What Happened?
Shares of cybersecurity cloud platform provider Qualys (NASDAQ: QLYS) jumped 18.1% in the morning session after the company reported third-quarter 2025 financial results that surpassed Wall Street's expectations for revenue and profit. Qualys announced revenue of $169.9 million, up 10.4% from the same period last year, beating forecasts. The company’s adjusted earnings per share came in at $1.86, which was 19.2% above analysts' consensus estimates. Adding to the positive news, guidance for the next quarter’s revenue was optimistic at $173 million at the midpoint, also ahead of estimates. Furthermore, management raised its full-year adjusted EPS guidance, signaling confidence in its continued performance. The company also demonstrated improved profitability, with its operating margin expanding significantly year over year.
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What Is The Market Telling Us
Qualys’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for Qualys and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 20.6% on the news that the company reported a "beat and raise" quarter. Qualys results below past most of the key top-line metrics we track, including billings, EBITDA, and adjusted EPS. Adding to the good news is that revenue guidance for next quarter came in above expectations, and the company also raised full-year EPS guidance. The results suggest the company is doing a great job at meeting the needs of its customers, which should help drive strong customer retention and expansion. The recent launch of Qualys' TruRisk Eliminate for security remediation and Qualys TotalAI solutions also demonstrate the company's focus on adding value to its customers. Overall, this was a strong quarter for the company, demonstrating the company's strengths in the competitive security space.
Qualys is up 4.9% since the beginning of the year, and at $145.74 per share, it is trading close to its 52-week high of $159.23 from November 2024. Investors who bought $1,000 worth of Qualys’s shares 5 years ago would now be looking at an investment worth $1,548.
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