RadwareSTU:RWA +1.56%68 Gross Margin % is 81.07% as of Mar. 2026, which is 1% below its 10-year median of 81.67. GuruFocus rates STU:RWA with a GF Score™ of 68/100 and a GF Value™ of €21.41 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,680 Software companies, Radware ranks better than 89.14% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Radware's Gross Profit for the
three
months ended in Mar. 2026 was €56.0 Mil. Radware's Revenue for the
three
months ended in Mar. 2026 was €69.0 Mil. Therefore, Radware's Gross Margin % for the quarter that ended in Mar. 2026 was 81.07%.
The historical rank and industry rank for Radware's Gross Margin % or its related term are showing as below:
STU:RWA'
s Gross Margin % Range Over the Past 10 Years
Min: 80.21 Med: 81.67 Max: 82.22
Current: 80.79
During the past 13 years, the highestGross Margin % of Radware was 82.22%. The lowest was 80.21%. And the median was 81.67%.
STU:RWA's Gross Margin % is ranked better than 89.14% of 2680
companies
in the Software industry
Industry Median: 40.45
vs STU:RWA: 80.79
Radware had a gross margin of 81.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Radware was -0.40% per year.
Radware (STU:RWA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Radware had a gross margin of 81.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Radware Gross Margin % Related Terms
Radware Gross Margin % Historical Data
* Premium members only.
The historical data trend for Radware's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:RWA vs TCGLF, HQ, GCT: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Radware's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Radware Gross Margin % vs Software Industry
For the Software industry and Technology sector, Radware's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Radware's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Radware (STU:RWA) has a Gross Margin % of 81.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Radware and its competitors. This is near median its historical median of 81.67. Over the past decade, Radware's Gross Margin % has ranged from 80.21 to 82.22. According to the industry distribution chart, Radware ranks #291 out of 2680 companies in the Software industry, placing it in the top 10.9%.
Is Radware's Gross Margin % too high?
Radware's current Gross Margin % of 81.07% is near median its 10-year median of 81.67. Over the past 10 years, this metric has ranged from a low of 80.21 to a high of 82.22. The Software industry median Gross Margin % is 40.45. Radware's value of 81.07% is 100.4% above this industry median. Based on the distribution chart, Radware ranks #291 out of 2680 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Radware has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Radware's Gross Margin % compare to TCGLF and HQ?
According to the Software industry distribution chart, Radware ranks #291 out of 2680 companies for Gross Margin %. This places Radware in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Radware's value of 81.07% is 100.4% above this benchmark. Historically, Radware's own Gross Margin % has ranged from 80.21 to 82.22 over the past decade. While the company's 10-year median is 81.67 vs. the industry median of 40.45, Radware has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Radware's current Gross Margin % of 81.07% is 100.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Radware and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Radware's current Gross Margin % is 81.07%, which is near median its own 10-year median of 81.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Radware stock overvalued right now?
Based on GuruFocus' analysis, Radware (STU:RWA) is currently considered Modestly Overvalued. The stock's GF Value™ is €21.41, compared to a current price of €26.00 — trading 21.4% above its estimated fair value. The current Gross Margin % is 81.07%, which is near median its 10-year median of 81.67 and 100.4% above the Software industry median of 40.45. Radware's overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Radware (STU:RWA), the current Gross Margin % is 81.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Radware (STU:RWA) Overvalued in 2026?
Based on GuruFocus' analysis, Radware stock appears to be overvalued.
The current stock price of €26.00 is trading 21.4% above its estimated GF Value™ of €21.41.
GuruFocus considers Radware to be Modestly Overvalued.
Key valuation signals for STU:RWA:
Gross Margin %: 81.07% (near median its 10-year median of 81.67)
GF Value™: €21.41 vs. price of €26.00 (21.4% above fair value)
Industry Position: 100.4% above the Software median (#291 of 2680)
No single metric tells the full story. See the STU:RWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Radware Ltd is a provider of application security and delivery solutions for multi-cloud environments. Its solutions secure the digital experience by providing infrastructure, application, and network protection and availability services to companies globally. Its solutions are deployed by, among others, enterprises, carriers, and cloud service providers. The company offers solutions in two main categories: Products offers a range of cloud-based security-as-a-service subscriptions, on-premises hardware and software products, and product subscriptions (or a combination of these) to customers; and Services offers managed services, professional services, technical support and training and certification to customers and partners.
68GF Score
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