Qualys, Inc. (QLYS) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Qualys, Inc. (QLYS) Technology Profile & Competitive Position

Qualys, Inc. delivers cloud-based IT, security, and compliance solutions, offering a unified platform for vulnerability management, threat protection, and policy compliance. Serving diverse industries globally, Qualys distinguishes itself through its integrated suite of applications and robust cloud infrastructure, achieving a strong profit margin of 29.4%.

What Is the Investment Thesis for QLYS?

The company's integrated cloud platform for IT, security, and compliance offers a comprehensive solution that resonates with enterprises seeking to streamline their security operations. With a gross margin of 83.1% and a profit margin of 29.4%, Qualys demonstrates efficient operations and strong pricing power. A P/E ratio of 31.98 suggests a reasonable valuation relative to earnings. Growth catalysts include expanding its product offerings and leveraging its channel partner network to reach new customers. However, investors should be aware of potential risks, such as increasing competition in the cybersecurity market and the need to continually innovate to stay ahead of emerging threats.

Based on FMP financials and quantitative analysis

QLYS Key Highlights

Market capitalization of $5.69B, reflecting investor confidence in Qualys' market position.

• P/E ratio of 31.98, indicating a potentially undervalued stock relative to its earnings.
• Profit margin of 29.4%, showcasing strong profitability and efficient operations.
• Gross margin of 83.1%, demonstrating significant pricing power and cost management.
• Beta of 0.61, suggesting lower volatility compared to the overall market.

Who Are QLYS's Competitors?

QLYS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are QLYS's Key Strengths?

Comprehensive cloud-based platform

• Strong brand reputation
• High gross margins
• Recurring revenue model

What Are QLYS's Weaknesses?

Limited product diversification

• Reliance on channel partners
• Smaller market share compared to larger competitors

What Could Drive QLYS Stock Higher?

Continued expansion of the Qualys Cloud Platform with new modules and features.

• Increasing demand for cloud-based security solutions driven by digital transformation.
• Potential strategic acquisitions to expand product portfolio and market reach.
• Leveraging channel partner network to penetrate new markets and customer segments.

What Are the Key Risks for QLYS?

Insider selling — insiders were net sellers of roughly $14.8M recently.

• Intense competition from larger cybersecurity vendors and specialized players.
• Rapid technological changes and evolving cyber threats requiring continuous innovation.
• Economic downturn impacting IT spending and customer demand.
• Dependence on third-party cloud infrastructure providers.

What Are the Growth Opportunities for QLYS?

• Expansion of Cloud Platform Offerings: Qualys can expand its cloud platform by adding new modules and features, addressing emerging security threats and compliance requirements. The global cloud security market is projected to reach $68.34 billion by 2028, presenting a significant opportunity for Qualys to capture additional market share. This expansion can be achieved through internal development or strategic acquisitions, enhancing the platform's capabilities and attracting new customers. Timeline: Ongoing.
• Leveraging Channel Partner Network: Qualys can further leverage its network of channel partners, including security consulting organizations, managed service providers, resellers, and consulting firms, to expand its reach and penetrate new markets. By strengthening relationships with existing partners and recruiting new ones, Qualys can accelerate customer acquisition and drive revenue growth. This strategy allows Qualys to scale its sales efforts efficiently and access a wider customer base. Timeline: Ongoing.
• Geographic Expansion: Qualys can expand its geographic presence by targeting new regions and countries with high growth potential. Emerging markets in Asia-Pacific and Latin America offer significant opportunities for Qualys to expand its customer base and increase revenue. By adapting its solutions to meet the specific needs of these markets and establishing local partnerships, Qualys can successfully penetrate new geographies and drive international growth. Timeline: Ongoing.
• Cross-Selling and Upselling: Qualys can increase revenue by cross-selling and upselling its existing customer base. By offering additional modules and features to existing customers, Qualys can increase its average revenue per customer and improve customer retention. This strategy leverages the existing customer relationships and reduces the cost of acquiring new customers. Timeline: Ongoing.
• Strategic Acquisitions: Qualys can pursue strategic acquisitions to expand its product portfolio, acquire new technologies, and enter new markets. By acquiring companies with complementary solutions and technologies, Qualys can accelerate its growth and strengthen its competitive position. This strategy allows Qualys to quickly expand its capabilities and address emerging market trends. Timeline: Ongoing.

What Are QLYS's Competitive Advantages?

• Integrated platform: Qualys' unified cloud platform offers a comprehensive suite of security and compliance solutions, providing a competitive advantage over point solutions.
• Scalability: The cloud-based architecture allows Qualys to scale its solutions quickly and efficiently to meet the needs of its customers.
• Strong brand reputation: Qualys has established a strong brand reputation as a trusted provider of security and compliance solutions.
• High switching costs: Customers face high switching costs due to the integration of Qualys' solutions into their IT infrastructure.

What Does QLYS Do?

Qualys, Inc., founded in 1999 and headquartered in Foster City, California, provides cloud-based IT, security, and compliance solutions. The company's core offering is the Qualys Cloud Platform, an integrated suite of applications designed to help organizations identify IT assets, collect and analyze security data, discover and prioritize vulnerabilities, recommend remediation actions, and verify their implementation. Qualys serves enterprises, government entities, and small and medium-sized businesses across various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. The Qualys Cloud Apps suite includes solutions for Vulnerability Management, Detection and Response; Threat Protection; Continuous Monitoring; Patch Management; Multi-Vector Endpoint Detection and Response; Certificate Assessment; SaaS Detection and Response; Secure Enterprise Mobility; Policy Compliance; Security Configuration Assessment; PCI Compliance; File Integrity Monitoring; Security Assessment Questionnaire; Out-of-Band Configuration Assessment; Web Application Scanning; Web Application Firewall; Global Asset Inventory; Cybersecurity Asset Management; Certificate Inventory; Cloud Inventory; Cloud Security Assessment; and Container Security. These applications enable customers to manage IT assets, analyze security data, discover and prioritize vulnerabilities, and implement remediation actions. Qualys distributes its solutions through its sales teams and a network of channel partners, including security consulting organizations, managed service providers, resellers, and consulting firms. The company operates both in the United States and internationally, establishing a global presence in the cybersecurity and compliance market.

What Products and Services Does QLYS Offer?

• Provides cloud-based IT, security, and compliance solutions.
• Offers a unified platform for vulnerability management, threat protection, and policy compliance.
• Helps organizations identify and manage IT assets.
• Collects and analyzes IT security data.
• Discovers and prioritizes vulnerabilities.
• Recommends and implements remediation actions.
• Verifies the implementation of remediation actions.

How Does QLYS Make Money?

• Subscription-based model: Customers pay recurring fees to access Qualys' cloud-based solutions.
• Channel partnerships: Qualys generates revenue through its network of channel partners, including resellers and managed service providers.
• Enterprise focus: Qualys targets large enterprises with comprehensive security and compliance needs.

What Industry Does QLYS Operate In?

Qualys operates in the rapidly growing cybersecurity market, driven by increasing cyber threats and stringent regulatory requirements. The industry is characterized by intense competition and continuous innovation. Qualys differentiates itself through its integrated cloud platform and comprehensive suite of security and compliance solutions. The company competes with larger cybersecurity vendors and specialized players, requiring ongoing investment in research and development to maintain its competitive edge. The shift towards cloud-based security solutions favors companies like Qualys, which have established a strong presence in this segment.

Who Are QLYS's Key Customers?

• Enterprises: Large organizations with complex IT environments and stringent security requirements.
• Government entities: Government agencies seeking to protect sensitive data and comply with regulations.
• Small and medium-sized businesses: Smaller organizations that require affordable and easy-to-use security solutions.

Over the past six months, Qualys, Inc. insiders filed 83 SEC Form 4 transactions — 77 sales and 6 purchases. On net that is roughly 100K shares disposed (about $14.8M), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: Qualys, Inc.

Revenue for Qualys, Inc. came in at $182.2M during Q2 FY2026, a 3.1% improvement versus the preceding quarter. The company recorded net income of $52.4M, with diluted EPS of $1.48. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Technology company. Across the four most recent quarters, QLYS averaged $1.44 in diluted EPS.

QLYS Valuation & Market Position

With a $5.69B market cap, Qualys, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $130.00 to $220.00, with a consensus of $179.36. At the current price of $161.57, that implies approximately 11% upside potential. Relative to its peer group, QLYS's quantitative score of 93/100 is above the peer average of 73/100.

Return on equity for Qualys, Inc. stands at 37.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 19.2%, showing how much profit it generates from its asset base. QLYS trades at a trailing price-to-earnings ratio of 31.98, roughly in line with the Technology sector average of ~32.70x. Its free cash flow yield is 4.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.38 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.1%, the inverse of the P/E and a quick read on earnings relative to price.

Qualys, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 8.43 places it in the safe zone, indicating low near-term bankruptcy risk.

Qualys, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 13.5% above estimates on average.

Company Profile

Qualys, Inc. operates in the Software - Infrastructure industry within the Technology sector. It is headquartered in Foster City, US. The company is led by CEO Sumedh S. Thakar. QLYS has traded publicly since 2012.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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