Can Qualys (QLYS) Weather AI Challenges?

Can Qualys (QLYS) Weather AI Challenges? Soumya Eswaran Thu, June 11, 2026 at 10:00 PM GMT+7 3 min read QLYS CL=F The London Company released its Q1 2026 investor letter for “The London Company Small-Mid Cap Strategy”. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. A copy of the letter is available to download here. The year started positively with a broad rally, but sentiment reversed in March due to the Iran conflict. Crude oil prices rose, raising inflation concerns and shifting the Fed s outlook from rate cuts to hikes. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI concerns in software, while small caps proved resilient. Sector dispersion was extreme; Energy surged over 35%, while Tech fell over 9%. Value, Momentum, and Yield drove returns from a factor perspective. In this environment, the London Company Small-Mid Cap portfolio declined 3.4% (-3.6% net) in the quarter vs. a 2.0% increase in the Russell 2500 Index. The relative underperformance was driven by both sector exposure and stock selection. Structural underweight to Energy and commodity-linked industries was a significant detractor. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, The London Company Small-Mid Cap Strategy highlighted Qualys, Inc. (NASDAQ:QLYS). Qualys, Inc. (NASDAQ:QLYS) is a cloud-based platform that provides information technology (IT), security, and compliance solutions. On June 10, 2026, Qualys, Inc. (NASDAQ:QLYS) closed at $110.20 per share. One-month return of Qualys, Inc. (NASDAQ:QLYS) was 25.26%, and its shares lost 22.78% over the past 52 weeks. Qualys, Inc. (NASDAQ:QLYS) has a market capitalization of $3.88 billion.

The London Company Small-Mid Cap Strategy stated the following regarding Qualys, Inc. (NASDAQ:QLYS) in its Q1 2026 investor letter: