JFrog Q2 revenue, profit beat expectations driven by strong cloud adoption

JFrog

06/08/2026 21:35

Overview
Software supply chain platform's Q2 revenue rose 29% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company's cloud revenue grew 53% yr/yr, driven by demand for security solutions

Outlook
JFrog sees Q3 revenue between $164 mln and $166 mln
Company expects Q3 non-GAAP net income per diluted share between $0.22 and $0.24
JFrog forecasts 2026 revenue between $648 mln and $652 mln

Result Drivers
CLOUD ADOPTION - Co said strong cloud adoption drove Q2 revenue growth
SECURITY DEMAND - Co attributed higher net dollar retention and revenue growth to demand for software supply chain security solutions
AI IMPACT - Co said AI coding agents are accelerating software development, increasing need for trusted security and governance

Company press release: ID:nBw7nxq88a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$163.80 mln
$155.64 mln (21 Analysts)
Q2 Adjusted EPS
Beat
$0.27
$0.24 (22 Analysts)
Q2 Adjusted Operating Income
Beat
$32.60 mln
$28.68 mln (21 Analysts)
Q2 Adjusted Gross Margin
 
83.20%
 
Q2 Adjusted Gross Profit
 
$136.20 mln
 
Q2 Adjusted Operating Margin
 
19.90%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Jfrog Ltd is $95.00, about 12.4% above its August 5 closing price of $84.52
The stock recently traded at 80 times the next 12-month earnings vs. a P/E of 48 three months ago

Reuters Recommended Reads
Aug 6 - Datadog Q2 revenue beats on large customer growth, AI adoption
Aug 4 - Qualys beats Q2 expectations, hikes FY forecast
Aug 6 - China launches cybersecurity review into Palo Alto Networks products

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)