelligence engine that turns TruRisk Eliminate into an operating model for Autonomous RemOps. It brings together the capabilities Qualys introduced over the past two quarters, including the AI-powered Patch Reliability Score, intelligent wave-based remediation orchestrated by Agent Sara, peer-to-peer distribution and compensating controls with intelligence drawn from half a billion real-world patch deployments. These capabilities enable organizations to reduce exposure with the least disruptive remediation, while avoiding duplicate protections already provided by existing controls. This establishes the core operating loop for Autonomous RemOps: fix the minimum, credit existing controls, choose the right remediation path, control the rollout, and prove that it held.

TruRisk Eliminate with TruConfidence enables organizations to:

Remediate across the entire hybrid attack surface. TruRisk Eliminate now reaches perimeter devices, cloud, and applications, not just agent-based endpoints, to patch, mitigate without a patch, uninstall, isolate or apply a custom fix wherever the exposure lives. Assets that cannot run an agent are remediated through Qualys scanners and existing security and IT integrations, so nothing is left waiting on a manual workaround.

Reduce exposure when patching is not the answer. TruConfidence first credits what existing security controls already protect, so teams avoid duplicate coverage. When exposures remain, built-in third-party mitigation intelligence identifies available compensating controls and applies mitigations through security tools customers already run on their perimeter and end points. This reduces exposure while a permanent fix is planned or validated, moving organizations from "wait for a patch" to "taking the right available action."

Ensure operational continuity, with no business disruption after remediation. After every action, TruRisk Eliminate monitors system health through integrations with partners such as Dynatrace, watching for CPU spikes, memory issues and other service-impacting conditions. When a fix does not hold, AI-powered Patch Failure Analysis explains why it happened and recommends the corrective action, such as a roll-back.

"Autonomous exploitation requires an equally automated remediation, but organizations' hesitation isn't about automation, it's a lack of confidence that it won't cause an outage", said Sumedh Thakar, president and CEO, Qualys. "That's why we're excited to introduce TruRisk Eliminate with TruConfidence, moving beyond patching to turn remediation intelligence into action with the Risk Operations Center (ROC) so organizations have the confidence to reduce cyber risk quickly while reducing outage concerns."

Availability            
Qualys TruRisk Eliminate 2.0 with TruConfidence is now generally available with a free upgrade for existing TruRisk Eliminate customers. Qualys will demonstrate its vision for RemOps and how it advances the Risk Operations Center (ROC) at ROCon Americas 2026, October 14-15 in Austin, TX.

Additional Resources            

Read our blog post, "TruConfidence: Why Your Patch Automation Can Finally Be Autonomous" 
Register for the webinar, "From Backlog to Confidence: Autonomous RemOps Your Business Can Trust"
Sign up for a free trial of Qualys TruRisk Eliminate
Follow Qualys on LinkedIn, Instagram and X
About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a pioneer of cloud-native cyber risk management, helping organizations measure, communicate, and eliminate cyber risk. The Qualys platform and its solutions power the Risk Operations Center (ROC), unifying asset visibility, exposure management, risk prioritization, and remediation to help organizations continuously reduce risk across hybrid, multi-cloud, endpoint, and AI environments. Qualys equips security and IT teams for the Frontier AI Era with AI-speed detection, hyper-prioritization, and autonomous remediation. Trusted by more than 10,000 organizations globally, including most of the Fortune 100, Qualys helps customers transform cybersecurity into a measurable business function that strengthens resilience and drives business outcomes. For more information, visit www.qualys.com. 

Media Contact:   
Rachel Yap Winship 
Qualys
[email protected]

SOURCE Qualys, Inc.

Qualys, Inc. (NASDAQ:QLYS – Get Free Report)’s stock price hit a new 52-week high on Tuesday. The stock traded as high as $204.41 and last traded at $201.5790, with a volume of 36099 shares changing hands. The stock had previously closed at $198.68.

Wall Street Analysts Forecast Growth Several brokerages have recently commented on QLYS. Wedbush downgraded Qualys from an “outperform” rating to a “neutral” rating and set a $175.00 price objective on the stock. in a research report on Thursday, September 10th. Scotiabank increased their price target on shares of Qualys from $190.00 to $220.00 and gave the company an “outperform” rating in a report on Wednesday, August 5th. DA Davidson raised their price objective on Qualys from $135.00 to $165.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Robert W. Baird set a $160.00 price objective on Qualys in a research note on Wednesday, August 5th. Finally, Truist Financial lifted their target price on Qualys from $160.00 to $185.00 and gave the stock a “hold” rating in a report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $173.87.

Check Out Our Latest Stock Report on QLYS

Qualys Price Performance The stock’s 50-day moving average price is $176.30 and its 200 day moving average price is $132.51. The firm has a market capitalization of $6.85 billion, a PE ratio of 34.25 and a beta of 0.60. Qualys (NASDAQ:QLYS – Get Free Report) last announced its quarterly 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. The firm had revenue of $182.18 million during the quarter, compared to analyst estimates of $178.57 million. Qualys had a return on equity of 37.52% and a net margin of 29.38%.Qualys’s quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.68 earnings per share. Qualys has set its FY 2026 guidance at 7.740-7.880 EPS and its Q3 2026 guidance at 1.910-1.980 EPS. Equities research analysts forecast that Qualys, Inc. will post 5.84 earnings per share for the current fiscal year.

Insider Transactions at Qualys In other news, CEO Sumedh Thakar sold 3,200 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $170.05, for a total transaction of $544,160.00. Following the transaction, the chief executive officer owned 180,338 shares in the company, valued at approximately $30,666,476.90. This trade represents a 1.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Wendy Pfeiffer sold 500 shares of the firm’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $158.19, for a total transaction of $79,095.00. Following the transaction, the director directly owned 12,210 shares in the company, valued at $1,931,499.90. This trade represents a 3.93% 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. Insiders sold a total of 7,941 shares of company stock worth $1,326,739 over the last quarter. 0.72% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Qualys Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of Qualys during the 2nd quarter worth approximately $792,316,000. Legal & General Group Plc purchased a new position in Qualys in the second quarter worth $197,624,000. Arrowstreet Capital Limited Partnership increased its position in shares of Qualys by 127.0% during the first quarter. Arrowstreet Capital Limited Partnership now owns 832,796 shares of the software maker’s stock worth $73,161,000 after purchasing an additional 465,952 shares in the last quarter. Clark Capital Management Group Inc. lifted its holdings in shares of Qualys by 402.2% during the 4th quarter. Clark Capital Management Group Inc. now owns 363,593 shares of the software maker’s stock valued at $48,322,000 after purchasing an additional 291,192 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Qualys during the 2nd quarter valued at $39,044,000. 99.31% of the stock is owned by hedge funds and other institutional investors.

About Qualys (Get Free Report)

Qualys, Inc provides cloud-based information technology, security and compliance solutions for organizations worldwide. Its platform is designed to help businesses identify, assess and manage security vulnerabilities across their networks, endpoints, cloud environments and web applications.

The company’s offerings include vulnerability management, asset inventory, security and compliance assessment, web application security, endpoint detection and response, and cloud security capabilities.

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Anthropic and OpenAI's warnings about AI agents acting outside their boundaries sent cybersecurity stocks surging, but the companies investors rushed to buy face very different odds of turning that urgency into real contracts and earnings.

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U.S. cybersecurity stocks jumped after warnings about erratic AI behavior. Palo Alto Networks rose 10.0% and Fortinet 8.8% in the September 11–18 trading week. Seven cybersecurity stocks now offer investors distinct ways to profit from protecting AI systems, with 2026 share-price returns ranging from a 13.9% loss to a 125.1% gain. A 125% stock rally does not settle which cybersecurity company is best positioned for 2027. Revenue, products, and the ability to win new AI security contracts tell a more interesting story. UU.S. cybersecurity stocks jumped after Anthropic and OpenAI’s warnings about advanced AI behavior brought a familiar investor question into sharper focus: who gets paid to keep powerful AI agents under control? The Global X Cybersecurity ETF gained 10.7% from September 11 through September 18. Palo Alto Networks (NASDAQ: PANW) | PANW Price Predictionclimbed 10.0%, and Fortinet (NASDAQ: FTNT) gained 8.8%. Investors saw an immediate business opportunity in a risk that many companies are only beginning to understand. The stock gains came before any of these vendors reported a surge in revenue specifically attributable to protecting AI agents.

The catalyst was a series of reports and executive comments about AI systems acting outside expected boundaries in controlled tests. Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman argued for more caution as AI gains the ability to use tools and take actions. President Trump and Nvidia CEO Jensen Huang pushed back against slowing American development. Those tests do not establish that commercial AI systems are routinely escaping their controls. But put an agent in charge of writing code, opening financial records, or operating industrial software, and a mistake or malicious instruction becomes a security problem. Companies will need to set limits on what agents can do, detect violations, and stop a bad action before it spreads.

That prospect is why cybersecurity investors moved so quickly. The seven companies in Table 1 already sell security products to enterprises; each has a different route to an AI protection sale. Palo Alto Networks can test exposures and defend networks and clouds. Fortinet can enforce policies through its firewalls and network products. Cloudflare (NYSE: NET) can protect applications exposed to internet traffic. Tenable (NASDAQ: TENB) and Qualys (NASDAQ: QLYS)identify weaknesses, Rapid7 (NASDAQ: RPD) investigates threats, and Varonis (NASDAQ: VRNS) guards sensitive data. Investors now have to determine which of these companies can turn urgency into contracts and earnings. The stock returns show how differently the market has answered so far.

According to Table 1, quarterly revenue ranges from $180.0 million for Varonis to $3.41 billion for Palo Alto Networks. Fortinet leads in YTD share-price performance at 125.1%, followed by Palo Alto at 113.5%, while Rapid7 is down 13.9%. YTD means the change from the December 31, 2025 close through the September 23, 2026 close, excluding dividends. Revenue covers each company’s entire business, not just AI cybersecurity. Palo Alto’s latest fiscal quarter ended July 31; the other reported quarters ended June 30.

Table 1. Latest Quarter Revenue and 2026 YTD Share Performance

Company Latest reported quarter Revenue (US$ millions) Share price YTD through Sept. 23 Main security business Palo Alto Networks (PANW) May–July 2026 3,410.0 +113.5% Network, cloud, and security operations Fortinet (FTNT) April–June 2026 2,047.9 +125.1% Firewalls, network security, and security operations Cloudflare (NET) April–June 2026 696.1 +78.7% Application and internet-edge security Tenable (TENB) April–June 2026 268.5 +53.8% Vulnerability and exposure management Rapid7 (RPD) April–June 2026 210.9 −13.9% Managed detection and security operations Qualys (QLYS) April–June 2026 182.2 +39.2% Vulnerability and risk management Varonis (VRNS) April–June 2026 180.0 +47.3% Data and AI security The table illustrates why the AI security theme cannot be treated as one trade. Fortinet’s 125.1% advance accompanies a large, profitable network-security business. Palo Alto’s 113.5% rise reflects investor confidence in a broad security platform. Tenable and Varonis have much smaller revenue bases, but their products address specific problems that AI agents make more urgent. Rapid7 shows the other side: enthusiasm for AI products has not been enough to offset weaker financial results and a negative YTD return. A rising market for security will not necessarily lift every stock.

Palo Alto Networks: The Broadest Route to AI Security Spending

Palo Alto Networks has an advantage that a new AI-security startup cannot easily reproduce. It already sells products that protect networks, cloud applications, and security operations to large organizations. A customer can add AI protection and testing through a vendor that is already part of its security budget. In September, Palo Alto introduced Unit 42 Continuous Frontier AI Defense, an annual subscription service that uses advanced AI models alongside its security expertise to keep testing customer systems for weaknesses. That is a clearer potential source of incremental spending than merely describing an existing product as AI-powered.

Its reported scale also stands apart. Revenue for the quarter ended July 31 reached $3.41 billion, up 34% from a year earlier. Next-generation security annual recurring revenue reached $9.10 billion, up 63%. The recurring-revenue number is not AI cybersecurity revenue; it covers a much broader group of products. It does, however, show how large a platform Palo Alto can use to introduce another service. A security team already relying on the company has a simpler purchasing decision than one evaluating an entirely new vendor for every emerging AI threat.

There are limits to the bullish case. Consolidating more security functions in one platform can make the company more valuable to a customer, but it also raises expectations that Palo Alto can integrate products well and deliver results across every area it claims to cover. Its share price has already risen 113.5% this year, so a good product announcement is less likely to impress investors if contracts and earnings do not follow. Palo Alto is a leading company in AI cybersecurity; that does not mean the stock is attractive at every price.

Fortinet: Strong Earnings Behind the AI Story

Fortinet gives investors a second large-scale route into the theme. Its firewalls already sit at the points where companies control traffic entering and leaving networks. As AI systems move into data centers and enterprise operations, customers may want faster inspection, policy enforcement, and protection around the applications agents use. Fortinet’s FortiAI offerings address AI workloads and governance, while its FortiSOC platform uses agentic AI to assist security teams in investigating and responding to threats.

The financial performance is substantial. Fortinet reported $2.05 billion in second-quarter revenue, up about 26% year over year, with GAAP operating income of $689.3 million. That profitability gives Fortinet room to develop security products while selling through an existing customer base. Its product revenue grew sharply in the quarter, but investors should not assign all of that growth to AI security; firewalls and conventional security needs remain major drivers. With the stock up 125.1% YTD, Fortinet has been the strongest performer in Table 1. The test for 2027 is whether new AI offerings enlarge its software and services opportunity rather than leaving the company dependent on the next hardware replacement cycle.

Cloudflare: Protecting the Applications Customers Actually Use

Cloudflare approaches AI from the internet edge, where applications interact with users and automated systems. Its AI Security for Applications offering addresses attacks against AI-powered apps, and its gateway and access tools can help enterprises inspect connections involving AI services and agents. This is a different position from Fortinet’s firewall base. Cloudflare may see malicious requests before they reach an application, making its ability to detect prompt attacks and other abuse commercially relevant as businesses expose more AI services online.

Its second-quarter revenue rose 36% to $696.1 million, the fastest reported revenue growth among the June-quarter companies discussed here. The stock’s 78.7% YTD gain reflects substantial enthusiasm for that growth and for its broader role in AI-era internet traffic. But Cloudflare also reported a GAAP operating loss of $205.7 million in the quarter. Investors therefore have to judge two separate propositions: that the company can continue expanding sales rapidly, and that security products can help turn its reach into stronger earnings. Cloudflare is an attractive challenger in AI application security, but its revenue growth alone does not establish that AI cybersecurity is already a large standalone business for it.

The Specialists: Finding Risk, Investigating Threats, and Protecting Data

Tenable focuses on what a company might expose before an attacker strikes. Its Tenable One platform can identify vulnerable assets and AI use across applications and services. That capability becomes more valuable when an organization cannot tell how many agents it has launched or which data those agents can reach. Tenable reported $268.5 million in second-quarter revenue, up 8.6% year over year, and its stock gained 53.8% YTD. The investment opportunity is to make AI exposure management a reason for more customers to adopt its broader platform; the question is whether that produces faster growth than its current single-digit revenue increase.

Qualys operates in the related business of finding, measuring, and helping customers reduce risk. It is developing an AI-native Risk Operations Center to bring those tasks together and has emphasized both using AI for security and protecting AI systems. Second-quarter revenue was $182.2 million, up 11% year over year, while the stock gained 39.2% YTD. For an investor, Qualys offers a more measured financial story than the biggest AI-security names. It can benefit if organizations increase spending on finding and fixing vulnerabilities, but it must show how much of that demand becomes additional contracts rather than a feature in an existing risk-management subscription.

Rapid7 offers threat detection, investigation, and managed security operations. AI can help its analysts and customers handle alerts that would otherwise consume hours of manual work. Yet its second-quarter revenue of $210.9 million declined 1.5% year over year, and annualized recurring revenue declined 2.0%. The stock is down 13.9% YTD, the only negative return in Table 1. That makes Rapid7 a useful reminder that a company can address the right technology problem while still facing a difficult business transition. Investors looking for a recovery should watch for a return to growth in recurring revenue, rather than assuming a stronger AI message is enough.

Varonis has a different asset: knowledge of where sensitive company data resides and who can access it. As agents search corporate files and take actions on behalf of employees, that information becomes crucial. Varonis has introduced Atlas to protect AI applications and the data behind them, including controls intended to inspect live AI requests. Its second-quarter revenue grew to $180.0 million from $152.2 million a year earlier, and SaaS revenue reached $171.7 million as customers continued moving from older licenses. The stock’s 47.3% YTD gain is smaller than those of the large platform leaders, but Varonis may have a distinct opportunity if protecting data from over-permissioned agents becomes a regular enterprise purchase. Its GAAP operating loss also means growth must eventually produce better profitability.

My Best Company Going Into 2027

Among these seven companies, Palo Alto Networks is my choice as the best-positioned business going into 2027. It has the largest quarterly revenue in Table 1, a sizable recurring-revenue platform, and products across the network, cloud, and security-operations layers where an AI incident could begin or spread. Its new annual testing subscription gives investors a specific product to monitor for adoption. Those advantages create several opportunities to sell to the same customer rather than relying on one narrow type of AI threat. Fortinet is the strongest alternative for investors who prioritize demonstrated operating profitability and the network-security installed base; Cloudflare may have more application-layer growth potential, but also has a larger gap between sales growth and GAAP profitability.

The distinction between best company and best stock purchase matters after Palo Alto’s 113.5% YTD rise. Investors entering now are paying for a great deal of success before the company has isolated AI security revenue in its results. My preference for Palo Alto rests on the breadth of its products and ability to bring new services to existing customers, not on a prediction of the next few months of share-price performance. If Fortinet demonstrates that AI-specific security services are accelerating its recurring sales, or if Palo Alto’s new subscriptions fail to gain traction, the ranking could change. The 2027 decision should follow customer adoption and earnings rather than last week’s headlines.

Investor Takeaway

AI does not need to become unpredictable on a vast scale for cybersecurity spending to increase. Ordinary commercial deployments create practical needs: identify the agent, restrict its permissions, inspect what enters a model, and protect the records it can retrieve. Palo Alto Networks, Fortinet, Cloudflare, Tenable, Rapid7, Qualys, and Varonis sell different parts of that protection. Their YTD returns show that investors have already rewarded some of those positions heavily while remaining skeptical of others.

For investors deciding what to follow into 2027, Palo Alto offers the most complete platform and a new subscription product aimed at continuous security testing. Fortinet backs its network-security opportunity with strong operating income; Cloudflare brings rapid sales growth and application-layer reach. Tenable, Qualys, and Varonis address narrower but potentially valuable security needs, while Rapid7 must first improve its financial trend. Table 1 is the starting point, not the final verdict: the strongest AI cybersecurity investment will be the company that turns a necessary defense into repeatable sales and earnings at a price that leaves shareholders room to benefit.

Contact [email protected] for any questions or corrections.

Sequoia Financial Advisors LLC boosted its position in shares of Qualys, Inc. (NASDAQ:QLYS – Free Report) by 170.8% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 7,527 shares of the software maker’s stock after acquiring an additional 4,747 shares during the period. Sequoia Financial Advisors LLC’s holdings in Qualys were worth $1,035,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Kilter Group LLC purchased a new stake in shares of Qualys during the 2nd quarter worth $31,000. Continuum Advisory LLC purchased a new position in Qualys in the second quarter valued at $33,000. Root Financial Partners LLC increased its holdings in Qualys by 206.2% in the first quarter. Root Financial Partners LLC now owns 297 shares of the software maker’s stock valued at $26,000 after buying an additional 200 shares during the last quarter. Employees Retirement System of Texas acquired a new stake in Qualys in the fourth quarter valued at $43,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in Qualys in the second quarter valued at $51,000. 99.31% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades A number of analysts have issued reports on the company. Northland Securities set a $208.00 price target on Qualys in a report on Wednesday, August 5th. Weiss Ratings raised Qualys from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, August 24th. Wall Street Zen cut Qualys from a “buy” rating to a “hold” rating in a research note on Saturday, September 12th. TD Cowen upped their price target on Qualys from $145.00 to $170.00 and gave the company a “hold” rating in a report on Wednesday, August 5th. Finally, Wedbush lowered shares of Qualys from an “outperform” rating to a “neutral” rating and set a $175.00 price target on the stock. in a research note on Thursday, September 10th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Qualys has a consensus rating of “Hold” and an average target price of $173.87.

Check Out Our Latest Analysis on Qualys Qualys Price Performance NASDAQ QLYS opened at $183.06 on Thursday. Qualys, Inc. has a 1 year low of $74.51 and a 1 year high of $201.54. The company has a market capitalization of $6.33 billion, a PE ratio of 31.67 and a beta of 0.62. The company has a fifty day moving average of $167.79 and a two-hundred day moving average of $124.62.

Qualys (NASDAQ:QLYS – Get Free Report) last posted its earnings results on Tuesday, August 4th. The software maker reported $1.98 EPS for the quarter, topping analysts’ consensus estimates of $1.78 by $0.20. Qualys had a return on equity of 37.52% and a net margin of 29.38%.The business had revenue of $182.18 million for the quarter, compared to analysts’ expectations of $178.57 million. During the same quarter in the previous year, the firm earned $1.68 earnings per share. The business’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. On average, research analysts expect that Qualys, Inc. will post 5.84 earnings per share for the current year.

Insider Buying and Selling In other Qualys news, insider Bruce K. Posey sold 1,000 shares of Qualys stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $155.00, for a total transaction of $155,000.00. Following the transaction, the insider owned 63,571 shares of the company’s stock, valued at $9,853,505. The trade was a 1.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Joo Mi Kim sold 1,627 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $153.04, for a total value of $248,996.08. Following the completion of the sale, the chief financial officer owned 75,743 shares of the company’s stock, valued at approximately $11,591,708.72. This represents a 2.10% 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. Insiders have sold 60,405 shares of company stock worth $8,136,960 in the last quarter. 0.72% of the stock is owned by insiders.

Qualys Company Profile (Free Report)

Qualys, Inc is a cloud-based security and compliance company that helps organizations identify, assess and manage cyber risk across their information technology environments. Its platform is designed to provide visibility into assets, vulnerabilities, configurations and compliance requirements across networks, endpoints, applications and cloud infrastructure.

The company’s offerings include vulnerability management, asset inventory, policy compliance, cloud security, web application security and endpoint detection and response.

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Over the weekend, Anthropic CEO Dario Amodei urged the industry to slow development of its most powerful AI models so safeguards can catch up, drawing support from Elon Musk and OpenAI’s Sam Altman.

The push highlights concerns that increasingly capable AI systems could outpace human oversight, making stronger security, testing, and monitoring more urgent.

Investors worry that slower development could eventually reduce spending on chips, servers, and data centers. However, concerns about future demand are not the same as announced spending cuts, and analysts are skeptical that the safety push will derail infrastructure investment.

For investors, the debate also highlights an opportunity in companies helping businesses use AI more securely.

Fortinet – FTNT: Protecting AI InfrastructureFortinet (FTNT - Free Report) ) helps secure the networks, cloud workloads, and data underpinning AI systems. Its FortiAI offerings address unauthorized access, sensitive-data leakage, and attacks targeting AI applications—important protections as businesses connect more AI tools to their operations. This positions Fortinet to benefit from greater emphasis on securing deployments, rather than simply accelerating them.

The operating momentum is compelling. Second-quarter revenue increased nearly 26% to $2.05 billion, while billings climbed 33% to $2.37 billion and adjusted EPS rose 41% to $0.90. Management also raised its 2026 revenue outlook to $8.02-$8.18 billion, representing roughly 19% growth. These results support the investment case beyond enthusiasm surrounding AI security.

Qualys – QLYS: Finding and Fixing AI Security RisksQualys (QLYS - Free Report) ) identifies vulnerabilities and helps organizations prioritize remediation. Its TotalAI platform extends that role to AI applications by discovering unapproved AI usage, testing models for manipulation, and monitoring risks from development through production. These capabilities directly address the need for better visibility and controls as enterprise AI adoption expands.

The company’s Q2 revenue grew 11% to $182.2 million, while operating cash flow jumped 77% to $59.6 million. Qualys raised its 2026 revenue guidance to $732-$738 million (+9% YoY growth) and lifted its adjusted EPS forecast to $7.74-$7.88 (+9% YoY growth), up from $7.44-$7.65. Improving sales expectations and strong cash generation provide tangible support for its AI-security opportunity.

Bottom LineFortinet and Qualys both sport a Zacks Rank #1 (Strong Buy) and are two ideal stocks to consider as AI safety takes center stage. Their raised outlooks strengthen the case, although neither cybersecurity platform eliminates every risk associated with advanced AI.

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.

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Shares of Qualys, Inc. (NASDAQ:QLYS – Get Free Report) have been given a consensus rating of “Hold” by the seventeen research firms that are presently covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating, three have assigned a buy rating and two have given a strong buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $170.5333.

A number of research analysts have recently issued reports on QLYS shares. Zacks Research upgraded Qualys from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. Wedbush decreased their price objective on shares of Qualys from $155.00 to $125.00 and set an “outperform” rating on the stock in a report on Thursday, May 7th. Canaccord Genuity Group set a $190.00 target price on shares of Qualys in a research note on Wednesday, August 5th. Scotiabank raised their price target on shares of Qualys from $190.00 to $220.00 and gave the company an “outperform” rating in a research note on Wednesday, August 5th. Finally, Truist Financial lifted their price objective on Qualys from $160.00 to $185.00 and gave the stock a “hold” rating in a report on Wednesday, August 5th.

Check Out Our Latest Stock Analysis on QLYS

Qualys Stock Performance QLYS stock opened at $182.21 on Tuesday. Qualys has a one year low of $74.51 and a one year high of $201.54. The firm’s fifty day moving average is $149.61 and its 200 day moving average is $115.51. The firm has a market cap of $6.30 billion, a PE ratio of 31.52 and a beta of 0.60. Qualys (NASDAQ:QLYS – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.98 earnings per share for the quarter, topping analysts’ consensus estimates of $1.78 by $0.20. Qualys had a net margin of 29.38% and a return on equity of 37.52%. The business had revenue of $182.18 million during the quarter, compared to the consensus estimate of $178.57 million. During the same quarter in the prior year, the firm posted $1.68 earnings per share. The company’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. Research analysts predict that Qualys will post 5.85 earnings per share for the current fiscal year.

Insider Transactions at Qualys In related news, insider Bruce K. Posey sold 882 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $158.17, for a total transaction of $139,505.94. Following the completion of the sale, the insider directly owned 62,689 shares in the company, valued at approximately $9,915,519.13. The trade was a 1.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Wendy Pfeiffer sold 500 shares of the stock in a transaction on Monday, July 20th. The shares were sold at an average price of $158.19, for a total value of $79,095.00. Following the completion of the transaction, the director directly owned 12,210 shares of the company’s stock, valued at approximately $1,931,499.90. This represents a 3.93% 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. Over the last three months, insiders sold 71,979 shares of company stock valued at $9,217,993. Insiders own 0.72% of the company’s stock.

Institutional Investors Weigh In On Qualys Several hedge funds and other institutional investors have recently bought and sold shares of the company. Root Financial Partners LLC lifted its position in Qualys by 206.2% in the first quarter. Root Financial Partners LLC now owns 297 shares of the software maker’s stock valued at $26,000 after buying an additional 200 shares during the last quarter. Strive Financial Group LLC acquired a new stake in shares of Qualys during the fourth quarter valued at about $27,000. Northwestern Mutual Wealth Management Co. raised 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 acquiring an additional 143 shares during the period. Kilter Group LLC purchased a new stake in shares of Qualys in the 2nd quarter valued at approximately $31,000. Finally, Employees Retirement System of Texas purchased a new stake in shares of Qualys in the 4th quarter valued at approximately $43,000. 99.31% of the stock is currently owned by institutional investors and hedge funds.

Qualys Company Profile (Get 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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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.

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Looking Beyond CrowdStrike? 3 AI Security Stocks Stand OutQualys NASDAQ: QLYS executives said the company’s second-quarter performance reflected growing customer demand for vulnerability remediation, patch management and Enterprise TruRisk Management, or ETM, while positioning newer products as potential drivers of longer-term growth.

During an investor discussion, President and CEO Sumedh Thakar said the company remains focused on “profitable growth” through product innovation. He pointed to customer interest in remediation capabilities, including Patch Management and Qualys’ Eliminate offering, as a central factor in recent sales conversations.

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3 Under-the-Radar Cybersecurity Stocks With Major Upside PotentialThe operator noted that Qualys reported 16% growth in current calculated billings during the quarter, raised its outlook and generated 77% growth in operating cash flow. Thakar said customers renewing in the second quarter expanded their purchases after gaining additional budget for ETM-related capabilities.

ETM Adoption and Product Mix Thakar said customers are using ETM to prioritize the vulnerabilities they need to address most urgently, while Patch Management and Eliminate support the remediation process. He said renewals and upsells during the quarter were larger than the company had anticipated at the beginning of the period, following customer discussions and increased interest in the company’s tools.

Tenable proves cybersecurity defense is the best Chief Financial Officer Joo Mi Kim said ETM is expected to be Qualys’ primary growth engine in the near term, though she does not expect it to contribute materially to revenue immediately because the offering is still relatively new for customers.

Kim highlighted the net dollar expansion rate among customers that had ETM or CSAM subscriptions a year earlier. That cohort posted an expansion rate of about 107% in both the current and prior quarter, she said.

ETM and CSAM accounted for 12% of total bookings on a last-twelve-month basis, compared with 9% a year earlier. Patch Management represented 9% of total bookings, up from 7% a year earlier. Kim said the company’s overall net dollar expansion rate has improved from 103% to 104% to 105%, with growth also supported by new customer acquisitions. Kim said Qualys aims to return its net dollar expansion rate to above 110%, a level it has achieved previously, as ETM, Patch Management and TotalAI 2.0 gain adoption.

Remediation and AI Security Thakar said Qualys is seeking to move customers from vulnerability management and detection toward a broader workflow that includes prioritization, validation and remediation. He described recent launches including Agent Val, designed to validate vulnerabilities, and Agent Insta, which he said can notify customers within 60 minutes of an advisory being released if they are affected.

The company also introduced TotalAI 2.0, which Thakar said is intended to help enterprises gain visibility into areas such as “Shadow AI.” He said customers are still in the early stages of assessing their AI deployments and determining what cybersecurity spending related to AI may look like.

“If there is a net new spend happening on overall AI and additional AI deployment, then customers will look at figuring out some spend that will be focused on AI security,” Thakar said, adding that it is too early to determine the ultimate scale of that spending.

Risk Operations Center Strategy Thakar also discussed Qualys’ Risk Operations Center, or ROC, concept. He said the framework is designed to bring together risks across endpoints, cloud environments, containers, AI and eventually quantum-related security concerns. The objective is to give security leaders a business-oriented view of risk, including potential financial exposure.

Qualys has opened its platform to ingest risk data from other security tools, Thakar said. That approach could allow customers using third-party scanners or tools for functions such as mobile security or penetration testing to use Qualys for risk normalization, validation and remediation workflows.

The primary buyer for ETM remains the chief information security officer, Thakar said, though remediation projects can involve IT teams, chief technology organizations and, in some instances, chief risk officers or CFOs.

Capital Allocation and Competitive Positioning Kim said Qualys’ guidance implies current billings growth of 9% to 10% for the year, compared with a deceleration from 13% to 9% to 8% in the prior several years. She described the second quarter as a “pivotal moment” for the company but said the pace of further acceleration will depend on execution over the next several years.

On capital allocation, Thakar said Qualys continues to balance share repurchases with potential acquisitions. He said the company is evaluating opportunities that could expand remediation options or add AI security capabilities.

Addressing competition in vulnerability management, Thakar argued that customers want fewer findings and stronger remediation rather than additional exposure dashboards. He said Qualys’ patching experience, reliability scoring and autonomous remediation capabilities differentiate the platform from vendors that are only beginning to add patch management functionality.

About Qualys (NASDAQ:QLYS)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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Qualys delivered a strong quarter with 16% current billings growth, 11% revenue growth, and improved net dollar expansion to 105%. Management raised full-year revenue guidance, citing momentum from ETM and CSAM adoption, but acknowledges growth is not yet at breakout levels. Profitability remains a standout, with 46% adjusted EBITDA margins and $703 million in cash, supporting continued investment and capital returns.

Shares of cybersecurity company Qualys (QLYS +13.78%) looked more than secure on Hump Day, thanks to strong second-quarter results. With that blustery tailwind at its back, the highly specialized tech stock rose by nearly 14% in price that trading session.

Double-digit improvements Qualys posted those quarterly results well before market open, revealing that it booked revenue of nearly $182.2 million for an 11% year-over-year gain. Another double-digit increase was recorded in net income not under generally accepted accounting principles (non-GAAP, or adjusted); this flew 13% higher to more than $69 million ($1.98 per share).

Image source: Getty Images.

Those two line items comfortably exceeded the average analyst estimates. Collectively, prognosticators tracking Qualys stock were modeling revenue under $179 million and adjusted earnings per share (EPS) of $1.79.

The company chalked up its growth-packed quarter to factors including strong, sustained demand for risk management solutions and the appeal of its artificial intelligence (AI)-enhanced offerings.

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A beat on bottom-line guidance Qualys proffered guidance for both its current (third) quarter and the entirety of 2026. For the year, it's expected to earn $732 million to $738 million. This would result in growth of at least 9% over the 2025 figure, and it beats the consensus analyst estimate of slightly over $726 million. Adjusted EPS should be $7.74 to $7.88; the average pundit expectation is $7.86.

I saw much to like in this earnings report, and precious few areas of concern. Qualys is an old pro at the cybersecurity game, which has nevertheless enthusiastically (and cleverly) embraced cutting-edge technology like AI. It's also selling into a market that rightly considers robust security solutions essential. I think there's more growth in store for Qualys.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of disruptive cloud-based IT, security and compliance solutions, today announced that management will participate in a fireside chat and host one-on-one meetings with interested investors at the following conference:

Canaccord Genuity's 46th Annual Growth Conference. Sumedh Thakar, president and CEO, and Joo Mi Kim, CFO, will host one-on-one meetings and participate in a fireside chat in Boston, Massachusetts on Tuesday, August 11, 2026 at 10:00am ET. At the time of the fireside chat, a live webcast will be accessible from the investor relations page of the Qualys website at https://investor.qualys.com/events-presentations. Following the event, a replay will be made available at the same location.

About Qualys

Qualys, Inc. (NASDAQ: QLYS) is a pioneer and 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 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 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.

Investor Contact

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

SOURCE Qualys, Inc.

3 Under-the-Radar Cybersecurity Stocks With Major Upside PotentialQualys NASDAQ: QLYS reported second-quarter 2026 revenue growth of 11% to $182.2 million and raised its full-year outlook, citing improved upsell execution, growing channel contribution and customer interest in its enterprise risk-management platform and automated remediation capabilities.

Chief Executive Officer Sumedh Thakar said the company is positioning its Enterprise TruRisk Management, or ETM, platform as an “AI-native Risk Operations Center” designed to help organizations detect vulnerabilities, validate whether they are exploitable, quantify risk and remediate exposures across multi-vendor environments.

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Tenable proves cybersecurity defense is the best Thakar said AI has compressed the time between vulnerability disclosure and potential exploitation, increasing pressure on security teams to reduce reliance on manual processes and disconnected tools. He argued that organizations need to move beyond theoretical risk scores and toward automated remediation workflows.

New AI Security and AI Infrastructure Offerings At Black Hat, Qualys plans to showcase new capabilities spanning AI for security and security for AI. The company introduced InstaScan, powered by Agent Insta, which is intended to identify exposure findings within minutes of a vulnerability disclosure without requiring a new scan cycle. According to Thakar, the capability uses asset inventory, software-path and threat-intelligence data already collected by Qualys sensors.

Zscaler: A Leader in Cybersecurity Soars with Strong EarningsInstaScan is designed to feed findings into TruConfirm and Agent Val, which the company said validate exploitability and prioritize the vulnerabilities that require action. Qualys also highlighted Agent Sarah, which is intended to coordinate remediation waves, prioritize risk and revalidate that an exposure has been closed.

Thakar said the company’s autonomous remediation workflow can determine whether to deploy a patch, stage a control rollout or use a compensating control, depending on the asset and operational risk. In live benchmarking, he said the platform reduced the exposure window from 21 days to minutes and automatically patched 60% of vulnerabilities. He also said Qualys has deployed 150 million patches during the past 12 months, including 40 million deployed autonomously.

For security of AI systems, Qualys announced TotalAI 2.0, which it said is designed to give organizations visibility into AI activity across employees, workloads, code and runtime environments. The offering includes sensors intended to identify shadow AI usage and production AI services across hybrid and multi-cloud environments, as well as posture-management coverage for SaaS platforms including Anthropic and OpenAI.

Customer Expansion and QFlex Rollout Thakar said customers spending $500,000 or more with Qualys increased 8% from a year earlier to 229. He described a low seven-figure annual QFlex upsell with an existing Global 300 customer that adopted VMDR, ETM, TruRisk Eliminate, TotalAI and other modules. The customer was seeking to manage a data-intensive environment spanning on-premises systems, multiple clouds and growing large-language-model deployments, he said.

The company also cited a six-figure QFlex upsell with a European healthcare customer that adopted VMDR, ETM and TruRisk Eliminate. According to Thakar, the customer had relied on a managed service provider for much of its vulnerability-management program and sought more direct visibility and automation.

Qualys has expanded the availability of QFlex to enterprise customers. Chief Financial Officer Joo Mi Kim described QFlex as a premium offering that gives customers flexibility to adopt and shift among multiple Qualys solutions. She said it currently applies to a small percentage of customers and has not yet materially affected reported financial metrics, but the company believes it can support broader net dollar expansion over time.

Financial Results and Updated Outlook Kim said channel partners accounted for 54% of second-quarter revenue, compared with 49% a year earlier. Revenue from channel partners grew 22%, while direct revenue was largely unchanged from the second quarter of 2025. Revenue outside the U.S. increased 15%, ahead of 8% domestic growth, with the U.S. representing 55% of revenue and international markets representing 45%.

Net dollar expansion rate improved to 105%, from 104% in the prior quarter. Customers with prior-year ETM or CSAM purchases had a 107% net dollar expansion rate, unchanged sequentially. ETM and CSAM represented 12% of total trailing-12-month bookings and 14% of new bookings, compared with 9% and 10%, respectively, a year earlier. Patch management represented 9% of total trailing-12-month bookings and 16% of new bookings. Adjusted EBITDA was $83.8 million, or a 46% margin, compared with a 45% margin a year earlier. Non-GAAP diluted earnings per share were $1.98, while free cash flow was $55.9 million, representing a 31% margin. Operating expenses increased 8% to $73.2 million, with sales and marketing expense rising 14%. Kim said the company plans further sales and marketing investment in the second half, supported by a partner-led go-to-market approach and increased headcount.

Qualys spent $76.8 million to repurchase 797,000 shares during the quarter and had $229.8 million remaining under its repurchase authorization at quarter-end.

For full-year 2026, Qualys increased its revenue outlook to a range of $732 million to $738 million, representing growth of 9% to 10%, from prior guidance of $721 million to $727 million. The company forecast third-quarter revenue of $185.5 million to $187.5 million, also representing 9% to 10% growth.

Qualys now expects full-year non-GAAP EPS of $7.74 to $7.88, up from its prior outlook of $7.44 to $7.65. It forecast third-quarter EPS of $1.91 to $1.98. The company expects full-year EBITDA margin in the mid-40% range, operating expense growth in the low teens and free-cash-flow margin in the low 40% range.

Management said strong second-quarter billings reflected a smaller group of customers already advanced in ETM and Risk Operations Center discussions. Kim said the company expects second-half current billings growth of 7% to 8%, as it has not yet seen material changes in sales cycles among customers renewing later in the year.

Thakar also pointed to a developing federal opportunity, saying Qualys’ FedRAMP High platform supports both detection and patching. While federal revenue is not currently a large part of the business, he said new government requirements around faster detection, exploit validation and remediation are creating additional customer conversations.

About Qualys (NASDAQ:QLYS)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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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.

Qualys Enterprise TruRisk Management's (ETM) "scanless scanning," powered by Agent Insta, continuously correlates new advisories with asset, exposure and threat telemetry from Qualys and third-party sources detecting vulnerabilities at AI speed

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT,security and compliance solutions, today announced InstaScan, powered by Agent Insta, a new capability within Qualys Enterprise TruRisk Management (ETM) that closes the gap between vulnerability disclosure and detection by transforming the asset telemetry organizations already collect into continuous exposure visibility.

InstaScan, powered by Agent Insta is a new capability within Qualys Enterprise TruRisk Management (ETM) The industry's detection clock broke in 2025. In the first seven months of 2026, 46,048 CVEs were published nearly matching the total for all of 2025. For the first time, Verizon's 2026 DBIR named vulnerability exploitation the leading breach entry point, accounting for 31% of breaches, and found that AI is compressing attacker timelines from months to hours. Qualys research shows the defender side: among KEV-linked vulnerability instances ultimately remediated, median detection-to-closure held at nine days, even as KEV-linked workload grew 78% year over year. Defenders' nine days now meet attackers' hours, while the queue grows faster than conventional, human-led programs can drain it. Waiting for the next scan window is no longer a delay. It is lost response time.

"Qualys InstaScan moves threat intelligence from telling you what already happened to detect exposure the moment it emerges; that's true proactive detection," said Theresa Lanowitz, principal cybersecurity analyst, Omdia. "As threat intelligence becomes a core variable in how organizations quantify risk, InstaScan gives Qualys a direct way to feed that signal into the platform."

InstaScan introduces scanless scanning, an innovative, autonomous vulnerability management capability within Qualys ETM. Powered by Agent Insta, a cyber risk agent leveraging AI to continuously monitor newly published vendor security advisories and threat intelligence from Qualys and trusted third-party sources, Agent Insta correlates emerging vulnerabilities with an organization's live inventory, telemetry and threat intelligence. It automatically identifies impacted assets and surfaces trusted detections within minutes.

Across its initial set of supported technologies, InstaScan covers 90 percent of detections within minutes. InstaScan powered by Agent Insta helps to:

Detect at the speed of disclosure — New vulnerabilities become visible within minutes of advisory publication which closes the exposure window before attackers can exploit them. Outpace the AI-accelerated threat landscape — Detection is triggered by new advisories and asset changes rather than fixed scan schedules, keeping exposure data continuously current and enabling remediation to begin while legacy scan windows are still waiting to open. Power autonomous defense — AI-normalized, confidence-scored detections provide trusted signals that downstream prioritization, validation and remediation workflows can immediately act on, accelerating the path from vulnerability disclosure to risk reduction. "The speed of vulnerability exploitation has fundamentally changed," said Sumedh Thakar, president and CEO of Qualys. "A slow vulnerability management program is now the biggest vulnerability an organization has. We're entering a new era of vulnerability, one where detection is continuous - driven by live intelligence instead of scan cycles. Built on the Qualys platform, InstaScan helps organizations identify and reduce risk the moment new vulnerabilities are disclosed."

InstaScan is the intelligence layer that powers continuous vulnerability detection across the Qualys platform. It correlates newly published advisories with the platform's existing inventory, exposure data and threat telemetry to deliver confidence-scored detections within minutes of disclosure. As the first step in a broader agent-driven detection-to-remediation workflow, InstaScan provides TruRisk with intelligence for more accurate prioritization, while giving validation and remediation workflows a trusted signal to act immediately. The result is a faster path from vulnerability disclosure to risk reduction.

Availability            
InstaScan is now available within Qualys ETM. Visit Qualys at Black Hat USA booth 2333 to experience InstaScan in action. Register for our webinar at brighttalk.com/webcast/11673/673558.

Read our blog post, Agent Insta: Closing the Detection Gap in Exposure Management at Machine Speed    Watch the InstaScan video  Register for the InstaScan scanless scanning webinar Book a meeting with Qualys at Black Hat Learn more about Qualys' ETM at qualys.com/etm Follow Qualys on LinkedIn, Instagram and X 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 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.

Posted by Defense World Staff on Jul 28th, 2026

American Capital Management Inc. trimmed its stake in shares of Qualys, Inc. (NASDAQ:QLYS – Free Report) by 79.3% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 83,752 shares of the software maker’s stock after selling 320,367 shares during the quarter. American Capital Management Inc. owned 0.24% of Qualys worth $7,358,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of QLYS. Strive Financial Group LLC bought a new position in shares of Qualys in the fourth quarter worth $27,000. Northwestern Mutual Wealth Management Co. boosted its stake in Qualys by 204.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 213 shares of the software maker’s stock valued at $28,000 after buying an additional 143 shares during the period. Allworth Financial LP grew its position in Qualys by 86.8% during the third quarter. Allworth Financial LP now owns 284 shares of the software maker’s stock worth $38,000 after buying an additional 132 shares in the last quarter. Root Financial Partners LLC increased its stake in Qualys by 206.2% in the 1st quarter. Root Financial Partners LLC now owns 297 shares of the software maker’s stock worth $26,000 after acquiring an additional 200 shares during the last quarter. Finally, Employees Retirement System of Texas bought a new position in Qualys in the 4th quarter worth about $43,000. Institutional investors own 99.31% of the company’s stock.

Wall Street Analyst Weigh In A number of equities research analysts recently weighed in on QLYS shares. Morgan Stanley set a $96.00 target price on shares of Qualys in a research note on Wednesday, May 6th. William Blair cut shares of Qualys from an “outperform” rating to a “market perform” rating in a research note on Tuesday, April 28th. JPMorgan Chase & Co. increased their price target on shares of Qualys from $139.00 to $150.00 and gave the stock a “neutral” rating in a report on Monday. Weiss Ratings upgraded shares of Qualys from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 16th. Finally, Scotiabank raised Qualys from a “sector perform” rating to a “sector outperform” rating and increased their target price for the company from $100.00 to $190.00 in a research note on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Qualys presently has a consensus rating of “Hold” and an average target price of $142.53.

Get Our Latest Report on QLYS

Qualys Stock Performance Shares of Qualys stock opened at $134.79 on Tuesday. The company’s 50 day moving average price is $125.87 and its 200-day moving average price is $110.48. Qualys, Inc. has a 52-week low of $74.51 and a 52-week high of $167.86. The stock has a market capitalization of $4.75 billion, a price-to-earnings ratio of 24.20 and a beta of 0.61.

Qualys (NASDAQ:QLYS – Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The software maker reported $1.95 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.14. The business had revenue of $175.64 million for the quarter, compared to analysts’ expectations of $173.63 million. Qualys had a net margin of 29.41% and a return on equity of 37.15%. The firm’s revenue for the quarter was up 9.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.67 earnings per share. Qualys has set its FY 2026 guidance at 7.440-7.650 EPS and its Q2 2026 guidance at 1.730-1.800 EPS. As a group, equities research analysts forecast that Qualys, Inc. will post 5.47 earnings per share for the current fiscal year.

Insider Activity In other Qualys news, CFO Joo Mi Kim sold 965 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $143.44, for a total value of $138,419.60. Following the completion of the sale, the chief financial officer directly owned 81,215 shares in the company, valued at $11,649,479.60. This trade represents a 1.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sumedh S. Thakar sold 30,000 shares of Qualys stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $135.00, for a total value of $4,050,000.00. Following the sale, the chief executive officer directly owned 196,686 shares in the company, valued at approximately $26,552,610. The trade was a 13.23% decrease in their ownership of the stock. 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 three months, insiders have sold 73,846 shares of company stock worth $9,239,073. 0.72% of the stock is owned by company insiders.

About Qualys (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 AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight 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 Jul 27th, 2026

Fifth Third Bancorp grew its position in shares of Qualys, Inc. (NASDAQ:QLYS – Free Report) by 2,285.7% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 10,664 shares of the software maker’s stock after buying an additional 10,217 shares during the quarter. Fifth Third Bancorp’s holdings in Qualys were worth $937,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently bought and sold shares of the company. Envestnet Portfolio Solutions Inc. grew its stake in shares of Qualys by 4.3% in the fourth quarter. Envestnet Portfolio Solutions Inc. now owns 1,985 shares of the software maker’s stock worth $264,000 after acquiring an additional 81 shares during the period. Quadrant Capital Group LLC lifted its position in Qualys by 1.8% during the third quarter. Quadrant Capital Group LLC now owns 5,027 shares of the software maker’s stock valued at $665,000 after purchasing an additional 88 shares in the last quarter. Captrust Financial Advisors lifted its position in shares of Qualys by 4.6% during the 2nd quarter. Captrust Financial Advisors now owns 2,038 shares of the software maker’s stock valued at $291,000 after buying an additional 90 shares in the last quarter. Covestor Ltd lifted its holdings in Qualys by 9.1% during the fourth quarter. Covestor Ltd now owns 1,178 shares of the software maker’s stock valued at $156,000 after purchasing an additional 98 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Qualys by 8.9% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,231 shares of the software maker’s stock worth $164,000 after buying an additional 101 shares during the period. 99.31% of the stock is currently owned by institutional investors.

Qualys Stock Performance NASDAQ QLYS opened at $137.48 on Monday. The stock has a market cap of $4.84 billion, a PE ratio of 24.68 and a beta of 0.61. Qualys, Inc. has a 12 month low of $74.51 and a 12 month high of $167.86. The company’s 50-day moving average price is $125.13 and its 200-day moving average price is $110.44.

Qualys (NASDAQ:QLYS – Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The software maker reported $1.95 earnings per share for the quarter, beating analysts’ consensus estimates of $1.81 by $0.14. The company had revenue of $175.64 million during the quarter, compared to analyst estimates of $173.63 million. Qualys had a net margin of 29.41% and a return on equity of 37.15%. The firm’s revenue for the quarter was up 9.8% on a year-over-year basis. During the same quarter last year, the business posted $1.67 EPS. Qualys has set its FY 2026 guidance at 7.440-7.650 EPS and its Q2 2026 guidance at 1.730-1.800 EPS. As a group, sell-side analysts forecast that Qualys, Inc. will post 5.47 earnings per share for the current year.

Wall Street Analysts Forecast Growth QLYS has been the subject of several recent analyst reports. Wedbush dropped their price target on Qualys from $155.00 to $125.00 and set an “outperform” rating for the company in a research note on Thursday, May 7th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $145.00 price target on shares of Qualys in a research report on Thursday, July 16th. Weiss Ratings raised Qualys from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 16th. Scotiabank upgraded Qualys from a “sector perform” rating to a “sector outperform” rating and increased their price target for the company from $100.00 to $190.00 in a report on Monday, July 6th. Finally, Piper Sandler lowered their price target on Qualys from $135.00 to $100.00 and set a “neutral” rating for the company in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $141.80.

Get Our Latest Stock Analysis on QLYS

Insider Activity In other Qualys news, CEO Sumedh S. Thakar sold 30,000 shares of the firm’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $135.00, for a total transaction of $4,050,000.00. Following the transaction, the chief executive officer directly owned 196,686 shares in the company, valued at $26,552,610. This trade represents a 13.23% decrease in their position. The transaction 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, Director Thomas Berquist sold 939 shares of Qualys stock in a transaction on Friday, June 12th. The shares were sold at an average price of $110.75, for a total value of $103,994.25. Following the sale, the director directly owned 6,781 shares of the company’s stock, valued at approximately $750,995.75. This trade represents a 12.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 73,846 shares of company stock valued at $9,239,073. Insiders own 0.72% of the company’s stock.

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.

See Also Five stocks we like better than Qualys RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit 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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Qualys is rated Buy, with a 13%+ upside expected over the next year, driven by surging vulnerability management demand. Recent analyst upgrades, especially from JPMorgan, and industry tailwinds have fueled a significant rally in QLYS shares. QLYS benefits from AI-driven vulnerability detection, new product launches, and robust management guidance for FY2026.

Qualys (QLYS) earns a Buy rating for its strong profitability, robust cash flow, and reasonable valuation despite modest revenue growth. QLYS delivers high EBITDA and free cash flow margins—mid-40s and low-40s, respectively—while maintaining positive EPS revisions and ongoing share buybacks. AI-driven vulnerability discovery and autonomous remediation provide credible demand tailwinds, though their financial impact is not yet visible in guidance.

Qualys faces industry disruption from Anthropic's Mythos Preview AI cybersecurity tool, leading to a sharp share price decline. Despite slowing revenue growth and macro headwinds, QLYS maintains strong fundamentals, robust cash flow, and a debt-free balance sheet. I lower my rating from "strong buy" to "buy," reflecting both competitive threats and modest expected earnings growth.

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of disruptive cloud-based IT, security and compliance solutions, today announced that the company will report its financial results for the first quarter 2026 after the market closes on Tuesday, May 5, 2026.

Qualys will host a conference call and live webcast to discuss its first quarter 2026 financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, May 5, 2026. To access the conference call, 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.

About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a pioneer and 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 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 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 and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies. 

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

SOURCE Qualys, Inc.

SAN JOSE, Calif.--(BUSINESS WIRE)-- #ai--Stellar Cyber today announced the appointment of Mayuresh Ektare as Senior Vice President of Product Management, bringing more than 20 years of experience building category-defining AI-native cybersecurity platforms to help address what many see as the industry's next critical failure point: the Security Operations Center (SOC). Ektare joins Stellar Cyber from Qualys, where he led the shift from vulnerability management to an Exposure & Risk platform power.

Q1 Revenue Growth of 10% Year-Over-Year
Raises 2026 Revenue Guidance to $721.0-$727.0 million

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the first quarter ended March 31, 2026. For the quarter, the Company reported revenues of $175.6 million, net income under United States Generally Accepted Accounting Principles ("GAAP") of $50.6 million, non-GAAP net income of $69.6 million, Adjusted EBITDA of $83.3 million, GAAP net income per diluted share of $1.42, and non-GAAP net income per diluted share of $1.95.

"We are pioneering a new category in pre-breach risk management by bringing autonomous exploit validation, risk quantification, and remediation together within a single AI-driven risk fabric that redefines how enterprises operationalize cyber risk," said Sumedh Thakar, Qualys' president and CEO. "This quarter's solid results in part reflect the tangible impact of our AI-native Risk Operations Center and growing adoption of our Enterprise TruRisk Management solution, continuous innovation, expanding partner ecosystem, and promising early engagement from QFlex. Powered by a differentiated closed-loop system of record, a growing marketplace of agentic AI solutions, and leading model integrations, we are unifying cyber risk workflows, reducing operational complexity, and addressing security's toughest challenges at the speed of modern attacks. This reinforces our confidence in delivering durable, long-term profitable growth through the innovation and financial discipline that have long defined Qualys."

First Quarter 2026 Financial Highlights

Revenues: Revenues for the first quarter of 2026 increased by 10% to $175.6 million compared to $159.9 million for the same quarter in 2025.

Gross Profit: GAAP gross profit for the first quarter of 2026 increased by 11% to $145.6 million compared to $131.0 million for the same quarter in 2025. GAAP gross margin was 83% for the first quarter of 2026 compared to 82% for the same quarter in 2025. Non-GAAP gross profit for the first quarter of 2026 increased by 11% to $148.3 million compared to $133.7 million for the same quarter in 2025. Non-GAAP gross margin was 84% for both the first quarter of 2026 and for the same quarter in 2025.

Operating Income: GAAP operating income for the first quarter of 2026 increased by 18% to $60.9 million compared to $51.8 million for the same quarter in 2025. As a percentage of revenues, GAAP operating income was 35% for the first quarter of 2026 compared to 32% for the same quarter in 2025. Non-GAAP operating income for the first quarter of 2026 increased by 14% to $80.9 million compared to $71.2 million for the same quarter in 2025. As a percentage of revenues, non-GAAP operating income was 46% for the first quarter of 2026 compared to 45% for the same quarter in 2025.

Net Income: GAAP net income for the first quarter of 2026 increased by 7% to $50.6 million, or $1.42 per diluted share, compared to $47.5 million, or $1.29 per diluted share, for the same quarter in 2025. As a percentage of revenues, GAAP net income was 29% for the first quarter of 2026 compared to 30% for the same quarter in 2025. Non-GAAP net income for the first quarter of 2026 increased by 13% to $69.6 million, or $1.95 per diluted share, compared to $61.4 million, or $1.67 per diluted share, for the same quarter in 2025. As a percentage of revenues, non-GAAP net income was 40% for the first quarter of 2026 compared to 38% for the same quarter in 2025.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2026 increased by 11% to $83.3 million compared to $74.8 million for the same quarter in 2025. As a percentage of revenues, Adjusted EBITDA was 47% for both the first quarter of 2026 and for the same quarter in 2025.

Operating Cash Flow: Operating cash flow for the first quarter of 2026 decreased by 13% to $95.3 million compared to $109.6 million for the same quarter in 2025. As a percentage of revenues, operating cash flow was 54% for the first quarter of 2026 compared to 69% for the same quarter in 2025.

First Quarter 2026 Business Highlights

Qualys introduced Agent Val, powered by TruConfirm, an agentic AI-led workflow in our Enterprise TruRisk Management solution. Agent Val identifies high-risk exposures, validates real exploitability, and drives prioritized remediation to help teams shift from chasing volume to reducing verified risk. TotalCloud continued to garner top industry recognition. It was named a winner in the SC Awards (Best Cloud Security Management Solution), recognized by Forrester as one of only three Leaders in The Forrester Wave™: Cloud Native Application Protection Platform (CNAPP), Q1 2026, and positioned as a Leader in the 2026 GigaOm Radar report for Cloud Identity Entitlement Management (CIEM). Qualys Threat Research Unit (TRU) unveiled its latest research report, The Broken Physics of Remediation, analyzing over one billion CISA KEV remediation records across over 10,000 organizations, examining why approaches built on Mean-Time-To-Remediation and prioritization are no longer sufficient, and introducing more accurate ways to measure and manage risk. To help partners scale the ROC, Qualys introduced the Risk Operations Center (mROC) portal, providing partners with a unified view of risk across each customer's entire attack surface, empowering them to act on exposures that drive real risk and prove measurable risk reduction through built-in intelligence, validation, and closed-loop execution. Financial Performance Outlook

Based on information as of today, May 5, 2026, Qualys is issuing the following financial guidance for the second 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.

Second Quarter 2026 Guidance: Management expects revenues for the second quarter of 2026 to be in the range of $177.5 million to $179.5 million, representing 8% to 9% growth over the same quarter in 2025. GAAP net income per diluted share is expected to be in the range of $1.24 to $1.31, which assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is expected to be in the range of $1.73 to $1.80, which assumes a non-GAAP effective income tax rate of 20%. Second 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 $721.0 million to $727.0 million, representing 8% to 9% growth over 2025. This compares to the previous guidance range of $717.0 million to $725.0 million. GAAP net income per diluted share is now expected to be in the range of $5.40 to $5.61, up from the previous guidance range of $5.20 to $5.48. 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 $7.44 to $7.65, up from the previous guidance range of $7.17 to $7.45. This assumes a non-GAAP effective income tax rate of 20%. Full year 2026 net income per diluted share estimates are based on approximately 34.5 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 second quarter and full year 2026 is likely to have a significant impact on the Company's GAAP net income per diluted share in the second 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 first quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, May 5, 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, acquisitions, collaborations and joint solutions, and their impact upon our long-term growth; 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; statements regarding our share repurchase; our guidance for revenues, GAAP EPS and non-GAAP EPS for the second 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 second 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
March 31,

2026

2025

Revenues

$         175,638

$         159,899

Cost of revenues (1)

29,990

28,926

Gross profit

145,648

130,973

Operating expenses:

Research and development (1)

29,020

29,154

Sales and marketing (1)

38,760

32,660

General and administrative (1)

16,983

17,404

Total operating expenses

84,763

79,218

Income from operations

60,885

51,755

Other income (expense), net:

Interest income

6,176

6,235

Other income (expense), net

(2,071)

317

Total other income, net

4,105

6,552

Income before income taxes

64,990

58,307

Income tax provision

14,347

10,773

Net income

$           50,643

$           47,534

Net income per share:

Basic

$               1.42

$               1.30

Diluted

$               1.42

$               1.29

Weighted average shares used in computing net income per share:

Basic

35,608

36,466

Diluted

35,679

36,784

(1) Includes stock-based compensation as follows:

Cost of revenues

$             2,061

$             2,090

Research and development

4,608

5,104

Sales and marketing

4,189

3,200

General and administrative

8,482

8,426

Total stock-based compensation, net of amounts capitalized

$           19,340

$           18,820

Qualys, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)

March 31,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$         279,468

$         250,258

Short-term marketable securities

191,879

195,681

Accounts receivable, net

134,877

170,991

Prepaid expenses and other current assets

50,367

40,686

Total current assets

656,591

657,616

Long-term marketable securities

258,002

250,868

Property and equipment, net

21,981

23,166

Operating leases - right of use asset

46,651

46,001

Deferred tax assets, net

72,811

74,518

Intangible assets, net

3,615

4,255

Goodwill

7,447

7,447

Noncurrent restricted cash

1,200

1,200

Other noncurrent assets

26,338

30,010

Total assets

$      1,094,636

$      1,095,081

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$             2,298

$             1,202

Accrued liabilities

55,438

57,694

Deferred revenues, current

393,800

401,127

Operating lease liabilities, current

7,622

7,315

Total current liabilities

459,158

467,338

Deferred revenues, noncurrent

15,428

16,285

Operating lease liabilities, noncurrent

44,607

44,959

Other noncurrent liabilities

5,570

5,346

Total liabilities

524,763

533,928

Stockholders' equity:

Common stock

35

36

Additional paid-in capital

741,918

731,788

Accumulated other comprehensive loss

(4,812)

(4,012)

Accumulated deficit

(167,268)

(166,659)

Total stockholders' equity

569,873

561,153

Total liabilities and stockholders' equity

$      1,094,636

$      1,095,081

Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

Three Months Ended
March 31,

2026

2025

Cash flow from operating activities:

Net income

$           50,643

$           47,534

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

Depreciation and amortization expense

3,043

4,177

Provision for credit losses

173

206

Impairment of property and equipment

624

—

Impairment of non-marketable securities

1,967

—

Stock-based compensation, net of amounts capitalized

19,340

18,820

Accretion of discount on marketable securities, net

(524)

(1,107)

Deferred income taxes

1,841

(4,360)

Changes in operating assets and liabilities:

Accounts receivable

35,941

42,782

Prepaid expenses and other assets

(7,520)

162

Accounts payable

834

(66)

Accrued liabilities and other noncurrent liabilities

(2,884)

8,265

Deferred revenues

(8,184)

(6,825)

Net cash provided by operating activities

95,294

109,588

Cash flow from investing activities:

Purchases of marketable securities

(78,469)

(55,525)

Sales and maturities of marketable securities

73,760

50,532

Purchases of property and equipment

(1,667)

(2,038)

Net cash used in investing activities

(6,376)

(7,031)

Cash flow from financing activities:

Repurchase of common stock

(53,509)

(39,653)

Proceeds from exercise of stock options

325

2,599

Payments for taxes related to net share settlement of equity awards

(10,375)

(10,831)

Proceeds from issuance of common stock through employee stock purchase plan

3,851

3,817

Net cash used in financing activities

(59,708)

(44,068)

Net increase in cash, cash equivalents and restricted cash

29,210

58,489

Cash, cash equivalents and restricted cash at beginning of period

251,458

233,382

Cash, cash equivalents and restricted cash at end of period

$         280,668

$         291,871

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

ADJUSTED EBITDA

(unaudited)

(in thousands, except percentages)

Three Months Ended
March 31,

2026

2025

Net income

$        50,643

$        47,534

Net income as a percentage of revenues

29 %

30 %

Depreciation and amortization of property and equipment

2,403

3,537

Amortization of intangible assets

640

640

Income tax provision

14,347

10,773

Stock-based compensation

19,340

18,820

Total other income, net

(4,105)

(6,552)

Adjusted EBITDA

$        83,268

$        74,752

Adjusted EBITDA as a percentage of revenues

47 %

47 %

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

(unaudited)

(in thousands, except per share data)

Three Months Ended
March 31,

2026

2025

GAAP Cost of revenues

$           29,990

$           28,926

Less: Stock-based compensation

(2,061)

(2,090)

Less: Amortization of intangible assets

(640)

(640)

Non-GAAP Cost of revenues

$           27,289

$           26,196

GAAP Gross profit

$         145,648

$         130,973

Plus: Stock-based compensation

2,061

2,090

Plus: Amortization of intangible assets

640

640

Non-GAAP Gross Profit

$         148,349

$         133,703

GAAP Research and development

$           29,020

$           29,154

Less: Stock-based compensation

(4,608)

(5,104)

Non-GAAP Research and development

$           24,412

$           24,050

GAAP Sales and marketing

$           38,760

$           32,660

Less: Stock-based compensation

(4,189)

(3,200)

Non-GAAP Sales and marketing

$           34,571

$           29,460

GAAP General and administrative

$           16,983

$           17,404

Less: Stock-based compensation

(8,482)

(8,426)

Non-GAAP General and administrative

$             8,501

$             8,978

GAAP Operating expenses

$           84,763

$           79,218

Less: Stock-based compensation

(17,279)

(16,730)

Non-GAAP Operating expenses

$           67,484

$           62,488

GAAP Income from operations

$           60,885

$           51,755

Plus: Stock-based compensation

19,340

18,820

Plus: Amortization of intangible assets

640

640

Non-GAAP Income from operations

$           80,865

$           71,215

GAAP Net income

$           50,643

$           47,534

Plus: Stock-based compensation

19,340

18,820

Plus: Amortization of intangible assets

640

640

Plus: Impairment of non-marketable securities

1,967

—

Less: Tax adjustment

(3,040)

(5,547)

Non-GAAP Net income

$           69,550

$           61,447

GAAP Net income per share:

Basic

$               1.42

$               1.30

Diluted

$               1.42

$               1.29

Non-GAAP Net income per share:

Basic

$               1.95

$               1.69

Diluted

$               1.95

$               1.67

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

Basic

35,608

36,466

Diluted

35,679

36,784

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

FREE CASH FLOWS

(unaudited)

(in thousands)

Three Months Ended
March 31,

2026

2025

GAAP Cash flows provided by operating activities

$           95,294

$         109,588

Less:

Purchases of property and equipment, net of proceeds from disposal

(1,667)

(2,038)

Non-GAAP Free cash flows

$           93,627

$         107,550

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

CALCULATED CURRENT BILLINGS

(unaudited)

(in thousands, except percentages)

Three Months Ended
March 31,

2026

2025

GAAP Revenue

$      175,638

$      159,899

GAAP Revenue growth compared to same quarter of prior year

10 %

10 %

Plus: Current deferred revenue at March 31

393,800

366,824

Less: Current deferred revenue at December 31

(401,127)

(371,457)

Non-GAAP Calculated current billings

$      168,311

$      155,266

Calculated current billings growth compared to same quarter of prior year

8 %

7 %

SOURCE Qualys, Inc.

Key Takeaways Qualys posted Q1 EPS of $1.95 and revenues of $176M, beating consensus on both.Channel partners made up 52% of revenues, with partner sales up 17% year over year.ETM/CSAM reached 11% of bookings as Qualys lifted 2026 revenue outlook to $721-$727M. Qualys, Inc. (QLYS - Free Report) delivered first-quarter 2026 earnings of $1.95 per share, up 16.8% year over year and beat the Zacks Consensus Estimate by 7.7%. Revenues rose 9.8% year over year to $176 million and surpassed the consensus mark by 1.3%.

First-quarter results reflected benefits from a favorable mix shift toward partners and continued traction in newer platform offerings, alongside steady customer spending behavior. Qualys’ net dollar expansion rate improved to 104% from 103% in the previous quarter.

Qualys’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.58%.

Qualys Keeps Growth Balanced With High ProfitabilityQualys’ business model continued to pair solid top-line expansion with industry-leading profitability. GAAP gross profit soared 11% year over year to $145.6 million, while GAAP gross margin improved to 83% from 82% in the year-ago quarter. GAAP operating income climbed 18% to $60.9 million, while margin expanded 300 basis points to 35%.

On a non-GAAP basis, gross profit soared 11% year over year to $148.3 million, while non-GAAP margin remained flat at 84%. Non-GAAP operating income increased 14% to $80.9 million, and non-GAAP operating margin improved 100 basis points to 46%.

Adjusted EBITDA jumped 11% year over year to $83.3 million. Adjusted EBITDA margin remained flat at 47%, underscoring continued operating leverage, even as the company invested in growth.

Qualys Leans Further on Partners and International MixThe quarter highlighted Qualys’ strategic emphasis on expanding through its partner ecosystem. Channel contribution increased to 52% of total revenues, up from 49% a year ago, with channel-partner revenues rising 17% year over year and direct revenues up 3%.

Geographically, growth remained stronger outside the United States. International revenues increased 15% year over year versus 6% domestic growth, resulting in a 55% U.S. and 45% international mix for the quarter.

Qualys’ Booking Mix Shows Broader Platform AdoptionQualys continues to push beyond core vulnerability management into a broader “risk operations” platform narrative. On a last-12-month basis through the first quarter of 2026, vulnerability management remained the largest component of total bookings at 50%, while ETM/CSAM (Enterprise TruRisk Management / CyberSecurity Asset Management) increased to 11%, and patch management represented 8%. TotalCloud accounted for 5% of bookings, with the remainder spread across other platform modules.

Management tied this evolution to its ETM strategy, emphasizing closed-loop workflows that combine exploit validation, risk quantification and remediation inside an AI-driven Risk Operations Center. The company also pointed to Agent Val (powered by TruConfirm) as a key addition intended to narrow the gap between theoretical exposure and verified exploitability.

Qualys’ Balance Sheet & Cash FlowQualys ended the quarter with $729.3 million in cash, cash equivalents and marketable securities, up from $696.8 million in the previous quarter. The company generated operating cash flow of $95.3 million and free cash flow of $93.6 million in the first quarter.

Qualys repurchased 505,000 shares worth $53.9 million during the first quarter and has repurchased a cumulative 11.2 million shares valued at $1.3 billion since the program’s inception in February 2018. At the end of the first quarter, the company had approximately $306.6 million remaining under its ongoing share repurchase authorization.

QLYS Raises 2026 Revenue Outlook and Profit ViewManagement raised its full-year 2026 revenue guidance to a range of $721-$727 million compared with the prior guidance range of $717-$725 million. It now projects non-GAAP earnings in the range of $7.44-$7.65, up from the earlier range of $7.17-$7.45. The Zacks Consensus Estimate for revenues and EPS is currently pegged at $721.5 million and $7.35, respectively.

Management also reiterated expectations for adjusted EBITDA margin in the mid-40s and free cash flow margin in the low 40s for the full year, signaling a continued balance between investing for growth and defending profitability.

For the second quarter, the company expects revenues between $177.5 million and $179.5 million, indicating year-over-year growth of 8-9%. It projects non-GAAP earnings in the range of $1.73-$1.80. The Zacks Consensus Estimate for revenues and EPS is currently pegged at $176.8 million and $1.81, respectively.

Qualys’ Zacks Rank and Stocks to ConsiderCurrently, QLYS carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Micron Technology (MU - Free Report) , Broadcom (AVGO - Free Report) and NVIDIA (NVDA - Free Report) . Micron Technology sports a Zacks Rank #1 (Strong Buy) at present, while Broadcom and NVIDIA each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by a penny to $58.36 per share in the past 30 days, suggesting an increase of 604% from fiscal 2025’s reported figure. Micron Technology shares have surged 124.3% year to date (YTD).

The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 9 cents to $11.45 per share over the past 30 days and calls for a year-over-year jump of 67.9%. Broadcom shares have soared 25.8% YTD.

The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved upward by 4 cents to $8.07 per share in the past 30 days, implying a year-over-year improvement of approximately 69.2%. NVIDIA shares have risen 5.3% YTD.