JFrog Raises 2026 Outlook as Cloud Revenue Jumps 60% on AI-Driven Security Demand

The Israeli-American company, whose platform manages and scans the code packages and binaries that go into commercial software, now expects 2026 revenue of $680 million to $682 million, according to its earnings release. In August it had guided to $648 million to $652 million. Bloomberg said the new forecast implies JFrog's fastest revenue growth in four years.

The results put a number on a shift that security vendors have been describing all year: AI coding tools are multiplying the volume of code and dependencies flowing into production, and AI-equipped attackers are probing that software more aggressively. "AI agents are writing code faster than any developer can review it," chief executive Shlomi Ben Haim said in the release. "Speed without trust can't scale."

Cloud revenue reached $101.5 million in the quarter ended September 30, or 57% of the total, up from 46% a year earlier. JFrog reported GAAP net income of $6.6 million, or 5 cents a diluted share, despite a small GAAP operating loss of $1.8 million. On an adjusted basis it earned $41.2 million, or 32 cents a share, with a non-GAAP operating margin of 22.7%. Free cash flow was $66.5 million.

Large customers drove much of the growth. The number paying more than $1 million a year rose to 112 from 71 a year earlier, and those paying over $100,000 rose to 1,357 from 1,121. Net dollar retention over the trailing four quarters improved to 124% from 118%, meaning existing customers are spending substantially more each year.

For the fourth quarter, JFrog forecast revenue of $183 million to $185 million and adjusted earnings of 28 to 30 cents a share. For the full year it expects adjusted operating income of $142.5 million to $144.5 million and adjusted earnings of $1.14 to $1.16 a share.

The company used the quarter to push further into tools aimed at AI-generated code and AI agents themselves. It announced what it calls Zero-Touch Remediation, a system for automatically applying verified fixes to known vulnerabilities, built with partners including Broadcom, Chainguard and IBM's Red Hat. It also introduced AI asset scanning and a product called Agent Guard for securing AI agents, added support for Microsoft's Agent Package Manager, and struck a partnership with cloud security company Wiz to link code, cloud and runtime protection.

The forecast arrived on a day when the Nasdaq fell 5.5% as investors sold AI-linked stocks over fears of tighter regulation after the US midterm elections. Software companies selling into the security budgets of large enterprises have so far been treated differently from chipmakers and data centre operators, and JFrog's numbers suggest that demand for securing AI-written code is not tied to how quickly new data centres get built.

JFrog's next test will be whether its cloud growth holds up in the fourth quarter, which its guidance implies will bring revenue growth of roughly a quarter over the year-earlier period.