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Qualys to Report Q3 Earnings: What's in Store for the Stock?

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Key Takeaways

  • QLYS expects Q3 revenues of $164.5M-$167.5M, while the consensus estimate predicts $165.8M.
  • QLYS projects Q3 EPS in the $1.50-$1.60 range, while the consensus estimate is pegged at $1.56.
  • Cybersecurity demand and six-figure deals may lift sales, but higher expenses could weigh on profit.

Qualys, Inc. (QLYS - Free Report) is scheduled to report third-quarter 2025 earnings after market close on Nov. 4.

For the third quarter, QLYS anticipates revenues between $164.5 million and $167.5 million. The Zacks Consensus Estimate for revenues is pinned at $165.8 million, indicating an improvement of 7.7% from the year-ago quarter’s revenues of $153.9 million.

Qualys expects non-GAAP earnings per share between $1.50 and $1.60. The consensus mark for third-quarter earnings has been revised downward by a penny to $1.56 over the past 60 days. QLYS had reported non-GAAP earnings of $1.56 per share in the year-ago quarter.

Qualys has a strong history of beating earnings estimates. The stock surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 16.1%.

Qualys, Inc. Price and EPS Surprise

Qualys, Inc. Price and EPS Surprise

Qualys, Inc. price-eps-surprise | Qualys, Inc. Quote

Let’s see how things are shaping up for the upcoming announcement.

Factors Likely to Influence Qualys’ Q3 Results

Qualys’ third-quarter performance is likely to have been aided by the rising demand for security and networking products amid the growing hybrid working trend. Accelerated digital transformations by organizations are also expected to have fueled the demand for QLYS’ cloud-based security solutions.

Qualys' recurring subscription-based business model has been providing relative stability to its top line amid post-pandemic disruptions. The company expects to drive durable top-line growth and leverage its highly scalable model to maintain strong cash flow and industry-leading profitability.

QLYS' ability to attract new customers and retain existing ones underscores its strong market positioning and value proposition. For the last few quarters, Qualys has been able to close a significant number of six-figure deals. This trend is likely to have continued in the to-be-reported quarter, boosting its total revenues.

However, enterprises have been postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This might have hurt Qualys’ overall financial performance in the third quarter. The top line is also likely to have been affected by customer transition from Qualys on Microsoft Defender to TotalCloud CNAPP (Cloud-Native Application Protection Platform).

Additionally, Qualys is continually investing in broadening its capabilities to survive in the highly competitive cybersecurity market. Over the past few years, the company has invested heavily in research and development to expand its product portfolio as well as enhance its sales and marketing capabilities, particularly by increasing its sales force. This is likely to have weighed on its bottom-line performance in the to-be-reported quarter.

What Our Model Says About QLYS’ Q3 Earnings

Our proven model does not conclusively predict an earnings beat for QLYS this season. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the exact case here.

Though Qualys carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:

StoneCo (STNE - Free Report) is set to report third-quarter 2025 results on Nov. 6. It has an Earnings ESP of +7.81% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for StoneCo’s third-quarter earnings is pegged at 43 cents per share, up by 2 cents over the past 30 days, indicating an increase of 22.9% from the year-ago quarter’s reported figure. Shares of StoneCo have soared 138.5% year to date.

Fair Isaac (FICO - Free Report) is set to report fourth-quarter fiscal 2025 results on Nov. 5. It has an Earnings ESP of +0.46% and sports a Zacks Rank #1 at present.

The Zacks Consensus Estimate for Fair Isaac’s fourth-quarter earnings is pegged at $7.34 per share, up by 2 cents over the past 30 days, implying a rise of 12.2% from the year-ago quarter’s reported figure. Shares of Fair Isaac have plunged 16.7% year to date.

Lumentum (LITE - Free Report) is slated to report first-quarter fiscal 2026 results on Nov. 4. It has an Earnings ESP of +2.14% and carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Lumentum’s first-quarter earnings is pegged at $1.03 per share, unchanged over the past 60 days, calling for a surge of 472.2% from the year-ago quarter’s reported figure. Shares of Lumentum have soared 140.1% year to date.

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