Radware (RDWR) Stock Climbs As Cloud ARR Recasts Its Growth Story

Radware stock jumped 6.7% to US$24.92 after earnings, a sharp move for a cyber security vendor that had drifted lower over the past month. The market is cheering one thing above all else: the headline is cloud and subscription scale starting to matter for the income statement.

Revenue reached US$82.3m and non GAAP diluted earnings per share from continuing operations came in at US$0.30. Cloud annual recurring revenue crossing US$100m, with cloud now a much larger share of total recurring business, is the data point driving this sentiment reset. The rest of the report tells a more nuanced story that follows.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs Q2 2025): US$82.28m vs. US$74.22m (up about 11%)
• Net Income from Continuing Operations (Q2 2026 vs Q2 2025): US$3.88m vs. US$4.22m (down about 8%)
• Basic EPS (Q2 2026 vs Q2 2025): US$0.09 vs. US$0.10 (down about 6%)
• Cloud Annual Recurring Revenue (ARR, Q2 2026 vs Q2 2025): just over US$100m vs. roughly US$82m (up about 22%)

Prefer clean charts instead of scrolling through another wall of numbers and earnings tables? See Radware's full financial picture with an easy visual view of its valuation in the company report for Radware.

Radware cloud growth keeps bullish story intact

For investors leaning positive on Radware, Q2 results give the thesis some backing. Revenue grew 11% year on year and cloud ARR passed US$100m with 22% growth. Cloud now accounts for 40% of total ARR and subscriptions are 55% of revenue, which fits the idea of a security provider steadily tilting toward recurring, cloud heavy business. Americas revenue rising 24% supports the view that the go to market push in larger markets is gaining traction, even if headline EPS looks soft once FX noise is included.

Profitability pressures leave room for a cautious view

The bear side still has material talking points. Net income from continuing operations and basic EPS both slipped year on year, and Q3 EPS guidance of US$0.28 to US$0.29 sits below the FX adjusted Q2 run rate. FX headwinds and higher operating costs are limiting how much of the revenue and cloud ARR growth drops to the bottom line. Regional performance is uneven, with EMEA slightly lower while APAC and the Americas grow. Recent 7 day and 30 day share price declines also show sentiment has been fragile.

After FX noise, softer EPS guidance and uneven regions, are these issues isolated or early red flags? Review our risk analysis for Radware which shows 2 important warning signs

Stay Ahead With Radware Insights

If Radware's cloud ARR momentum and recent share price move have caught your attention, register for free with Simply Wall St and add it to your Watchlist to track price against fair value and watch for a better entry point over time. Once you own the stock, use the Portfolio Command Center to cut through day to day noise and stay focused on the most important developments for your holdings. For a broader view, tap into the Community to see how other investors are thinking about Radware and similar stocks. By surfacing potential catalysts and risks early, Simply Wall St helps you stay ahead of the market and make decisions with more confidence.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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