JFrog Ltd: Needham raises target price to $115 from $80

Needham has raised its price target for JFrog Ltd. (NASDAQ:FROG) to $115 from $80, while maintaining a Buy rating on the stock. The firm highlighted JFrog’s strong financial performance, particularly in cloud revenue, which grew 50.0% year-over-year in the first quarter of 2026, surpassing the sell-side estimate of 36.7% year-over-year. This represents an acceleration from the 42.1% year-over-year growth recorded in the fourth quarter of 2025.

JFrog’s total revenue over the past twelve months reached $532 million, reflecting a 24% year-over-year increase, supported by a high gross profit margin of 77%. The company also raised its 2026 cloud revenue growth guidance to 33%-35% year-over-year from 30%-32%, and increased its total revenue guidance by $4.5 million, or 0.7%, at the midpoint.

In Q1 2026, JFrog reported an EPS of $0.27, exceeding the expected $0.21, and revenue of $154 million, surpassing the forecast of $147.47 million. The stock currently trades at $57.02 with a market cap of $6.91 billion, having gained 62% over the past year. Needham emphasized that JFrog is well-positioned to benefit from ongoing software spending and cloud migration trends driven by AI and cybersecurity needs.