Qualys (QLYS)
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-09
$170.17-0.09%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-09
Broken: Primary pillar broken — EPS meets or exceeds $5.5 for FY26: FY26 EPS guidance $5.76-$5.90 vs $5.50 target.
Qualys grows revenue about 8-9% yearly, backed by raised guidance. Profit margins improve with operating income rising from $51.8M to $60.9M in one year. The company is profitable and trades at a low PE of 21 versus peers at 47. Free cash flow yield is steady at 5%.
Revenue growth could slow below 7% if market competition intensifies. Profit margins may compress if cost controls weaken. The stock trades with elevated risk and a PEG of 7.25, suggesting high expectations.
The market prices in about 9% revenue growth and values the stock roughly 9% below our fair value near $171. Our fair value is 71% above the Street median, reflecting confidence in Qualys' growth and profitability.
Breaks if: EPS guidance falls below $5.3 for FY26
Breaks if: Net income falls below $48M in FY26-Q1
Breaks if: Operating income falls below $55M in FY26-Q1
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent revenue and profit growth. The current thesis state is intact, supported by recent earnings beats and management's commitment to enhancing financial performance.
The valuation suggests that QLYS is priced cheaply compared to its peers, with a slight expectations gap indicating that the market has low expectations for future performance. The current market sentiment does not reflect significant fragility, which supports a justified valuation.
Management is on track to increase revenue growth, enhance operating income, and improve net income and earnings per share (EPS). Despite a low probability of missing earnings expectations, there is caution due to recent misses in the industry.
The long-term thesis hinges on external factors such as potential interest rate cuts by the Federal Reserve and continued strong performance from sector leaders like Microsoft and Oracle. A reversal in guidance could negatively impact credibility and stock performance.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the view of increased revenue growth. Additionally, Qualys raised its revenue outlook and EPS guidance, reinforcing positive momentum. There are no current threats impacting the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 7% in FY26
Continue to grow revenues year-over-year through innovation, expanded solutions, and market adoption.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $159.2 million in 2024-Q4 to $182.2 million in 2026-Q2, representing consistent year-over-year growth of about 10-11%. Management has reiterated confidence in reaccelerating long-term growth, and the trajectory is delivering solid revenue increases.
“Q2 Revenue Growth of 11% Year-Over-Year Raises 2026 Revenue Guidance”
“Revenues for Q1 2026 increased by 10% to $175.6 million compared to Q1 2025.”
“Revenues for Q4 2025 increased by 10% to $175.3 million compared to Q4 2024.”
“Management expects revenues for Q3 2025 to be in the range of $164.5 million to $167.5 million.”
Overall, QLYS maintains a solid operational foundation, but external market conditions and management execution will be crucial for its trajectory over the next few years. Not investment advice.