Radware Q1 Earnings Call Highlights
Radware (NASDAQ:RDWR) reported first-quarter 2026 revenue growth of 11% year over year, as management cited continued momentum in cloud security, API protection and North American sales execution.
President and CEO Roy Zisapel said the company delivered revenue of $80 million and earnings per share of $0.30 in the quarter, calling it “another quarter of double-digit growth in revenue” and the fourth such quarter in the past five quarters. Chief Financial Officer Guy Avidan later specified that first-quarter revenue was $79.8 million and non-GAAP diluted earnings per share from continuing operations were $0.30.
Zisapel said Radware’s performance reflected progress against several strategic priorities, including scaling its cloud security platform, expanding its managed security service provider, or MSSP, business, driving product innovation and maintaining operating discipline across regions and functions.
Cloud Security and API Protection Drive Momentum
Cloud security remained a major growth driver in the first quarter. Avidan said cloud annual recurring revenue grew 23% year over year to $98 million, representing 39% of total ARR, up from 35% in the first quarter of 2025. Total ARR increased 9% year over year to $250 million.
Zisapel said demand was particularly strong for application security, hybrid DDoS services and the company’s new API security offering. He pointed to a large government institution in Latin America that selected Radware to secure national-level digital infrastructure across Cloud Application Protection, API security and advanced DDoS mitigation.
He also cited a new hybrid cloud DDoS deployment with a large global fintech company, which selected Radware DefensePro X appliances together with its cloud DDoS service to address attacks affecting payment availability.
Zisapel said Radware’s API security solution has become “one of the fastest-growing areas” of the portfolio. Following the integration of Pynt, the API security testing company Radware acquired, the company now offers API security spanning discovery, posture management, testing and runtime protection, he said. In the question-and-answer session, Zisapel said Radware closed a double-digit number of API security customer orders in the first quarter and that traction remained strong.
AI Security Seen as Emerging Tailwind
Management also emphasized artificial intelligence as both a driver of customer demand and a differentiator for Radware’s platform. Zisapel said attackers are increasingly using AI-powered automation, while advanced AI penetration and code-scanning tools are accelerating vulnerability discovery and reducing the time between exposure and exploitation.
He said these trends make runtime protection more important, arguing that prevention-only and “shift left” approaches are becoming insufficient. Radware’s platform is designed to secure applications and infrastructure as attacks occur, including zero-day exploits, API abuse and automated attack chains, he said.
Zisapel also discussed Radware’s agentic AI protection offering, introduced in the prior quarter. He described the product as early-stage but said the company is seeing strong customer engagement as enterprises consider the new attack surface created by AI agents with broad access rights.
During the Q, Zisapel said AI security sales cycles in enterprise accounts are still in the early stages, with the product launched roughly three months earlier. He said Radware has increased the number of proofs of concept and expects to begin closing orders during the current quarter.
Americas Revenue Jumps as Go-to-Market Changes Progress
Regional performance was led by the Americas, where first-quarter revenue rose 40% year over year to $38.4 million, representing nearly half of total revenue. On a trailing 12-month basis, Americas revenue grew 15% year over year.
Zisapel said investments in leadership, sales coverage and partner engagement in North America are translating into improved execution. In response to a question from Needham analyst Jeffrey Hopson about the company’s hunter/farmer sales model, Zisapel said North America was the first region to implement the transition and that Radware has seen strong results in recent quarters.
He said the model has improved both new account activity and existing customer expansion, adding that Radware is now implementing the approach “country by country” in Europe and Asia.
EMEA revenue was $25.1 million in the quarter, down 11% year over year, though trailing 12-month revenue in the region increased 8%. APAC revenue was $16.3 million, flat with the prior-year quarter, while trailing 12-month APAC revenue increased 3%.
DefensePro X, MSSP Partnerships Remain Focus Areas
Zisapel said Radware’s on-premise DDoS protection product, DefensePro X, had an “outstanding quarter,” supported by large-scale refresh and expansion deals. Customers cited on the call included one of the world’s largest SaaS companies, a multinational e-commerce provider and one of the largest healthcare systems in the U.S.
Management also highlighted progress in the MSSP channel. Zisapel said Radware made headway onboarding tier-one carriers and service providers and building a pipeline it expects to convert in the second half of the year.
He pointed to a newly announced partnership with Taiwan’s Chief Telecom, which operates the Taipei Internet Exchange. Under the partnership, Chief Telecom will offer GuardShield Pro, a DDoS protection service for enterprises in Taiwan that combines Radware’s AI-driven DDoS mitigation with Chief Telecom’s local network.
Margins, Cash Flow and Guidance
Avidan said first-quarter non-GAAP gross margin was 82.2%, compared with 82.4% in the prior-year period. He said the company experienced supply chain pressure, mainly from higher memory component costs, though the impact on gross margin was modest.
In response to Jefferies analyst Joe Gallo, Zisapel said Radware raised prices by 5% to 8% on some hardware platforms most affected by memory costs. He said the pricing changes will take effect at the end of the second quarter and that the company has not yet seen a change in buying behavior.
Operating income increased 4% year over year to $11 million, while operating margin declined 90 basis points to 13.8%. Avidan attributed the margin decline to a $2.6 million currency exchange impact, primarily from the strengthening of the Israeli shekel. At constant exchange rates, operating income would have been $13.6 million, up 28% year over year, he said.
Net income from continuing operations was $13.4 million, compared with $13.6 million a year earlier. Cash flow provided by continuing operations was $19.9 million, compared with $24.6 million in the prior-year quarter. Radware repurchased approximately $29.4 million of shares during the quarter and ended with about $434 million in cash equivalents, bank deposits and marketable securities.
For the second quarter of 2026, Avidan guided for revenue of $81 million to $82 million, non-GAAP operating expenses of $56 million to $57 million and non-GAAP diluted earnings per share of $0.28 to $0.29. He said the operating expense outlook reflects continued investment in innovation and go-to-market efforts, along with approximately $2 million of foreign exchange impact tied to U.S. dollar weakness.
About Radware (NASDAQ:RDWR)
Radware Ltd. provides cybersecurity and application delivery solutions designed to ensure the availability, performance and security of mission‐critical applications. Its product portfolio includes on‐premises and cloud‐based offerings such as Alteon application delivery controllers, DefensePro network behavior analysis for DDoS mitigation and AppWall web application firewall. The company's platforms use real‐time behavioral analysis, machine learning and automation to protect against distributed denial‐of‐service attacks, application layer threats and network intrusions.
Founded in 1997, Radware is co-headquartered in Tel Aviv, Israel, with a principal U.S.
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