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Qualys reported Q2 FY2026 revenue of $182.2 million, above the $178.5 million consensus and up from $164.1 million a year earlier. Adjusted diluted earnings per share were $1.98, above the $1.78 consensus. Revenue also exceeded the company’s own Q2 guidance of $177.5 million to $179.5 million.
The company’s filing attributed the revenue increase to demand for its subscription services and said existing customers accounted for 97% of the increase. CFO Joo Mi Kim said channel-partner revenue grew 22%, while direct revenue was largely unchanged from a year earlier.
Qualys reported a gross margin of 83.4%, compared with 82.4% a year earlier, and an operating margin of 34.0%, compared with 31.3%. Diluted EPS rose to $1.50 from $1.29. Free cash flow was $55.9 million, up from $32.4 million; Kim attributed the change in its quarterly margin partly to working-capital fluctuations. She said Qualys repurchased $76.8 million of shares during the quarter.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $182.2 million | $164.1 million | 11.0% |
| Diluted EPS | $1.50 | $1.29 | 16.3% |
| Gross margin | 83.4% | 82.4% | 1.0 percentage point |
| Operating margin | 34.0% | 31.3% | 2.6 percentage points |
| Free cash flow | $55.9 million | $32.4 million | 72.3% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.98 | $1.78 | Beat by 11.2% |
| Revenue | $182.2 million | $178.5 million | Beat by 2.06% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue | Q2 FY2026 | $177.5 million–$179.5 million | $182.2 million | Above the guide |
What management said on the call
CEO Sumedh Thakar said customers are discussing how to detect vulnerabilities, confirm which are exploitable and fix them with less manual work. He introduced InstaScan, which he said uses information already collected by Qualys sensors to identify exposure without a new scan. He also described TotalAI 2.0 as a way for customers to identify AI activity and security gaps across their infrastructure.
Thakar said Qualys is trying to increase adoption of Enterprise TruRisk Management (ETM) among existing vulnerability-management customers. He cited customer upsells using QFlex, which lets customers commit across the platform while shifting spending as their needs change. CFO Joo Mi Kim said the company’s overall net dollar expansion rate was 105%, up from 104% in the previous quarter, and that channel partners contributed 54% of Q2 revenue.
Asked about demand for autonomous remediation, Thakar said some opportunities had accelerated, but customers still needed to complete proof-of-concept work and consider budgets. On enterprise buying, he said organizations must “work with different stakeholders and then look at the budget.” He characterized the discussions as early-stage and said Qualys was building its pipeline.
Thakar also said ETM can incorporate data from other vendors’ tools, allowing customers to prioritize findings across their environments. Asked about the federal market, he said it was not a large part of the business, but that Qualys was investing in opportunities there.
Kim said Q2 non-GAAP operating expenses rose 8% to $73.2 million, driven by sales and marketing investment. She attributed the quarterly free-cash-flow margin change to working-capital fluctuations. Asked about billings, she said trailing-12-month growth reached 10%, versus 8.5% in the prior quarter, and that the company had increased revenue guidance. Thakar also said he had appointed Shailesh Athalye chief product solutions officer and Nathan Smolenski chief information security officer.
Guidance
Qualys raised its FY2026 revenue guidance to $732.0 million to $738.0 million, from $721 million to $727 million. Kim said the outlook assumes the net dollar expansion rate remains at current levels and includes a moderate contribution from new business.
Qualys also raised its FY2026 non-GAAP diluted EPS guidance to $7.74 to $7.88, from $7.44 to $7.65. Its GAAP diluted EPS guidance rose to $5.76 to $5.90, from $5.40 to $5.61.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, non-GAAP | FY2026 | 20.0% | — | New |
| Tax rate, GAAP | FY2026 | 21.0% | — | New |
| EPS, non-GAAP | FY2026 | $7.74–$7.88 | $7.44–$7.65 | Raised |
| EPS, GAAP | FY2026 | $5.76–$5.90 | — | New |
| Revenue | FY2026 | $732.0 million–$738.0 million | $721.0 million–$727.0 million | Raised |
| Tax rate, non-GAAP | Q3 FY2026 | 20.0% | — | New |
| Tax rate, GAAP | Q3 FY2026 | 21.0% | — | New |
| EPS, non-GAAP | Q3 FY2026 | $1.91–$1.98 | Q2 FY2026: $1.73–$1.80 | Raised |
| EPS, GAAP | Q3 FY2026 | $1.43–$1.50 | — | New |
| Revenue | Q3 FY2026 | $185.5 million–$187.5 million | Q2 FY2026: $177.5 million–$179.5 million; reported $182.2 million | Raised |
| Capex, non-GAAP | Q3 FY2026 | $1.0 million–$2.5 million | Q2 FY2026: $1.2 million–$3.2 million | Cut |
| Capex, non-GAAP | FY2026 | $8.0 million–$12.0 million | $8.0 million–$12.0 million | Held |
| EBITDA, Non Gaap, margin | FY2026 | Qualys expects its non-GAAP EBITDA margin to be in the mid-40s in FY2026. | — | — |
| Bookings, Etm Csam Patch Management Totalcloud | FY2026 | Qualys expects its differentiated products to contribute a greater share of bookings in FY2026. | — | — |
| Operating expenses, Non Gaap Sales and Marketing Percent of Revenue | FY2026 | Qualys expects sales and marketing investment to increase as a percentage of revenue in FY2026. | — | — |
| EBITDA, Non Gaap Margin | FY2026 | Qualys expects FY2026 non-GAAP EBITDA margin in the mid-40s. | — | — |