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For the third quarter, QLYS anticipates revenues between $185.5 million and $187.5 million. The Zacks Consensus Estimate for revenues stands at $186.5 million, indicating an improvement of 9.8% from the year-ago quarter’s revenues of $169.9 million.
Qualys expects non-GAAP earnings per share between $1.91 and $1.98. The consensus mark for third-quarter earnings has remained unchanged at $1.95 over the past 30 days. QLYS reported non-GAAP earnings of $1.86 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 10.8%.
Let’s see how things are shaping up for the upcoming announcement.
Qualys' third-quarter performance is likely to have benefited from growing demand for cybersecurity solutions as businesses face increasingly complex security threats. The growing use of artificial intelligence (AI) is making it easier for attackers to identify and exploit vulnerabilities. This is increasing the need for faster vulnerability detection, risk assessment and automated remediation, creating opportunities for Qualys' Enterprise TruRisk Platform.
The company's continued investment in AI-powered security solutions could also have supported customer demand. In the last reported quarter, Qualys introduced new capabilities, including InstaScan and TotalAI 2.0, to help organizations detect vulnerabilities faster and manage security risks across their AI infrastructure. Its AI-native Risk Operations Center (“ROC”) offering could help it win larger deals by combining risk detection, prioritization and remediation. The company also reported encouraging early adoption of its QFlex model, which gives customers greater flexibility to expand their use of Qualys' solutions.
Qualys' partner-led business is another potential growth driver. In the second quarter, channel revenues increased 22% year over year and accounted for 54% of total revenues compared with 49% in the prior-year quarter. International revenues grew 15%, outpacing the 8% growth in the United States. Continued strength in partner-led sales could have supported third-quarter revenues.
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, Qualys' third-quarter performance could have faced some challenges. The company's second-quarter net dollar expansion rate (NDR) of 105% remains relatively modest, indicating that existing customers are increasing their spending at a measured pace. The NDR of customers using ETM and Cyber Security Asset Management remained unchanged at 107% in the second quarter. This suggests that the company's newer solutions have yet to generate a significant acceleration in customer spending.
New business contributions could remain limited. Management expects moderate revenue growth from new customers in 2026 and assumes that NDR will remain around current levels. During the second-quarter earnings call, management also indicated that it was not seeing a meaningful acceleration in customer deal cycles. This led it to maintain a relatively cautious outlook for current billings growth in the second half of 2026.
Higher operating expenses may have weighed on profitability. Qualys has been investing in research and development and expanding its sales and marketing capabilities to support its newer solutions. Sales and marketing expenses increased 14% in the second quarter. Management expects full-year operating expenses to rise in the low teens, which could limit margin expansion.
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 case here.
Though Qualys carries a Zacks Rank #2, it has an Earnings ESP of -0.07%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering from the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases.
Hewlett Packard Enterprise Company (HPE - Free Report) is slated to report fourth-quarter fiscal 2026 results on Nov. 23. Hewlett Packard Enterprise has an Earnings ESP of +2.64% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hewlett Packard Enterprise’s fourth-quarter earnings is pegged at $1.28 per share, revised upward by a penny over the past 30 days. The consensus mark for earnings suggests a year-over-year surge of 106.5.% from the year-ago quarter’s reported figure.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank #2 at present. NVIDIA is slated to report third-quarter fiscal 2027 results on Nov. 17.
The Zacks Consensus Estimate for NVIDIA’s third-quarter earnings is pegged at $2.49 per share, up by a penny over the past 30 days. The consensus mark for earnings calls for a year-over-year jump of 91.5%.
Intuit, Inc. (INTU - Free Report) has an Earnings ESP of +0.20% and currently carries a Zacks Rank #3. Intuit is set to report first-quarter fiscal 2027 results on Nov. 19.
The Zacks Consensus Estimate for Intuit’s first-quarter earnings is pegged at $2.47 per share, up by a penny over the past 30 days. The consensus mark for earnings indicates a year-over-year decline of 26.1%.
View the Zacks #1 Rank List
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Qualys Gears Up to Report Q3 Earnings: What's in Store for the Stock?
Key Takeaways
Qualys, Inc. (QLYS - Free Report) is scheduled to report third-quarter 2026 results on Nov. 9, after market close.
For the third quarter, QLYS anticipates revenues between $185.5 million and $187.5 million. The Zacks Consensus Estimate for revenues stands at $186.5 million, indicating an improvement of 9.8% from the year-ago quarter’s revenues of $169.9 million.
Qualys expects non-GAAP earnings per share between $1.91 and $1.98. The consensus mark for third-quarter earnings has remained unchanged at $1.95 over the past 30 days. QLYS reported non-GAAP earnings of $1.86 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 10.8%.
Let’s see how things are shaping up for the upcoming announcement.
Qualys, Inc. Price and EPS Surprise
Qualys, Inc. price-eps-surprise | Qualys, Inc. Quote
Factors Likely to Influence Qualys’ Q3 Results
Qualys' third-quarter performance is likely to have benefited from growing demand for cybersecurity solutions as businesses face increasingly complex security threats. The growing use of artificial intelligence (AI) is making it easier for attackers to identify and exploit vulnerabilities. This is increasing the need for faster vulnerability detection, risk assessment and automated remediation, creating opportunities for Qualys' Enterprise TruRisk Platform.
The company's continued investment in AI-powered security solutions could also have supported customer demand. In the last reported quarter, Qualys introduced new capabilities, including InstaScan and TotalAI 2.0, to help organizations detect vulnerabilities faster and manage security risks across their AI infrastructure. Its AI-native Risk Operations Center (“ROC”) offering could help it win larger deals by combining risk detection, prioritization and remediation. The company also reported encouraging early adoption of its QFlex model, which gives customers greater flexibility to expand their use of Qualys' solutions.
Qualys' partner-led business is another potential growth driver. In the second quarter, channel revenues increased 22% year over year and accounted for 54% of total revenues compared with 49% in the prior-year quarter. International revenues grew 15%, outpacing the 8% growth in the United States. Continued strength in partner-led sales could have supported third-quarter revenues.
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, Qualys' third-quarter performance could have faced some challenges. The company's second-quarter net dollar expansion rate (NDR) of 105% remains relatively modest, indicating that existing customers are increasing their spending at a measured pace. The NDR of customers using ETM and Cyber Security Asset Management remained unchanged at 107% in the second quarter. This suggests that the company's newer solutions have yet to generate a significant acceleration in customer spending.
New business contributions could remain limited. Management expects moderate revenue growth from new customers in 2026 and assumes that NDR will remain around current levels. During the second-quarter earnings call, management also indicated that it was not seeing a meaningful acceleration in customer deal cycles. This led it to maintain a relatively cautious outlook for current billings growth in the second half of 2026.
Higher operating expenses may have weighed on profitability. Qualys has been investing in research and development and expanding its sales and marketing capabilities to support its newer solutions. Sales and marketing expenses increased 14% in the second quarter. Management expects full-year operating expenses to rise in the low teens, which could limit margin expansion.
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 case here.
Though Qualys carries a Zacks Rank #2, it has an Earnings ESP of -0.07%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering from the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases.
Hewlett Packard Enterprise Company (HPE - Free Report) is slated to report fourth-quarter fiscal 2026 results on Nov. 23. Hewlett Packard Enterprise has an Earnings ESP of +2.64% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hewlett Packard Enterprise’s fourth-quarter earnings is pegged at $1.28 per share, revised upward by a penny over the past 30 days. The consensus mark for earnings suggests a year-over-year surge of 106.5.% from the year-ago quarter’s reported figure.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank #2 at present. NVIDIA is slated to report third-quarter fiscal 2027 results on Nov. 17.
The Zacks Consensus Estimate for NVIDIA’s third-quarter earnings is pegged at $2.49 per share, up by a penny over the past 30 days. The consensus mark for earnings calls for a year-over-year jump of 91.5%.
Intuit, Inc. (INTU - Free Report) has an Earnings ESP of +0.20% and currently carries a Zacks Rank #3. Intuit is set to report first-quarter fiscal 2027 results on Nov. 19.
The Zacks Consensus Estimate for Intuit’s first-quarter earnings is pegged at $2.47 per share, up by a penny over the past 30 days. The consensus mark for earnings indicates a year-over-year decline of 26.1%.