Abstract
Radware Ltd. will report its quarterly results on February 11, 2026 Pre-Market, with current-quarter forecasts pointing to revenue growth and improving profitability, while the market looks to reconcile high gross margins with a rising earnings trajectory and awaits confirmation of momentum in the company’s products and services mix.
Market Forecast
Current-quarter forecasts for Radware Ltd. indicate revenue of $78.58 million, up 10.08% year over year, with adjusted EPS estimated at 0.30, up 27.71% year over year; estimated EBIT is $11.15 million, up 45.56% year over year, while margin forecasts were not disclosed. Using the previous quarter’s mix as a reference point, the business remains anchored by Products and Services, with Services comprising 43.45% of last quarter’s revenue and Products 56.55%; the absence of disclosed margin guidance means investors will focus on whether the company can sustain its high gross margin against this mix.
The main business is balanced between hardware and software-centric Products and a growing Services base that supports recurring revenue, with last quarter’s mix suggesting Services contribute a substantial portion of revenue and provide ongoing support opportunities for customer retention and expansion. The most promising segment remains Services given its contribution to repeatable sales, with last quarter’s Services revenue estimated at $32.72 million based on the reported mix; however, segment-level year-over-year growth was not disclosed.
Last Quarter Review
Radware Ltd. reported revenue of $75.31 million (up 8.38% year over year) in the previous quarter, with a gross profit margin of 80.66%, GAAP net profit attributable to shareholders of $5.65 million and a net profit margin of 7.50%, and adjusted EPS of 0.28 (up 21.74% year over year). A key financial highlight was the improvement in net profitability, with net profit rising 33.82% quarter over quarter, suggesting solid operating leverage on relatively high gross margins.
Within the business mix, Products contributed an estimated 56.55% of revenue and Services 43.45%, equating to approximately $42.59 million and $32.72 million, respectively; segment-level year-over-year comparisons were not available in the dataset, leaving investors to infer mix trends primarily from the aggregate growth rates and profitability dynamics.
Current Quarter Outlook
Main business momentum and earnings translation
The core of Radware Ltd.’s outlook this quarter revolves around converting steady top-line expansion into proportionally stronger earnings, given the high baseline gross margin reported last quarter at 80.66%. The revenue estimate of $78.58 million implies a sequential increase of 4.34% from $75.31 million, which, if achieved, would extend the company’s recent trend of steady growth while testing the resilience of its margin profile against the current product–service mix. Adjusted EPS is forecast at 0.30, a sequential improvement of 7.14% over the prior quarter’s 0.28, reflecting expected operating leverage and disciplined expense control consistent with the sizable year-over-year gain implied in EBIT. The company’s EBIT is forecast at $11.15 million, representing 45.56% year-over-year growth, which suggests that fixed-cost absorption and efficiency improvements remain key to translating revenue into operating income in the near term. Without a disclosed gross margin forecast, the market will look at the relationship between revenue growth and EBIT expansion to infer improvements in unit economics and operating scale. A continuation of last quarter’s net profit margin of 7.50% or an improvement above that level would likely be interpreted as evidence of effective cost management and favorable revenue mix dynamics, though confirmation will depend on the composition of product and service sales during the period. The quality of earnings will also be under review, with attention on whether the company maintains the previous quarter’s robust conversion from gross profit to net income, which underpinned the 33.82% quarter-on-quarter increase in net profit. Altogether, the interplay among revenue growth of 10.08% year over year, high gross margin, and an EPS estimate implying enhanced operating leverage will be central to how investors recalibrate expectations for the remainder of the year.
Services as the growth vector within a balanced mix
Services remain a focal point within Radware Ltd.’s revenue model, contributing an estimated 43.45% of last quarter’s sales, or approximately $32.72 million, based on the reported mix. While explicit segment-level year-over-year figures were not provided, the strategic importance of services is clear for recurring revenue generation, customer lifecycle monetization, and support-driven expansion within existing deployments. If the revenue mix remains consistent with last quarter, the current-quarter revenue estimate of $78.58 million would imply indicative Services revenue of approximately $34.15 million and Products revenue of approximately $44.43 million, underscoring how incremental top-line growth can accumulate into the services base without a major shift in mix. The services contribution can also provide a stabilizing influence on margins through support, maintenance, and cloud-delivered offerings, which, when layered on top of deployed products, can yield favorable incremental economics even when hardware cycles are uneven. For the current quarter, the key watchpoint will be whether services traction keeps pace with the overall revenue growth rate of 10.08% year over year, which would reinforce the premise that recurring streams can underpin predictability in the earnings model. The services line also interacts with the EPS outlook, given that the forecast of 0.30 represents a 27.71% year-over-year increase; a healthy services contribution can mitigate volatility and support steadier translation of revenue into earnings. If realized EBIT growth of 45.56% year over year materializes, it may imply that services-related cost structures are scaling advantageously or that the company has improved operational efficiency, both of which can support sustained earnings expansion in subsequent quarters. In this context, Services should be viewed as both a revenue contributor and a margin stabilizer, with its performance playing a significant role in determining whether the company can sustain or improve upon last quarter’s net profit margin of 7.50%.
Key stock price drivers around guidance tone and margin durability
Investor reaction this quarter will likely hinge on how Radware Ltd.’s actuals track versus forecasts and on management’s qualitative commentary around revenue visibility, margin durability, and spending efficiency. With the current-quarter revenue estimate at $78.58 million and adjusted EPS at 0.30, a beat-or-miss dynamic may be shaped by the interplay of product shipments and services renewals, particularly given the company’s historically high gross margin of 80.66% last quarter. The degree of operating leverage, signaled by the EBIT estimate of $11.15 million and its 45.56% year-over-year growth, suggests potential sensitivity in the stock to even small variations in revenue relative to fixed and semi-fixed costs. If the product–service mix resembles last quarter’s proportions, a rough translation of the revenue estimate would imply Products of approximately $44.43 million and Services of approximately $34.15 million; deviations from this illustrative mix could move margins relative to expectations, which investors will monitor closely. Given net profit improved by 33.82% quarter over quarter in the previous period, continuity in bottom-line momentum could reinforce confidence in execution and cost control, while a slowdown would raise questions about the scalability implied by the EPS and EBIT forecasts. The absence of a published gross margin outlook means the market may infer margin trends from commentary on pricing, customer mix, and the balance between subscription-like services and product revenue, making narrative tone a significant near-term driver. The stock’s sensitivity to earnings quality will also be in focus, with attention on whether revenue growth is accompanied by a proportionate or better-than-proportionate increase in EBIT and net income, signaling improved efficiency. Overall, guidance on revenue cadence and expense trajectory—especially as it relates to sustaining an earnings step-up from 0.28 to 0.30—could be pivotal in shaping immediate share price movement after the release.
Analyst Opinions
Within the specified six-month window and the defined search parameters, there were no qualifying English-language previews or rating updates captured that would allow a tally of bullish versus bearish views; as a result, a directional majority could not be established, and no consensus side is presented. In the absence of a compiled majority view, market interpretation is likely to center on the interplay between the forecast revenue growth of 10.08% year over year, the projected adjusted EPS of 0.30, and evidence of operating leverage implied by the 45.56% year-over-year EBIT estimate. A constructive reaction would likely require confirmation that revenue of $78.58 million is attainable with margins that remain consistent with the previous quarter’s 80.66% gross margin foundation, alongside continued net profit expansion from the last quarter’s $5.65 million and a net margin near or above 7.50%. Conversely, if realized revenue materially undershoots $78.58 million or if expense intensity rises such that the EPS translation falls short of 0.30, investor skepticism could increase, especially given the expectations embedded in the EBIT forecast. In practical terms, the market will scrutinize not only headline results but also the composition of sales between Products and Services, the sustainability of high gross margin, and the coherence of management’s spending and investment framework relative to the earnings path implied by current forecasts.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments