Qualys posted a strong second quarter, with results surpassing market expectations and prompting a notably positive market reaction. Management attributed the quarter’s performance to heightened demand for its AI-native risk operations platform and new capabilities like InstaScan, which speeds vulnerability detection and remediation. CEO Sumedh Thakar emphasized that “the urgency behind [AI-driven] conviction continues to intensify,” pointing to the rapid adoption of Enterprise TruRisk Management (ETM) and agent-based automation as key contributors. Growth was also supported by increased channel partner activity and robust international expansion.
Is now the time to buy QLYS? Find out in our full research report (it’s free for active Edge members).
Qualys (QLYS) Q2 CY2026 Highlights:
- Revenue: $182.2 million vs analyst estimates of $178.6 million (11% year-on-year growth, 2% beat)
- Adjusted EPS: $1.98 vs analyst estimates of $1.78 (10.9% beat)
- Adjusted EBITDA: $83.78 million vs analyst estimates of $77.45 million (46% margin, 8.2% beat)
- The company lifted its revenue guidance for the full year to $735 million at the midpoint from $724 million, a 1.5% increase
- Management raised its full-year Adjusted EPS guidance to $7.81 at the midpoint, a 3.5% increase
- Operating Margin: 34%, up from 31.3% in the same quarter last year
- Annual Recurring Revenue: $728.7 million (11% year-on-year growth, beat)
- Billings: $175.3 million at quarter end, up 17.3% year on year
- Market Capitalization: $6.43 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Qualys’s Q2 Earnings Call
- William Kingsley Crane (Canaccord): Asked how the surge in AI-generated vulnerabilities is reflected in the pipeline and asset-based pricing. CEO Sumedh Thakar explained that urgency for autonomous remediation is driving more proof-of-concept activity, with increased customer conversations and pilots underway but most demand still in early stages.
- Jonathan Ho (William Blair): Inquired whether ETM adoption is driven by the need to cover more assets or by fundamental changes in patch management. Thakar clarified that customers seek to remediate critical threats quickly across all assets, using ETM for multi-vendor integration and prioritization.
- Patrick Edwin Colville (Scotiabank): Questioned the sustainability and drivers of raised long-term growth targets. Thakar emphasized that continued platform innovation and autonomous remediation capabilities build customer confidence for double-digit growth, aided by recent customer adoption metrics.
- Rudy Kessinger (D.A. Davidson): Asked about balancing growth and profitability, specifically willingness to reinvest margins to accelerate expansion. CFO Joo Mi Kim and Thakar said partner-led growth and targeted sales investments allow for scaling without sacrificing efficiency, but spending will increase as opportunities arise.
- Junaid Siddiqui (Truist): Queried if exploit validation tools like TruConfirm are becoming the main entry point for ETM deployments. Thakar responded that validation significantly narrows the scope of vulnerabilities requiring remediation, making automated solutions more practical and attractive to customers.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of ETM and QFlex adoption among existing and new enterprise customers, (2) progress in converting federal pipeline opportunities into revenue, and (3) continued expansion of partner-led sales channels and international markets. The rollout and customer uptake of new AI-native platform features will also serve as key indicators of execution.
Qualys currently trades at $184.39, up from $161.06 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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