Israel's Allot Q3 revenue rises 16%, beats estimates on cybersecurity demand

Overview

• Israel cybersecurity firm's Q3 revenue grew 16% yr/yr, beating analyst expectations

• Q3 pretax profit missed analyst estimates

• Growth driven by strong Security-as-a-Service revenue and recurring revenue gains

Outlook

• Allot raises 2026 revenue guidance midpoint, now sees $116 mln to $118 mln

• Company expects 2026 SECaaS revenue growth to be above 40%

Result Drivers

• SECaaS GROWTH - SECaaS revenue rose 37% yr/yr and ARR increased 41% yr/yr, supporting recurring revenue base, per CEO Eyal Harari

• SMART SOLUTIONS - Double-digit growth in SMART products attributed to conversion of high backlog into revenue after recent wins, per CEO Eyal Harari

• CYBERSECURITY DEMAND - Rising demand for cybersecurity as threat actors use AI to target customers, supporting need for new solutions, per CEO Eyal Harari

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Allot Ltd is $13.90, about 55% above its November 11 closing price of $8.97

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)