Qualys Posts 10.1% Q4 Revenue Growth to $175.3M, EPS Beats Estimates
Qualys delivered Q4 sales of $175.3 million, up 10.1% year-on-year, beating the $173.2 million consensus, while non-GAAP EPS of $1.87 topped estimates by 4.9% and operating margin rose to 33.6%. Management highlighted AI-driven risk management adoption and a partner-led channel contributing 51% of revenue as key growth drivers, although FY2026 EPS guidance of $7.31 narrowly missed forecasts.
1. Q4 Financial Performance
Qualys reported Q4 CY2025 revenue of $175.3 million, a 10.1% increase year-on-year and 1.2% above the $173.2 million consensus. Non-GAAP EPS came in at $1.87, 4.9% ahead of the $1.78 estimate, supported by an operating margin lift to 33.6% from 31% a year ago. Billings reached $204.9 million, up 5.6%, and ARR stood at $697 million, up 9.5%.
2. Growth Drivers
Management cited strong uptake of its agentic AI-powered risk management platform and expanding partner ecosystem as primary growth catalysts. Channel partners accounted for 51% of total revenue, outpacing direct sales, while new orchestration, automation features and federal sector FedRAMP High authorizations further bolstered large-customer upsells and international momentum.
3. Outlook and Guidance
For Q1 CY2026, Qualys forecast revenue of $173.5 million, roughly in line with analyst estimates, and projected FY2026 adjusted EPS of $7.31, slightly missing consensus by 1.3%. Leadership emphasized cautious optimism, prioritizing increased ETM platform adoption, partner certifications, and federal expansion while monitoring AI feature rollout and competitive pressures.