Qualys Gears Up to Report Q2 Earnings: What's in Store for the Stock?

Qualys, Inc. QLYS is scheduled to report second-quarter 2025 earnings after market close on Aug. 5.

For the second quarter, QLYS anticipates revenues between $159.7 million and $162.7 million. The Zacks Consensus Estimate for revenues is pinned at $161.2 million, indicating an improvement of 8.4% from the year-ago quarter’s revenues of $148.7 million.

Qualys expects non-GAAP earnings per share between $1.40 and $1.50. The consensus mark for second-quarter earnings has remained unchanged at $1.47 over the past 60 days, suggesting a decline of 3.3% from the year-ago quarter’s $1.52.

Qualys has a strong history of beating earnings estimates. The stock surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 16.6%.

Let’s see how things are shaping up for the upcoming announcement.

Factors Likely to Influence Qualys’ Q2 Results

Qualys’ second-quarter performance is likely to have been aided by the rising demand for security and networking products amid the growing hybrid working trend. Accelerated digital transformations by organizations are also expected to have fueled the demand for QLYS’ cloud-based security solutions.

Qualys' recurring subscription-based business model has been providing relative stability to its top line amid post-pandemic disruptions. The company expects to drive durable top-line growth and leverage its highly scalable model to maintain strong cash flow and industry-leading profitability.

QLYS' ability to attract new customers and retain existing ones underscores its strong market positioning and value proposition. For the last few quarters, Qualys has been able to close a significant number of six-figure deals. This trend is likely to have continued in the to-be-reported quarter, boosting its total revenues.

However, enterprises have been postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This might have hurt Qualys’ overall financial performance in the second quarter. The top line is also likely to have been affected by customer transition from Qualys on Microsoft Defender to TotalCloud CNAPP.

What Our Model Says About QLYS’ Q2 Earnings

Our proven model does not conclusively predict an earnings beat for QLYS this season. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the exact case here.

Though Qualys carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Bumble BMBL has an Earnings ESP of +37.01% and presently sports a Zacks Rank #1.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Bumble is set to report second-quarter 2025 results on Aug. 6. The Zacks Consensus Estimate for the second-quarter earnings is pegged at 37 cents per share, revised upward by a penny over the past 30 days. Estimates for Bumble’s EPS for the second quarter indicate year-over-year growth of 68.2%.

DoorDash DASH is set to report second-quarter 2025 results on Aug. 6. The stock has an Earnings ESP of +3.03% and presently sports a Zacks Rank #1.

The Zacks Consensus Estimate for DoorDash’s second-quarter earnings has been revised upward by a penny to 42 cents per share over the past 60 days. The consensus estimate for DoorDash’s EPS for the second quarter implies a robust improvement from the year-ago quarter’s loss of 38 cents.

MKS Inc. MKSI is set to report second-quarter 2025 results on Aug. 6. The stock has an Earnings ESP of +1.33% and presently sports a Zacks Rank #1.

The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $1.61 per share, which has been revised upward by a penny over the past 30 days. Estimates for MKS’ second-quarter EPS call for year-over-year growth of 5.2%.

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This article originally published on Zacks Investment Research (zacks.com).

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