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First quarter sales reflect strength of Seed and Crop Protection technology portfolios and progress on growth platforms Continued productivity and cost initiatives across both businesses further improve financial position Full-year 2026 guidance3 reaffirmed, including progress on 2027 value framework INDIANAPOLIS, Ind., May 5, 2026 /PRNewswire/ -- Corteva, Inc. (NYSE: CTVA) ("Corteva" or the "Company") today reported financial results for the first quarter ended March 31, 2026.

For the quarter ended March 2026, Corteva, Inc. (CTVA - Free Report) reported revenue of $4.91 billion, up 11.1% over the same period last year. EPS came in at $1.50, compared to $1.13 in the year-ago quarter.

The reported revenue represents a surprise of +5.58% over the Zacks Consensus Estimate of $4.65 billion. With the consensus EPS estimate being $1.18, the EPS surprise was +27.36%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Corteva, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Seed: $3.02 billion compared to the $2.88 billion average estimate based on three analysts. The reported number represents a change of +11.7% year over year.Net Sales- Crop Protection: $1.88 billion versus the three-analyst average estimate of $1.79 billion. The reported number represents a year-over-year change of +10.1%.Net Sales- Crop Protection- Other: $74 million versus $121.64 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -41.3% change.Net Sales- Seed- Other: $99 million versus the two-analyst average estimate of $120.77 million. The reported number represents a year-over-year change of -10%.Net Sales- Crop Protection- Herbicides: $1.03 billion versus the two-analyst average estimate of $912.97 million. The reported number represents a year-over-year change of +19.4%.Net Sales- Crop Protection- Insecticides: $377 million versus $360.32 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change.Net Sales- Crop Protection- Fungicides: $334 million versus $324.07 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.Net Sales- Seed- Soybean: $306 million compared to the $320.25 million average estimate based on two analysts. The reported number represents a change of +0.3% year over year.Net Sales- Seed- Corn: $2.37 billion versus $2.18 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.7% change.Net Sales- Seed- Other oilseeds: $245 million versus $251.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.Operating EBITDA- Seed: $1.03 billion versus $948.01 million estimated by three analysts on average.Operating EBITDA- Corporate: $-30 million versus the three-analyst average estimate of $-43.83 million.View all Key Company Metrics for Corteva, Inc. here>>>

Shares of Corteva, Inc. have returned -3% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

INDIANAPOLIS, May 7, 2026 /PRNewswire/ -- Corteva, Inc. (NYSE: CTVA) announces that Chief Executive Officer Chuck Magro and Executive Vice President and Chief Financial Officer David Johnson will speak at the 2026 BMO Global Farm to Market conference at 11:00 a.m. EDT on Thursday, May 14, 2026.

Expense ratio, dividend yield, and portfolio breadth set these consumer staples ETFs apart-see how their strategies and holdings compare.

Key Takeaways Mission Produce's Marketing and Distribution segment is the core driver of overall earnings.AVO's segment sales fell 21% in Q1, but adjusted EBITDA rose 33% to $12.9 million.Higher avocado volumes and stronger per-unit margins offset lower industry pricing. Mission Produce, Inc. (AVO - Free Report) derives much of its earnings power from its Marketing and Distribution segment, making this business the core driver of overall performance. The segment benefits from the company’s vertically integrated model, which combines sourcing, ripening, packing and logistics capabilities to deliver avocados efficiently to retail and foodservice customers. As Mission Produce continues to expand customer relationships and increase throughput, the strength of this segment remains central to the company’s long-term investment case.

The latest quarterly results underscore the resilience of this business. In first-quarter fiscal 2026, Marketing and Distribution net sales declined 21% to $234.8 million due to lower avocado prices, but segment-adjusted EBITDA climbed 33% to $12.9 million. The improvement was driven by a 14% increase in avocado volumes and stronger per-unit margins, highlighting management’s ability to focus on profitability rather than simply top-line growth. This performance demonstrates the segment’s capacity to generate earnings even when industry pricing softens.

The outlook for the segment remains favorable, supported by structural growth in avocado consumption and Mission Produce’s expanding global sourcing network. Rising household penetration, strong health and wellness trends and deeper customer partnerships should continue to support volume gains over time. While near-term profitability can fluctuate with pricing and sourcing dynamics, the segment’s scale, operational discipline and proven ability to convert volume growth into EBITDA expansion make it a significant competitive advantage and a key pillar of Mission Produce’s long-term growth strategy.

Operational Strength Powers Growth for Corteva and DoleInnovation, scale and efficient supply chains continue to support margin expansion and long-term earnings growth for Corteva, Inc. (CTVA - Free Report) and Dole plc (DOLE - Free Report) .

Corteva derives much of its earnings strength from its Seed and Crop Protection businesses, which benefit from a broad product portfolio, strong pricing discipline and ongoing innovation. The company continues to invest in premium seed traits, biological products and digital agriculture tools that enhance grower productivity and support higher-margin sales. Its global manufacturing and distribution network enables efficient delivery across key agricultural markets, helping convert rising demand into stronger profitability. With the continued adoption of advanced farming technologies and productivity initiatives, Corteva remains well positioned to drive steady earnings growth..

Dole relies on its integrated sourcing, distribution and marketing platform to drive consistent operating performance across its fresh produce portfolio. The company’s scale and global logistics capabilities allow it to efficiently supply bananas, pineapples and other produce to retail and foodservice customers worldwide. By expanding value-added offerings and improving supply-chain efficiency, Dole is enhancing margins while supporting stable volume growth. As consumer demand for fresh and healthy foods remains strong, the company’s operational discipline and diversified footprint should continue to support long-term earnings and cash flow growth.

AVO’s Price Performance, Valuation & EstimatesShares of Mission Produce have lost 12.1% in the last three months against the industry’s growth of 8%.

Image Source: Zacks Investment Research

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 20.33X, significantly above the industry’s average of 15.89X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 15.2%, while that for fiscal 2027 indicates growth of 5.9%. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days.

Image Source: Zacks Investment Research

AVO keeps gross profit steady despite lower avocado prices, highlighting the resilience of its model as it works to rebuild margins.

Key Takeaways AVO posted Q1 FY26 revenues of $278.6M, down 16.6%, as avocado prices fell about 30%.AVO's adjusted EBITDA rose 5% to $18.5M, with gross margin up 190 bps to 11.3%.AVO plans Calavo Growers deal to diversify offerings and target at least $25M cost synergies in 18 months. Mission Produce, Inc. (AVO - Free Report) is navigating a challenging pricing environment, but its latest results suggest that the company’s business model remains more resilient than headline revenue trends indicate. Although an abundant avocado supply has pressured industry pricing and squeezed margins in certain areas, Mission Produce continues to benefit from strong volume growth, disciplined operational execution and the flexibility of its vertically integrated platform. These strengths are helping the company offset external market volatility and maintain earnings momentum.

The company’s first-quarter fiscal 2026 performance highlighted this resilience. Revenues declined 16.6% year over year to $278.6 million as avocado prices fell roughly 30%, but adjusted EBITDA still increased 5% to $18.5 million. Gross margin expanded 190 basis points to 11.3%, while the Marketing and Distribution segment posted a 33% increase in adjusted EBITDA to $12.9 million, supported by 14% growth in avocado volumes and improved per-unit margins. These results demonstrate the company’s ability to protect profitability even when pricing conditions become less favorable.

Although management expects second-quarter adjusted EBITDA to decline year over year amid continued pricing pressure and delayed California harvest activity, Mission Produce remains optimistic about its long-term outlook. The company continues to benefit from favorable avocado consumption trends, rising household penetration and strategic investments aimed at improving asset utilization.

Additionally, the pending acquisition of Calavo Growers is expected to strengthen Mission Produce’s market position, diversify its product offerings and generate at least $25 million in annualized cost synergies within 18 months of closing. With solid demand tailwinds and an expanding operating platform, Mission Produce appears well-positioned to support long-term EBITDA growth despite near-term pricing and margin pressures.

Steady Demand Helps CTVA and DOLE Weather Cost PressuresCorteva, Inc. (CTVA - Free Report) and Dole plc (DOLE - Free Report) show resilience as disciplined execution and steady demand help offset margin and cost pressures.

Corteva delivered a resilient performance despite ongoing cost and pricing pressures across the agricultural sector. The company continued to benefit from strong seed demand, disciplined cost controls and growth in its crop protection business, which supported profitability even amid softer market conditions. Management highlighted improving operational efficiency and stable farmer demand trends as key drivers of earnings resilience, positioning Corteva well for long-term growth despite near-term headwinds in commodity pricing and global agriculture markets.

Dole demonstrated resilience in a challenging produce environment through steady volume trends and disciplined execution across its diversified fruit portfolio. While pricing pressures and supply-chain costs continued to weigh on margins in certain segments, the company benefited from stable demand, improving operational efficiencies and balanced geographic exposure. Management remains focused on productivity initiatives and strategic investments aimed at strengthening profitability and cash flow generation, reinforcing Dole’s ability to navigate volatile market conditions.

AVO’s Price Performance, Valuation & EstimatesShares of Mission Produce have lost 16% in the last three months against the industry’s growth of 0.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 19.14X, significantly above the industry’s average of 15.29X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 15.9%, while that for fiscal 2027 indicates growth of 5.9%. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days.

Image Source: Zacks Investment Research

AVO stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Agriculture - Operations industry is riding on long-term tailwinds as value-chain innovation and healthier, sustainable food trends reshape growth. CTVA, ADM, SMG, AGRO and AVO look promising.

The company doesn't need to be a blockbuster growth stock to keep investors happy.

Shares of Best Buy BBY surged 18% on Thursday after the electronics retailer reported stronger-than-expected first-quarter earnings, boosted by higher margins and modest sales growth.

The stock rally followed quarterly operating earnings of $1.28 per share, up from $1.15 a year earlier.

Revenue rose 2% year over year to $8.94 billion from $8.78 billion, while same-store sales increased 2%.

Despite the sharp gain, investor attention has increasingly shifted toward the company’s dividend, which currently yields around 5%, among the highest payouts in the S&P 500.

Best Buy shares traded around $76 during Thursday’s session, still below their October 2025 high near $84.

The company’s latest results reinforced confidence that the dividend remains well supported despite concerns about slowing consumer electronics demand and rising memory costs.

Best Buy currently pays a quarterly dividend of 96 cents per share, translating to an annualized payout of $3.84 per share.

Wall Street analysts expect the company to generate fiscal 2027 earnings of approximately $6.48 per share, comfortably covering the dividend obligation.

In addition to dividends, Best Buy said it repurchased $202 million worth of stock during the first quarter and plans to buy back another $300 million by the end of the fiscal year.

The company maintained its full-year operating earnings guidance of $6.30 to $6.60 per share, compared with $6.43 in fiscal 2026.

Jefferies also raised its price target on Best Buy shares to $89 from $83 while maintaining a Buy rating, citing stronger-than-expected comparable sales and improving momentum.

The firm noted that growth in third-party marketplace operations and advertising initiatives through Best Buy Ads could provide additional margin expansion opportunities that remain underappreciated by the market.

Investors remain cautious about the broader outlook for consumer electronics demand as rising memory chip costs threaten to increase prices for PCs and other technology products.

The memory shortage, sometimes referred to as “RAMageddon,” has raised concerns that higher hardware prices could discourage consumer purchases.

Incoming CEO Jason Bonfig acknowledged the pressure during a call with reporters.

“We did see some staggered price increases in Q1. As we move into Q2, we do expect ASPs to increase, and units from an elasticity perspective to be impacted,” Bonfig said. “We continue to work very closely with our vendors to mitigate this.”

However, executives suggested consumers have not yet shown signs of pulling forward purchases due to pricing fears.

“We are not seeing any indicators that would say the customer's pulling forward purchases. In fact, very few are worried about memory,” CEO Corie Barry said.

“While they're thoughtful about the big-ticket buys, they're absolutely willing to spend on those high price points when they need to or when the technology is compelling enough,” she added.

Bonfig echoed similar comments.

“They don't walk into our store with fear about memory prices, and we're not seeing any indication that they're pulling core purchases as a result of it,” he said.

Best Buy has also continued diversifying beyond its traditional electronics business.

Last August, the company launched Best Buy Marketplace, allowing third-party sellers to offer products through its platform.

The retailer has also expanded its digital advertising business through Best Buy Ads, following strategies used by larger retail rivals including Amazon and Walmart.

The company reported sales growth across gaming, computing, mobile phones, and services during the quarter.

Appliance sales remained weaker due to a sluggish housing market, though management said recent improvements in marketing and delivery speed helped performance improve during May and the Memorial Day shopping period.

While analysts do not expect Best Buy to become a high-growth technology stock, the combination of stable earnings, shareholder returns, and a sizable dividend continues attracting income-focused investors.

BBY beats Q1 FY27 estimates as comps turn positive, margins rebound and guidance holds ahead of a CEO transition.

BBY highlights Marketplace and Best Buy Ads growth, an upcoming CEO transition and new tech launches as it maintains its fiscal 2027 outlook.

Finding a good, high-yielding dividend stock isn't easy these days. Stock prices have been rising, and that's been pushing yields down in the process. One stock that still offers a fairly high yield, however, is Best Buy (BBY +1.85%), which currently yields about 4.9%. That's more than four times the S&P 500 average of just over 1%.

Could this retail stock, which is coming off a strong quarterly performance, be a solid income investment to put in your portfolio today?

Image source: Getty Images.

The company shows progress in its recent earnings report A common concern for income investors is that when it comes to a high-yielding stock, there's often some risk or worry attached with it. Best Buy, while it's a big name in retail, has been struggling in recent years to generate growth, and its shares have declined by around 35% over the past five years.

But when the company reported its first-quarter earnings for Fiscal 2027 last month, the results were encouraging. The company beat expectations on both its top and bottom lines, and it generated comparable sales growth of 2%. That's a key metric for investors because it means that organically, the business has been growing, without simply relying on acquisitions or new store openings.

Even more encouraging was that the growth was across most of its product categories, and it achieved this while also improving its margins along the way. The results were positive across the board for Best Buy, and if it can build on them, the retail stock could be due for much better days ahead.

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Is Best Buy a good dividend stock to own? Best Buy has been paying dividends for decades, and it currently pays shareholders $0.96 per share every quarter. In its most recent quarter, its diluted per-share profit was $1.31 -- comfortably above the rate of its dividend. And if it were to maintain that level of profitability, its dividend payout ratio would be approximately 73%.

It's a sustainable payout that should give investors confidence in the dividend. Along with some solid results of late, there are plenty of reasons to like Best Buy's stock right now. Trading at just 12 times its projected earnings (based on analyst expectations), it also comes at a fairly low price tag, potentially making this a great dividend stock to buy right now. While its yield may seem a bit high, Best Buy's payout looks safe, and it may generate a lot of recurring income for your portfolio.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Best Buy (BBY - Free Report) Incorporated in 1966 and headquartered in Richfield, MN, Best Buy Company Inc. (BBY - Free Report) is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, security, appliances and related services. The company retails technology products in the United States and Canada.

BBY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Retail-Wholesale stock. BBY has a Momentum Style Score of A, and shares are up 27.1% over the past four weeks.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.03 to $6.55 per share. BBY boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, BBY should be on investors' short list.

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MINNEAPOLIS--(BUSINESS WIRE)--In partnership with Meta, Best Buy is bringing Meta Lab @ Best Buy to more than 50 of its stores this summer. These 900-square-foot experiential spaces give customers a hands-on way to explore Meta’s full product lineup of AI glasses and VR headsets through interactive demos and displays, smart mirrors, personalized fittings and more.

Meta AI Glasses are designed to be worn and explored firsthand. Customers want to know the fit, feel and experience, which is where demos can make all the difference. More than 50% of Best Buy customers say they want to see Meta’s AI glasses in person before making a purchase. Expanding Meta Lab to Best Buy stores builds on that momentum — giving customers an elevated experience and more opportunities to try out the tech for themselves.

“Our customers are passionate about experiencing what’s next and they turn to Best Buy to bring it to life,” said Patrick McGinnis, chief merchandising officer at Best Buy. “Meta Lab @ Best Buy is an experience customers can’t find at any other retailer and sets a new standard for how our customers will explore, play with and discover the latest cutting-edge tech.”

"Best Buy is an incredible partner,” said Christa Wittenberg, vice president of global retail sales at Meta. “Together we're reimagining how consumers shop the next generation of personal technology. These are immersive, hands-on spaces built for real discovery — where people can experience firsthand just how stylish, fun, and personal AI glasses and VR really are. We want customers to walk in curious and leave genuinely excited about what's possible."

Inside Meta Lab @ Best Buy

In all Meta Lab @ Best Buy locations, customers can work with a dedicated Meta Sales Specialist to learn more and try on the largest assortment across big-box retail. Here’s a look at what customers can expect:

Try-on each style: The experience will have a dedicated wall highlighting the large assortment of AI glasses and will allow customers to get a hands-on fit and feel for them. Plus, displays nearby use interactive UV light to capture how lenses may adjust in different light settings. Immersive demos: Customers can get hands-on with cutting-edge technology as they demo Meta Quest 3, Meta Ray-Ban Display glasses, and more. With Meta Quest customers can get fully immersed in a favorite game, show or workout. Customers can try on Meta Ray-Ban Display glasses and use hand movements to control the glasses without ever taking out a phone. Plus, Meta Sales Specialists are there to guide the experience so shoppers can explore all the features the tech has to offer. Built-in prompts: While trying on the Ray-Ban Meta AI glasses, shoppers can interact with displays that feature prompts to ask Meta AI and showcase how the technology can be used in everyday life. Tech-forward displays: With the click of a button, customers can virtually try on different shades and styles of the Ray-Ban Meta AI glasses using high-tech smart mirrors. In the mirror, customers can see the glasses on themselves virtually, browse frames and colors with the touchscreen or take a photo to compare favorite looks side-by-side. Where to visit Meta Lab @ Best Buy

The first Meta Lab @ Best Buy experiences launch this June, with additional locations rolling out throughout the summer. Here’s a look at some of the first places shoppers can see the spaces:

San Carlos, Calif. Roseville, Minn. Woodland Park, N.J. Greenville, S.C. Columbus, Ohio More News From Best Buy Co., Inc.

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Best Buy (BBY - Free Report) Founded in 1966 and headquartered in Richfield, MN, Best Buy Co., Inc. (BBY - Free Report) is one of North America's largest specialty retailers of consumer electronics, computing products, appliances, entertainment products, mobile phones and technology-related services. The company operates as an omnichannel retailer, combining its extensive store network with e-commerce capabilities to provide customers with a seamless shopping experience across physical and digital channels. 

BBY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.31; value investors should take notice.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.04 to $6.56 per share. BBY boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BBY should be on investors' short list.

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.

, /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:

William Blair's 46th Annual Growth Stock Conference. Sumedh Thakar, president and CEO, and Joo Mi Kim, CFO, will host one-on-one meetings and participate in a fireside chat in Chicago, Illinois on Tuesday, June 2, 2026 at 9:20am CT. 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.

Achievement reaffirms Qualys' commitment to delivering trusted, best-in-class security solutions for federal agencies and highly regulated industries

, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of cloud-based IT, security and compliance solutions, today announced that its TotalCloud solution has achieved FedRAMP High Authorization, sponsored by the U.S. Drug Enforcement Agency (DEA). This milestone extends the FedRAMP High status of the Qualys Government Platform to include Cloud-Native Application Protection Platform (CNAPP). Qualys TotalCloud is now listed on the FedRAMP Marketplace, enabling federal agencies, suppliers, and highly regulated industries to leverage its comprehensive cloud security capabilities.

The FedRAMP High Authorization represents the most stringent level of compliance within the Federal Risk and Authorization Management Program (FedRAMP). It aligns with NIST SP 800-53 High Impact controls, ensuring the platform meets the rigorous security requirements for handling the government's most sensitive unclassified data.

Unified Cloud Security for Federal Agencies
Now part of the Qualys Government Platform, TotalCloud provides federal agencies and commercial suppliers with a unified approach to cloud-native security. The platform integrates risk-based prioritization from code to cloud, compliance monitoring, runtime/threat detection, full attack surface discovery, and cloud-native application protection into a single, scalable platform. This comprehensive solution helps organizations accelerate compliance, reduce cyber risk, and streamline security operations.

"In a world where AI-driven threats are shrinking the time to exploit, achieving FedRAMP High Authorization for TotalCloud underscores Qualys' commitment to mission velocity, aligning with the government's Cloud Smart strategy, so our cyber defenders can gain the upper hand," said Sumedh Thakar, president and CEO of Qualys. "Adding this milestone for CNAAP ensures agencies can modernize with confidence, securing their most sensitive workloads, while meeting the highest federal standards for trust and resilience."

Benefits for Federal Agencies and Regulated Industries
Federal agencies, contractors, and organizations aligned to NIST SP 800-53 can leverage Qualys TotalCloud's FedRAMP High Authorization to reduce operational risk and accelerate compliance. TotalCloud supports organizations that need visibility and control over cloud workloads, assuring the posture and risk management of those systems. Through inheritance of pre-validated controls within a shared responsibility model, organizations can streamline their ATO processes, minimize audit complexity, and gain faster access to highly regulated federal environments.

Availability
TotalCloud is now available as part of the Qualys Government Platform on the FedRAMP Marketplace. To learn more, visit qualys.com/fedramp-marketplace or request a demo at qualys.com/gov.

Additional Resources

Read our blog post, "Qualys TotalCloud Achieves FedRAMP High Authorization for Cloud Security and Compliance Assurance" Request a demo of the Qualys Government Platform at qualys.com/gov. Register for the webinar, "FedRAMP and NIST Cloud Security and Compliance Requirements" Follow Qualys on LinkedIn, Instagram and X About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a leading provider of cloud-based security, compliance and IT solutions with more than 10,000 subscription customers worldwide, including a majority of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and automate their security and compliance solutions onto a single platform for greater agility, better business outcomes, and substantial cost savings.

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

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

Media Contact:   
Rachel Yap Winship 
Qualys
[email protected]

SOURCE Qualys, Inc.

Investors in Qualys, Inc. (QLYS - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 18, 2026 $200 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Qualys shares, but what is the fundamental picture for the company? Currently, Qualys is a Zacks Rank #3 (Hold) in the Security industry that ranks in the Bottom 37% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while five analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.81 per share to $1.78 in that period.

Given the way analysts feel about Qualys right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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Stock to Watch: Qualys (QLYS - Free Report) Qualys Inc. has been a leading force in offering information security solutions. Qualys' suite of IT, security and compliance solutions spans diverse applications, including asset management, IT security, cloud-native security, web application security and compliance. At its core is the Qualys Cloud Platform, an end-to-end security solution delivering continuous visibility to thwart cyber threats effectively.

QLYS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. QLYS has a Momentum Style Score of B, and shares are up 15.5% over the past four weeks.

For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $7.57 per share. QLYS boasts an average earnings surprise of +11.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, QLYS should be on investors' short list.