Radware (RDWR) opened Q1 2026 with revenue of US$79.8 million and basic EPS of US$0.14, while earnings from discontinued operations were a loss of US$2.6 million. The company reported quarterly revenue increasing from US$72.1 million and EPS of US$0.10 in Q1 2025 to a range of roughly US$74 million to US$80 million and EPS between US$0.10 and US$0.14 from Q2 to Q4 2025. Over the same period, trailing 12 month earnings grew by 70.5%, and net margin improved from 4.1% to 6.4%. That combination of higher profitability and firmer margins is likely to be front of mind for investors considering what Q1 indicates for the broader company narrative.

See our full analysis for Radware.

With the latest results on the table, the next step is to see how these numbers align with the prevailing narratives around Radware, highlighting where the data supports the story and where it challenges it.

70.5% earnings growth outpaces 7.4% revenue rise

• Over the last 12 months, revenue was US$309.6 million, growing at 7.4% per year, while earnings grew 70.5% to US$19.8 million. This points to much stronger profit growth than top line growth.
• For those taking a bullish view, this faster earnings growth lines up with higher net income each quarter, from US$2.5 million in Q4 2024 to US$6.1 million in Q1 2026. Over the same span, quarterly revenue moved from US$73.0 million to US$79.8 million, suggesting the business has been turning a relatively modest revenue increase into a much larger step up in profit.

Margins at 6.4% back higher earnings quality

• The trailing net profit margin sits at 6.4% compared with 4.1% last year, and Q1 2026 net income of US$6.1 million on US$79.8 million of revenue is consistent with that higher margin level over the recent period.
• Investors arguing that profitability is improving can point to this margin shift alongside rising trailing basic EPS from US$0.14 in Q4 2024 to US$0.46 in the latest 12 month period. At the same time, the presence of a US$2.6 million loss from discontinued operations in Q1 2026 shows that not all parts of the business are contributing in the same way, which is an area optimists may need to keep in view.

Rich 60.3x P/E against slower 7.4% revenue growth

• The stock trades on a trailing P/E of 60.3x compared with a peer average of 17.9x and a US software industry average of 29.3x. The DCF fair value of US$21.37 sits below the current share price of US$28.36, and revenue growth of 7.4% per year trails the cited US market rate of 11.4% per year.
• Bears highlight that this combination of a premium P/E multiple, a share price above DCF fair value and revenue growth running behind the broader US market points to a valuation that is sensitive to any change in earnings momentum. This is particularly relevant given that trailing EPS of US$0.46 is being capitalized at a much higher level than peers and the sector.

Curious how numbers like a 60.3x P/E and 70.5% earnings growth are shaping broader views on this stock right now? 📊 Read the what the Community is saying about Radware.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Radware's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this combination of stronger earnings, a rich P/E and active debate feels mixed, treat it as a prompt to review the data yourself and move promptly to your own view, starting with the 1 key reward

See What Else Is Out There

Radware combines 7.4% revenue growth with a 60.3x P/E and a share price above DCF fair value, which makes the current valuation look demanding.

If that kind of rich pricing gives you pause, compare it with companies that screen as potentially mispriced by fundamentals and start with the 51 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.