F5 Networks (FFIV) AI Stock Analysis

• Market Cap: $15.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.80
• Revenue Growth: 9.66%
• EPS Growth: 23.87%
• Country: US
• Employees: 6,114
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 4.39
• Shares Outstanding: 58,089,615
• 10 Day Avg. Volume: 1,583,470
• 30 Day Avg. Volume: 1,274,748
• PEG Ratio: 1.13
• Price to Book (P/B): 5.19
• Price to Sales (P/S): 6.03
• P/FCF Ratio: 20.56
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 5.76
• Enterprise Value/Gross Profit: 7.05
• Enterprise Value/Ebitda: 20.24
• 1Y Price Target: $282.86
• Price Target Upside: 8.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 15.04
• Revenue Forecast (FY): $3.14B

• Rating: 74 Outperform
• Price Target: $278.00 ▲(6.73% Upside)

F5 Networks' strong financial performance and strategic leadership changes are significant positives. However, technical indicators suggest bearish momentum, and cautious guidance due to a recent security incident introduces some risk. The stock's valuation is reasonable, but the lack of a dividend yield may deter income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth and increased earnings per share highlight F5 Networks' strong market position and effective business strategies, ensuring long-term financial health.

Cash Flow Generation

Robust cash flow generation supports operational flexibility and strategic investments, underpinning F5 Networks' ability to sustain growth and innovation.

Strategic Partnerships

The partnership with NetApp enhances F5's capabilities in AI and cryptography, positioning the company to meet future technological demands and secure competitive advantages.

Negative Factors

Security Incident Impact

The security breach poses risks to customer trust and sales cycles, potentially impacting revenue growth and necessitating increased investment in security measures.

Software Revenue Challenges

Declining software revenue suggests challenges in transitioning to new offerings, which may affect long-term revenue stability and require strategic adjustments.

Guidance Concerns

Cautious revenue growth guidance reflects potential demand impacts from the security incident, indicating uncertainty in achieving growth targets.

F5 Networks Business Overview & Revenue Model

Company Description

F5 Networks, Inc. (FFIV) is a multinational company specializing in application services and delivery, focusing on application security, multi-cloud management, and network performance. Established in 1996, F5 provides a range of products and services designed to enhance the security, performance, and availability of applications across various environments, including on-premises and cloud settings. Its core offerings include application delivery controllers (ADCs), security solutions, and cloud-native application services, which help organizations optimize and secure their applications in an increasingly digital landscape.

How the Company Makes Money

F5 Networks generates revenue primarily through the sale of its software and hardware products, licensing fees, and subscription services. The company operates a hybrid revenue model that includes both on-premises solutions and cloud-based services, allowing it to cater to a diverse range of customer needs. Key revenue streams include software licensing for its application delivery and security solutions, subscription fees for cloud services, and professional services for implementation and support. Additionally, F5 has formed strategic partnerships with major cloud providers and technology firms, enhancing its market presence and driving revenue growth through integrated solutions and co-marketing initiatives.

F5 Networks Financial Statement Overview

Summary

F5 Networks demonstrates strong financial health with consistent revenue growth, high profitability margins, and a stable balance sheet with low leverage. The company's efficient cash flow generation supports its operational and strategic initiatives, positioning it well for continued growth.

Income Statement

F5 Networks has demonstrated consistent revenue growth with a 2.1% increase in the latest year. The company maintains strong profitability with a gross profit margin of 81.7% and a net profit margin of 22.4%. EBIT and EBITDA margins are also robust at 25.5% and 28.5%, respectively, indicating efficient operational management. The steady growth and high margins reflect a healthy income statement.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.06, indicating low leverage and financial stability. Return on equity is strong, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a well-capitalized structure. Overall, the balance sheet indicates a stable financial position with low risk.

Cash Flow

Operating cash flow is strong, with a high free cash flow to net income ratio of 95.4%, indicating efficient cash generation relative to earnings. Although there was a slight decline in free cash flow growth, the overall cash flow position remains robust, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.09B	3.09B	2.82B	2.81B	2.70B	2.60B
Gross Profit	2.52B	2.52B	2.26B	2.22B	2.16B	2.11B
EBITDA	879.26M	900.74M	774.24M	650.66M	527.31M	509.45M
Net Income	692.38M	692.38M	566.78M	394.95M	322.16M	331.24M
Balance Sheet
Total Assets	6.32B	6.32B	5.61B	5.25B	5.28B	5.00B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.34B	1.07B	803.32M	884.57M	910.61M
Total Debt	230.75M	230.75M	249.56M	280.99M	664.67M	715.28M
Total Liabilities	2.73B	2.73B	2.48B	2.45B	2.81B	2.64B
Stockholders Equity	3.59B	3.59B	3.13B	2.80B	2.47B	2.36B
Cash Flow
Free Cash Flow	906.41M	906.41M	762.01M	599.23M	409.01M	614.54M
Operating Cash Flow	949.67M	949.67M	792.42M	653.41M	442.63M	645.20M
Investing Cash Flow	-219.49M	-219.49M	-59.21M	36.39M	218.12M	-445.33M
Financing Cash Flow	-464.81M	-464.81M	-457.00M	-653.30M	-476.51M	-468.28M

F5 Networks Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 260.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIV, the sentiment is Neutral. The current price of 260.46 is above the 20-day moving average (MA) of 250.39, above the 50-day MA of 260.04, and below the 200-day MA of 285.50, indicating a neutral trend. The MACD of 1.74 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 56.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FFIV.

F5 Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFIV	74 Outperform	$15.13B	22.07	20.60%	―	9.66%	23.87%
PANW	73 Outperform	$132.07B	119.32	15.33%	―	15.30%	-60.71%
FTNT	71 Outperform	$60.79B	33.21	228.04%	―	14.78%	22.52%
CRWD	67 Neutral	$121.80B	-379.01	-8.88%	―	22.05%	-341.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	$70.78B	-679.49	-8.88%	―	28.06%	-7.44%
ZS	60 Neutral	$37.01B	-873.93	-2.41%	―	23.24%	-8.83%

F5 Networks Corporate Events

F5 Networks CEO to Also Chair Board

On October 24, 2025, F5’s Board of Directors announced that François Locoh-Donou, the current CEO and President, will also become the Chair of the Board following the company’s Annual Meeting in March 2026, succeeding Alan J. Higginson. This transition is part of a broader strategy to ensure independent oversight and continuity in leadership. Additionally, F5 reported strong financial results for the fourth quarter and fiscal year 2025, with an 8% increase in quarterly revenue and a 10% annual growth, driven by significant product revenue growth and transformative industry trends. The company is also focusing on enhancing security measures following a recent security incident, emphasizing customer support and innovation in protecting critical infrastructure.

F5 Networks to Acquire Calypso AI for $180 Million

On September 11, 2025, F5 announced its intention to acquire Calypso AI Corp, a company specializing in enterprise AI security, for $180 million. This acquisition aims to integrate CalypsoAI’s adaptive AI security solutions into F5’s platform, enhancing the security of AI inference and providing enterprises with advanced protection against AI threats. The move is expected to bolster F5’s position in the market by addressing the evolving security needs of enterprises deploying AI technologies, although it is anticipated to have minimal impact on F5’s financial results.