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Radware Ltd.
NASDAQ: RDWR Technology IT 🔎 Screen
🏹 Trader: 🎯 Near 52W High View all →
$1.2B
Market Cap
53.5
P/E
24.39
PEG
4.4%
ROCE
5.4%
ROE
0.03
D/E
3.8%
OPM
-13.8%
% from 52W High
49
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for RDWR including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding RDWR
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 1.39M $36.5M 0.06% Mar 2026
Cathie Wood ARK Investment Management 91.6K $2.4M 0.02% Mar 2026
Steve Cohen Point72 Asset Management 64.0K $1.7M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Radware Q1 2026: 11% revenue growth to $79.8M, 23% cloud ARR growth
Revenue & Profitability
Q1 2026 revenue grew 11% year-over-year to $79.8 million. Net income from continuing operations was $13.4 million, and diluted EPS was $0.30. Operating income was $11 million, representing a 13.8% operating margin. Cloud ARR reached $98 million, up 23% year-over-year, and total ARR increased 9% to $250 million. The company held $434 million in cash and equivalents.
Outlook
Management sees strong demand tailwinds from AI-driven attacks, zero-day exploits, and API abuse, which increase the need for runtime protection. They view new AI security tools as complementing rather than replacing their platform. Memory component cost pressure is expected to persist but be manageable. The company guides Q2 2026 revenue of $81–$82 million and non-GAAP EPS of $0.28–$0.29, with approximately $2 million of forex headwinds in OpEx.
Growth Drivers
Key growth levers include cloud ARR (up 23% year-over-year), API security (fastest-growing area with double-digit customer orders in Q1), and the on-premise DefensePro X refresh cycle. North America revenue grew 40% year-over-year, driven by improved go-to-market execution. The MSSP business and agentic AI protection (early stage) are also identified as growth accelerators.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Gross margin was 82.2% in Q1 2026, down slightly from 82.4% a year ago, due to higher memory component costs and forex impacts. Operating margin declined 90 basis points to 13.8%, partly from $2.6 million in currency exchange impacts (shekel strengthening). Management expects memory cost pressure to persist but is managing via pricing discipline and pushing cloud products. Q1 OpEx was not explicitly given; Q2 2026 OpEx guided at $56–$57 million.
Key Risks
Risks flagged include memory component cost pressure from supply chains, currency exchange rate volatility (especially Israeli shekel strengthening impacting operating expenses and EPS), non-linear ARR due to contract expirations and churn, and general economic conditions. In Q&A, analysts raised concerns about total ARR declining $1 million quarter-over-quarter, which management attributed to typical year-end contract expirations.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Record Q2 2026 revenue grew 11% year-over-year, driven by strong cloud security and new AI-powered solutions. Cloud ARR surpassed $100 million, and North America led regional growth. Launch of Xploit Shield and continued innovation are fueling pipeline and platform adoption.
Q1 2026 Q1 2026 2026-05-07
Q1 2026 saw 11% revenue growth to $79.8M, driven by cloud security and strong Americas performance. Cloud ARR rose 23% year-over-year, and API security showed strong early traction. Q2 revenue is guided at $81–$82M, with continued focus on innovation and margin discipline.
Q4 2025 Q4 2025 2026-02-11
Record revenue and earnings growth in 2025 driven by cloud and defense products, with strong momentum in cloud ARR and major product innovation in AI and API security. Guidance for Q1 2026 reflects continued investment and robust demand.
Q3 2025 Q3 2025 2025-10-29
Q3 2025 saw 8% revenue growth to $75.3M, with cloud security ARR up 24% and non-GAAP EPS up 22%. Americas led with 28% revenue growth, while strong cloud and AI-driven innovation fueled strategic wins and industry recognition.
Q2 2025 Q2 2025 2025-07-30
Q2 2025 saw 10% revenue growth and 39% higher EPS, driven by strong cloud security momentum and major wins across regions. Cloud ARR accelerated to 21% growth, with continued investment in AI and sales expansion supporting future targets.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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