Qualys Gears Up to Report Q4 Earnings: What to Expect From the Stock?

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

For the fourth quarter, QLYS anticipates revenues between $172 million and $174 million. The Zacks Consensus Estimate for revenues stands at $173 million, indicating an improvement of 8.7% from the year-ago quarter’s revenues of $159.2 million.

Qualys expects non-GAAP earnings per share between $1.73 and $1.80. The consensus mark for fourth-quarter earnings has remained unchanged at $1.78 over the past 60 days. QLYS had reported non-GAAP earnings of $1.60 per share in the year-ago quarter.

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’ Q4 Results

Qualys’ fourth-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 ongoing macroeconomic uncertainties. 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 fourth quarter. The top line is also likely to have been affected by customer transition from Qualys on Microsoft Defender to TotalCloud CNAPP (Cloud-Native Application Protection Platform).

Additionally, Qualys is continually investing in broadening its capabilities to survive in the highly competitive cybersecurity market. Over the past few years, the company has invested heavily in research and development to expand its product portfolio as well as enhance its sales and marketing capabilities, particularly by increasing its sales force. This is likely to have weighed on its bottom-line performance in the to-be-reported quarter.

What Our Model Says About QLYS’ Q4 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 indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:

IPG Photonics IPGP is set to report fourth-quarter 2025 results on Feb. 12. It has an Earnings ESP of +15.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IPG Photonics’ fourth-quarter earnings is pegged at 25 cents per share, up by a penny over the past 30 days, indicating an increase of 38.9% from the year-ago quarter’s reported figure. Shares of IPG Photonics have soared 31.7% over the past year.

MKS Inc. MKSI is set to report fourth-quarter 2025 results on Feb. 17. It has an Earnings ESP of +2.68% and sports a Zacks Rank #1 at present.

The Zacks Consensus Estimate for MKS’ fourth-quarter earnings is pegged at $2.45 per share, up by 20 cents over the past 30 days, implying a rise of approximately 14% from the year-ago quarter’s reported figure. Shares of MKS have surged 111.8% over the past 12 months.

Analog Devices, Inc. ADI is slated to report first-quarter fiscal 2026 results on Feb. 18. It has an Earnings ESP of +2.98% and carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Analog Devices’ first-quarter earnings is pegged at $2.30 per share, revised upward by 2 cents over the past 30 days, calling for a surge of 41.1% from the year-ago quarter’s reported figure. Shares of Analog Devices have soared 51.5% over the past year.

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

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