JFrog Q1 earnings beat estimates on higher cloud revenue

Jfrog

07/05/2026 21:39

Overview

US software supply chain platform's Q1 revenue rose 26%, beating analyst expectations

Adjusted EPS for Q1 was $0.27, beating analyst expectations

Company authorized up to $300 mln share repurchase program

Outlook

JFrog sees Q2 revenue between $154 mln and $156 mln

Company expects Q2 non-GAAP net income per diluted share of $0.23 to $0.25

JFrog forecasts FY26 revenue between $628 mln and $632 mln

Result Drivers

CLOUD BUSINESS - Co said Q1 cloud revenue grew 50% year-over-year, driven by demand from development organizations using AI-powered coding agents

SECURITY DEMAND - Co said momentum in its security business was due to customers standardizing on JFrog to manage and secure binaries amid escalating supply chain threats

CUSTOMER EXPANSION - Co reported increase in customers with ARR over $1 mln and higher net dollar retention, indicating expansion within existing accounts and new customer acquisitions

Company press release: ID:nBw3mcDCya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$154 mln
$147.46 mln (20 Analysts)
Q1 Adjusted EPS
Beat
$0.27
$0.21 (21 Analysts)
Q1 Adjusted Operating Income
Beat
$32.90 mln
$25.46 mln (20 Analysts)
Q1 Adjusted Gross Margin
83.80%
Q1 Adjusted Gross Profit
$129 mln
Q1 Adjusted Operating Margin
21.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 1 "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 $70.00, about 30.1% above its May 6 closing price of $53.81

The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 62 three months ago

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.)