JFrog’s second quarter was marked by strong cloud adoption, increased demand for security solutions, and expanded enterprise customer relationships, driving results ahead of Wall Street’s expectations. Management credited the surge in cloud usage to rapid adoption of AI development tools, which are generating more software binaries, and emphasized the growing need for integrated security as software supply chain attacks become more frequent. CEO Shlomi Ben Haim described JFrog’s platform as the “control plane for the next generation of software delivery,” highlighting the company’s ability to adapt as AI becomes an integral part of software engineering processes.
Is now the time to buy FROG? Find out in our full research report (it’s free for active Edge members).
JFrog (FROG) Q2 CY2026 Highlights:
- Revenue: $163.8 million vs analyst estimates of $155.6 million (28.7% year-on-year growth, 5.2% beat)
- Adjusted EPS: $0.27 vs analyst estimates of $0.24 (12.4% beat)
- Adjusted Operating Income: $32.59 million vs analyst estimates of $28.93 million (19.9% margin, 12.7% beat)
- The company lifted its revenue guidance for the full year to $650 million at the midpoint from $630 million, a 3.2% increase
- Management raised its full-year Adjusted EPS guidance to $0.98 at the midpoint, a 3.2% increase
- Operating Margin: -8.1%, up from -20.4% in the same quarter last year
- Customers: 1,291 customers paying more than $100,000 annually
- Net Revenue Retention Rate: 121%, up from 120% in the previous quarter
- Annual Recurring Revenue: $652.3 million (23.9% year-on-year growth, beat)
- Billings: $208.1 million at quarter end, up 55.8% year on year
- Market Capitalization: $10.61 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From JFrog’s Q2 Earnings Call
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Matt Calitri (Needham): Asked if recent AI-discovered vulnerabilities in self-hosted Artifactory impacted pipeline conversions or could be leveraged for future product improvements. CEO Shlomi Ben Haim emphasized rapid remediation, transparency with customers, and opportunities to highlight the security advantages of JFrog’s cloud solution.
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William Miller Jump (Truist Securities): Inquired whether high-profile open source vulnerabilities led to security pipeline acceleration or pull-forward. Ben Haim acknowledged that ongoing supply chain attacks have increased urgency among CISOs and contributed to higher security adoption and cloud growth.
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Mark Cash (Raymond James): Questioned customer reactions to the OpenAI incident and whether it could drive demand for cloud or broader platform adoption. Ben Haim described prompt patching, proactive communication, and a potential shift toward cloud as customers reassess security postures.
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George McGreehan (Bank of America): Asked about the relative contribution of security products and changes in cloud consumption behavior. Ben Haim highlighted rapid adoption of the Curation firewall product and continued conversion of overages into higher annual commitments.
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Jason Celino (KeyBanc): Sought details on the unique hybrid deployment by a new AI-native customer and the opportunity to land similar deals. Ben Haim explained that scalability needs drove the customer to JFrog, and that the company’s infrastructure is well-suited to support further wins in the AI-native segment.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be monitoring (1) the pace at which self-managed customers migrate to cloud and hybrid models, (2) the adoption rates and attach levels of security and governance products among both new and existing enterprise clients, and (3) the ability of JFrog to secure additional large-scale AI-native customer wins. We will also track how effectively the company converts usage overages into longer-term commitments.
JFrog currently trades at $86.27, up from $83.04 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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