The quarter cleared expectations by a meaningful margin. Revenue reached $163.8 million versus published consensus of approximately $155.5 million, while non-GAAP diluted EPS was $0.27 versus roughly $0.18 expected. The result also exceeded JFrog’s own Q2 revenue outlook of $154 million-$156 million and EPS outlook of $0.23-$0.25. (Financial Highlights; Second Quarter and Fiscal Year 2026 Outlook)
| Metric | Q2 2026 actual | Comparison |
|---|---|---|
| Revenue | $163.8 million (Financial Highlights) | $155.5 million published consensus; $127.2 million prior year |
| Cloud revenue | $87.5 million (Recent Business & Product Highlights) | Up 53% year over year; 53% of total revenue versus 45% |
| Non-GAAP diluted EPS | $0.27 (Financial Highlights) | $0.18 published consensus; $0.18 prior year |
| Non-GAAP operating income | $32.6 million (Financial Highlights) | $19.4 million prior year; 19.9% margin versus 15.2% |
| Remaining performance obligations | $659.0 million (Financial Highlights) | Up 38% year over year |
| Free cash flow | $53.7 million (Cash Flow statement; non-GAAP reconciliation) | $35.5 million prior year |
The quality of growth was better than the headline alone suggests. Cloud growth accelerated to 53%, cloud reached a majority of revenue, net dollar retention improved to 121%, and customers producing more than $1 million of ARR rose to 97 from 61. Those indicators point to stronger expansion within large accounts and continued migration toward JFrog’s higher-growth cloud model. (Recent Business & Product Highlights)
Management raised the bar for the rest of 2026. After previously guiding to $628 million-$632 million of fiscal-year revenue, $112 million-$116 million of non-GAAP operating income, and $0.93-$0.97 of diluted EPS, JFrog now guides to $648 million-$652 million, $116 million-$120 million, and $0.96-$1.00, respectively. That is a substantive upward reset, not merely a reaffirmation. (Third Quarter and Fiscal Year 2026 Outlook)
The only offset is near-term margin moderation. Q3 revenue guidance of $164 million-$166 million implies limited sequential growth from Q2, while the midpoint of $28 million for non-GAAP operating income is below Q2’s $32.6 million, implying a lower operating margin. The filing does not explain whether that reflects normal seasonality or incremental investment, so it tempers—but does not overturn—the clear positive read from the beat and raised annual outlook. (Third Quarter and Fiscal Year 2026 Outlook; Financial Highlights)
Read the original 8-K on SEC EDGAR ↗