Radware posts record Q2 revenue of $82.3m on cloud ARR surge
Radware (NASDAQ: RDWR) has reported second-quarter 2026 revenue of $82.3 million, a record for the Tel Aviv-based vendor and an 11% increase from the $74.1 million it posted in the same period of 2025. Cloud annual recurring revenue reached $103 million, up 22% year-on-year, crossing the $100 million threshold the company had been tracking as a milestone.
The Americas region was the strongest performer, contributing $37.2 million, up 24% year-on-year. APAC grew 9% to $17.8 million, while EMEA dipped 2% to $27.3 million, the only geography to decline. The company held $422.9 million in cash, deposits and marketable securities at the end of June, and generated $13 million in operating cash flow from continuing operations during the quarter.
Earnings and discontinued operations
GAAP net income from continuing operations came in at $3.9 million, or $0.09 per diluted share, down from $6.4 million in Q2 2025. The decline reflects significantly higher operating costs: research and development spend rose from $18.2 million to $23.8 million, and share-based compensation across the business reached $7.3 million for the quarter. On a non-GAAP basis, which strips out stock compensation, amortisation and certain other items, diluted earnings per share from continuing operations were $0.30, compared with $0.32 a year earlier.
A notable structural change is the classification of Radware's SkyHawk subsidiary as a discontinued operation from Q1 2026, which resulted in a $2.2 million loss being reported separately. Comparative figures for 2025 have been restated to reflect this. The company spent $48.2 million repurchasing its own shares in the first half of 2026, a programme that was not active in the equivalent 2025 period.
Roy Zisapel, president and chief executive, said the company had "continued to expand our security platform through innovation across cloud, application security, API Security, and DDoS protection, further strengthening our ability to address evolving customer requirements." Radware did not provide specific customer wins or contracted deal values alongside the results.
Market context
Radware operates in an increasingly crowded multi-cloud security market, where it competes across application delivery, DDoS mitigation, API security and web application firewall categories. The company faces competition from specialist vendors such as Akamai and Cloudflare, as well as security platforms built into the major hyperscalers. The 22% cloud ARR growth rate is a meaningful indicator of platform stickiness, but the sequential decline in non-GAAP operating income, from $11.4 million in Q2 2025 to $10.9 million, suggests cost discipline will be scrutinised by investors as R&D spend scales up.
The broader cybersecurity sector is experiencing sustained enterprise demand driven by expanding attack surfaces from AI workloads, proliferating APIs and persistent state-sponsored DDoS campaigns. Radware's positioning around AI-driven behavioural threat detection and end-to-end API security aligns with buying priorities that analysts consistently flag as growing budget lines. The company's EMEA softness is worth watching: the region has been subject to tightened procurement cycles and increased compliance overhead from NIS2 and DORA, which came into force across EU member states in late 2024 and early 2025 respectively. Vendors with strong local data-residency offerings and certified compliance postures tend to fare better in that environment.
Radware management will discuss Q3 2026 guidance on the earnings call held on 29 July. The company did not publish a formal Q3 outlook in its press release.