Radware Ltd (NASDAQ:RDWR) Stock Falls After Q3 2025 Revenue Miss

Radware Ltd (NASDAQ:RDWR) announced its financial results for the third quarter of 2025, delivering a performance that presented a mixed picture for investors. The company's earnings per share managed to surpass analyst expectations, while its top-line revenue fell short of consensus forecasts. This divergence was immediately reflected in the stock's pre-market trading activity, which showed a significant downward move.

Earnings and Revenue Analysis

The company's core profitability metric proved resilient in the quarter. However, this strength on the bottom line was counterbalanced by a revenue miss.

• Non-GAAP Earnings Per Share (EPS): Reported $0.28, exceeding the analyst estimate of $0.2764.
• Total Revenue: Reported $75.31 million, coming in below the analyst consensus estimate of $76.81 million.

The ability to beat earnings estimates despite a revenue shortfall often points to effective cost management or other operational efficiencies. Investors, however, appeared to focus more heavily on the revenue miss, interpreting it as a potential signal of softer demand or competitive pressures impacting top-line growth.

Market Reaction

The immediate market response to the earnings report was decisively negative. In pre-market trading, Radware's stock was down approximately 5.5%, indicating investor disappointment primarily with the revenue figures. This reaction overshadowed the positive earnings surprise and suggests the market was prioritizing sales growth in its valuation of the company for the quarter.

Recent Performance Context

Placing the earnings reaction within a broader short-term context provides further insight into investor sentiment.

• Past Week: The stock was relatively flat, showing a minimal gain of about 1.3%.
• Past Two Weeks: Performance was positive, with an increase of roughly 3.7%.
• Past Month: The stock was nearly unchanged, with a slight gain of about 0.5%.

The sharp pre-market decline following the earnings release represents a clear departure from the stock's recent stability and upward trend over the preceding weeks, underscoring the significance of the quarterly results as a market-moving event.

Looking Ahead

While the third-quarter results are now known, investor attention will quickly shift to the company's future trajectory. Analyst estimates for the upcoming quarter and the full year provide a benchmark against which Radware's own guidance, if any was provided in the press release, can be measured. According to the provided data, the consensus outlook is as follows:

• Q4 2025 Revenue Estimate: $79.64 million
• Q4 2025 EPS Estimate: $0.292
• Full-Year 2025 Revenue Estimate: $305.5 million
• Full-Year 2025 EPS Estimate: $1.13

The press release highlighted the company's third-quarter financial results, though a specific quantitative financial outlook for the coming periods was not detailed in the provided summary. The absence of forward guidance in this instance is a neutral factor and does not inherently explain the negative market reaction, which is more directly tied to the Q3 revenue miss.

For a more detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

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Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the stock mentioned. All investment decisions should be based on your own research, financial circumstances, and risk tolerance.