Qualys (QLYS) Stock Forecast & Price Target

Qualys has demonstrated strong financial performance with a current billings growth of 11% year-over-year in the third quarter, indicating a healthy re-acceleration in demand for its services. The company's management has robustly raised its revenue guidance for 2025, reflecting confidence in its growth trajectory and the positive reception of its new QFlex platform pricing model, which enhances customer flexibility and access. Additionally, improvements in both gross retention and net revenue retention metrics suggest a favorable selling environment, further reinforcing the potential for accelerated revenue growth driven by the adoption of Qualys's non-VM products.

Qualys's stock outlook is negatively impacted by concerns regarding the company's ability to renew or increase subscription revenues, as well as potential declines in pricing for its solutions. Additionally, there are worries about market perception, suggesting that Qualys may struggle to establish itself as a platform that consolidates spending, which could lead to a loss of market share. Lastly, despite a strong non-GAAP operating margin of 47.1%, the overall cybersecurity spending priorities in the market may limit growth in top-line estimates, further contributing to the negative sentiment surrounding the stock.