JFrog rises 35.3% after stronger-than-expected quarterly results and a large cloud deal

What happened

JFrog (FROG) rose 35.3% on November 6, 2026, because of quarterly results and the disclosure of a multiyear $76 million cloud agreement that accompanied the report. The company reported third-quarter revenue of $179.2 million, a 31% year-over-year increase, and said earnings per share were $0.32 against $0.23 expected, 37.7% above estimates. The release extended a run of earnings beats to 15 consecutive quarters.

How big was the move

The stock rose 35.3% on the day, a jump that was 5.9 times a typical daily move for this stock. It opened 27.3% above the previous close and traded at volume 3.4 times its 20-day average, indicating heavy participation. Over the last five sessions the stock rose 7.0%, while the S&P 500 over five sessions fell 2.7% and rose 0.3% on the day; the technology sector median rose 1.7% on the day, making the stock 33.6 percentage points better than the sector median.

The technical picture

The stock traded 7.9% above its 20-day moving average and 8.1% above its 50-day moving average, while it was 39.2% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 131 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) is 56, in the neutral range between 30 and 70. Shares were 4.5% below the 52-week high and have risen 3.8% over one month, 14.6% over three months and 119.0% over one year, which is 110.4 percentage points ahead of the S&P 500.

Short-term volatility is elevated: volatility was 95% annualized over 60 days, higher than 99% of its own readings over five years. That helps explain the size of the move, which was 5.9 times a typical daily change for the stock.

Fundamentals and valuation

For the four quarters through September 30, 2026, the company reported revenue of $642.2 million, up 27.8% from a year earlier and following quarter-over-quarter growth of 26.4%. Gross margin was 78.4% (a year earlier: 76.2%), while operating margin was 7.4% (a year earlier: 19.0%). Diluted earnings per share over the period was $-0.18 and free-cash-flow margin was 32.3%.

Return on invested capital was 6.6% and the balance sheet showed net debt of 32.2 times EBITDA. Share count over one year increased by 10.4%. Valuation measures included a Price to forward earnings of 103.0 times expected earnings and a Free-cash-flow yield of 1.8%.

PromtFinance sector scores show Growth 89 (Strong) and Momentum 100 (Exceptional), while Value is 18 (Very weak) and Quality is 35 (Weak), highlighting rapid growth and momentum alongside a stretched valuation and weaker quality metrics.

Earnings and analyst expectations

The last report, on November 5, 2026, showed earnings per share of $0.32 against $0.23 expected, 37.7% above estimates. The company has reported 15 consecutive quarters beating estimates and average surprise over the last four reports was 23.1% above estimates. Typical two-day reaction after recent reports was fell 1.0%, making the market response to this report unusually strong.

Analysts show a consensus rating of Buy, with 88% of the 24 analysts covering the stock at Buy or Strong Buy. The consensus price target is $111.19, which is 10.1% above the closing price on the session. The next report is scheduled for February 11, 2027.

What to watch

• February 11, 2027: next earnings report date.
• The disclosed $76 million multiyear cloud agreement announced in the quarter, and any further details on contract duration or renewal terms.
• Consensus price target of $111.19, 10.1% above the closing price, and the views of the 24 analysts covering the stock.
• Balance sheet leverage noted as net debt of 32.2 times EBITDA and changes to that metric in subsequent filings.
• Free-cash-flow margin of 32.3% and any guidance updates that could affect the 103.0 times Price to forward earnings metric.