Israel's Radware Q3 revenue rises to record high on cloud demand

What happened

Israel's Radware reported third-quarter revenue rose 12% from a year earlier to a record $84.4, driven by strong cloud demand. Non-GAAP diluted earnings per share slipped to $0.32, with results hurt by currency headwinds.

Confirmed

Global impact / market context

Radware's record revenue shows companies still pay for cloud application security, which protects software from attacks. Cloud annual recurring revenue, meaning repeat subscription sales, reached $107. Currency pressure on costs shows profit can shrink even when sales grow.

Analyst inference

Wall Street's median 12-month price target is $30.50, about 14.1% below the October 27 closing price of $35.50, suggesting analysts see limited upside. The average rating is buy, so investor positioning already reflects optimism about cloud security demand.

Analyst inference

What to watch

1. Radware expects continued adoption of its cloud security platform with new artificial intelligence capabilities, and says customer demand for application security solutions remains robust. Confirmed
2. Watch whether future quarterly results keep cloud annual recurring revenue growing at a similar pace, since repeat subscription sales support steadier revenue and help offset swings in one-time deal activity. Proposed
3. Further appreciation of the Israeli shekel could keep raising Radware's expenses, which would pressure profit per sale even if revenue continues to grow on cloud demand. Analyst inference

Evidence

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