Radware Ltd reported record revenue of $82.3 million [1] for the second quarter of 2026, marking an 11% increase year over year [2].
The results signal a pivot toward cloud-based security models as the company attempts to scale its recurring revenue streams. This transition reflects a broader industry shift where enterprises are migrating from traditional hardware appliances to flexible, cloud-native security architectures to combat evolving digital threats.
The company's cloud annualized recurring revenue, or ARR, reached $103 million [3]. This milestone means the cloud security business surpassed the $100 million threshold during the quarter [4]. According to reports, this growth was driven primarily by cloud security, API protection, and on-premises DDoS mitigation [5].
Regional performance showed significant variance. Revenue in the Americas jumped 24% [6], a key driver for the overall quarterly increase. However, the company also faced challenges regarding gross margin and performance in other specific regions [7].
Radware's growth strategy relies on a diversified security portfolio. The surge in API protection indicates a rising demand for securing the interfaces that allow different software programs to communicate. Similarly, the continued reliance on on-premises DDoS mitigation suggests that some large-scale enterprises still require physical infrastructure to prevent massive traffic attacks from crashing their networks [5].
Executives said the financial results in a series of releases earlier this month, following a scheduled investor call on July 29 [8]. The company continues to integrate its cloud services with existing hardware solutions to maintain a hybrid security posture for its global client base [7].
“Radware’s revenue rose 11% year over year to $82.3 million”
Radware's achievement of over $100 million in cloud ARR indicates the company has reached a critical scale in its transition to a subscription-based model. While the 24% growth in the Americas shows strong market penetration in the U.S. and Canada, the mentioned struggles with gross margins suggest that the cost of delivering these cloud services is currently impacting profitability. The company is now balancing high-growth cloud adoption against the operational costs of maintaining a global security infrastructure.
