TLDR
- JFrog reported Q1 adjusted EPS of $0.27, beating the $0.22 forecast, with revenue of $154M vs. $147.4M expected
- Full-year 2026 guidance raised on both EPS and revenue
- Cloud revenue jumped 50% year-over-year to $78.9M, now a majority of total revenue
- Multiple analysts raised price targets: DA Davidson to $90, Guggenheim and BTIG both to $80
- CEO says AI coding agents are driving more demand for JFrog’s infrastructure, not less
JFrog (FROG) stock jumped 17% to $66.56 on Friday after the company beat Q1 earnings expectations and lifted its full-year outlook.
The company reported adjusted EPS of $0.27, up from $0.19 a year ago and well ahead of the $0.22 analyst consensus. Revenue came in at $154M, a 26% year-over-year increase, topping Wall Street’s $147.4M estimate.
JFrog had been under pressure in 2026, down 8.7% heading into Thursday’s report, as investors worried that AI-native coding tools could eat into demand for existing software platforms.
Those concerns took a hit Friday.
$FROG Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $154.0M (Est. $147.47M) 🟢
🔹 EPS: $0.27 (Est. $0.21) 🟢Q2 2026 Guide:
🔹 Revenue: $154M-$156M (Est. $151.6M) 🟢
🔹 EPS: $0.23-$0.25 (Est. $0.21) 🟢FY 2026 Guide:
🔹 Revenue: $628M-$632M (Est. $627.7M) 🟡
🔹 EPS: $0.93-$0.97 (Est.… pic.twitter.com/MnsT1eZluU— Wall St Engine (@wallstengine) May 7, 2026
CEO Shlomi Ben Haim pushed back on the narrative, telling Barron’s that AI coding agents are creating more software — and more software means more binary code to manage and secure. That’s JFrog’s core business.
“Every company that was built on human interaction with technology, I think they need to kind of recalculate the future,” Ben Haim said. “Companies that build infrastructure, we will need more of them.”
Guggenheim analysts Howard Ma and Joseph DiBartolomeo backed that view, noting that three of the five largest AI-native companies are already JFrog customers. “They either cannot or it’s too complicated to build what JFrog does,” they wrote, lifting their price target to $80 from $60.
Cloud Revenue Crosses the Majority Mark
Cloud revenue was a standout in the quarter, rising 50% year-over-year to $78.9M. That’s an acceleration from 42.1% growth the prior quarter and well above sell-side estimates of 36.7%.
Cloud now makes up more than half of JFrog’s total revenue, up from 43% a year ago.
Ben Haim noted that customers are increasingly spending above their annual commitments — a sign of growing usage. JFrog’s guidance, however, is based on commitments only, leaving room for upside.
Analysts Lift Targets Across the Board
DA Davidson raised its price target to $90 from $65, the most bullish on the Street, citing strong security adoption and cloud usage driven by AI workloads. The firm kept its Buy rating.
BTIG analyst Nick Altmann also reiterated Buy and raised his target to $80 from $60, praising management’s conservative guidance approach as leaving “room for continued upside.”
Needham raised its target to $80 from $70, also maintaining Buy, and highlighted the cloud growth acceleration as a key positive.
JFrog’s full-year 2026 guidance now calls for adjusted EPS of $0.93–$0.97, up from $0.88–$0.92, and revenue of $628M–$632M, up from $623M–$628M.
The earnings report came a day after Fortinet (FTNT) posted its own beat, lifting the iShares Expanded Tech-Software Sector ETF 3.5% on Thursday.
FROG stock was trading near its 52-week high of $70.43 following Friday’s move, with a gross profit margin of 76.79%.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
