Qualys lifts FY2026 outlook as revenue guidance draws pushback

What does the new FY2026 guidance mean?

$8.070-$8.140 in adjusted earnings per share (EPS) and $736.9 million-$738.9 million in revenue: Qualys (NASDAQ: QLYS) raised its FY2026 guidance on Tuesday morning, above consensus estimates of $7.440 per share and $735.5 million, respectively.

The company also updated Q4 adjusted EPS guidance to $2.050-$2.120. Q4 revenue guidance of $191 million-$193 million implies 9%-10% growth. Shares nevertheless declined because that revenue outlook failed to satisfy investors, who wanted stronger growth.

Takeaway: The full-year guidance clears consensus, but investors focused on a Q4 revenue path they viewed as too soft.

How did the latest quarter perform?

$188.05 million in revenue and $2.12 in adjusted EPS: In results issued Monday, November 9, Qualys topped consensus revenue of $186.63 million and consensus EPS of $1.96 by $0.16. Revenue rose 10.7% from the prior-year period, when EPS was $1.86.

Qualys recorded a 29.38% net margin, meaning revenue left after costs, and 37.52% return on equity (ROE), profit measured against shareholder equity. Research analysts collectively expected $5.84 of EPS for the current year.

Takeaway: The latest quarter combined double-digit revenue growth with a clear earnings beat.

How did shares trade?

$202.46 opening price and $7.01 billion market capitalization: Qualys shares opened at $202.46 on Tuesday. The company carried a 35.03 price-to-earnings (P/E) ratio and a 0.54 beta, a measure of market sensitivity.

The one-year range stretched from $74.51 to $235.54. The 50-day simple moving average, a rolling average price, stood at $191.07; the 200-day average was $137.06.

Takeaway: Tuesday’s open sat above both moving averages, while the one-year range remained broad.

What did analysts change?

$189.87 consensus price target and a “Hold” consensus: MarketBeat reported one Strong Buy rating, four Buy ratings, 11 Hold ratings and one Sell rating. Its consensus price target was $189.87.

Recent research changes lifted several price targets but produced mixed ratings:

• TD Cowen raised its target from $170.00 to $200.00 and assigned a “hold” rating on Tuesday, October 13.
• Royal Bank of Canada increased its target from $145.00 to $180.00 and assigned a “sector perform” rating on Wednesday, August 5.
• JPMorgan Chase & Co. lifted its target from $139.00 to $150.00 and assigned a “neutral” rating on Monday, July 27.
• Piper Sandler increased its target from $175.00 to $185.00 and assigned a “neutral” rating in a Tuesday report.
• Wall Street Zen lowered its rating from “buy” to “hold” on Monday, November 2.

Takeaway: Several analysts lifted price targets, but the aggregated rating stayed at Hold.

What did insiders sell?

$2,192,747 across 11,672 shares: Qualys insiders sold that amount of stock over the last quarter.

On Monday, September 14, CEO Sumedh S. Thakar sold 3,200 shares at an average price of $170.05, worth $544,160. The sale reduced the CEO’s direct holding by 1.74%, leaving 180,338 shares valued at $30,666,476.90.

On Tuesday, October 20, Bruce Posey sold 881 shares at an average price of $189.52, worth $166,967.12. His holding fell 1.50% to 57,807 shares valued at $10,955,582.64.

Qualys disclosed both sales in Securities and Exchange Commission filings. Each trade used a pre-arranged Rule 10b5-1 trading plan, which permits scheduled insider sales. Insiders own 0.72% of the stock.

Takeaway: Quarter-long insider selling totaled $2,192,747 and came through pre-set trading plans, while insider ownership stands at 0.72%.

What does the mROC alliance add?

1999: Qualys was founded in 1999 and remains headquartered in Foster City, California, serving customers globally. Its cloud-based security and compliance software helps organizations identify and manage cybersecurity risks.

Qualys also expanded its global mROC alliance with partners spanning mobile, operational technology/Internet of Things (IoT), and identity security. The broader ecosystem could strengthen its risk-management offerings, though the impact is likely longer term.

The platform combines information on IT assets and security posture for vulnerability management, threat detection and compliance. Products cover vulnerability assessment and remediation, cloud security, endpoint protection, web application security and policy compliance across cloud environments, on-premises infrastructure and other connected assets.

Takeaway: The alliance is a longer-term product lever; the Q4 revenue target is the immediate financial checkpoint.