F5, Inc. (FFIV)
NASDAQ:FFIV
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F5, Inc.
(NASDAQ:FFIV)
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Rating:78Outperform
Price Target:
$374.00
▲(20.31% Upside)
Action:ReiteratedDate:04/30/26
FFIV scores well on financial durability and the latest earnings call momentum (raised FY'26 guidance, record cash flow, and buybacks), supported by constructive technicals. The main constraints are the sharp TTM revenue decline noted in the financial statements and a valuation multiple near ~28x without dividend yield support, alongside management’s margin headwinds from higher component costs.
Positive Factors
Recurring Revenue Mix
A 70% recurring mix and $2.12B of deferred revenue provide durable revenue visibility and predictable cash flow. This backlog supports steady FCF conversion and funds investment, buybacks, and execution through product cycles, reducing reliance on one-time sales.
Negative Factors
TTM Revenue Decline
A -23.3% TTM revenue drop is a meaningful structural concern that signals demand, renewal timing, or product-cycle weakness. Persistent top-line contraction can limit reinvestment capacity, compress future growth prospects, and strain margin leverage despite strong profitability metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Mix
A 70% recurring mix and $2.12B of deferred revenue provide durable revenue visibility and predictable cash flow. This backlog supports steady FCF conversion and funds investment, buybacks, and execution through product cycles, reducing reliance on one-time sales.
Read all positive factors
F5, Inc. (FFIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.55B
Dividend YieldN/A
Average Volume (3M)688.13K
Price to Earnings (P/E)27.8
Beta (1Y)0.74
Revenue Growth9.69%
EPS Growth15.58%
CountryUS
Employees6,114
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)3.90
Shares Outstanding56,519,270
10 Day Avg. Volume645,911
30 Day Avg. Volume688,134
Financial Highlights & Ratios
PEG Ratio1.13
Price to Book (P/B)5.21
Price to Sales (P/S)6.06
P/FCF Ratio20.65
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue5.37
Enterprise Value/Gross Profit6.56
Enterprise Value/Ebitda19.48
Forecast
1Y Price Target
$341.60Price Target Upside9.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)15.96
Revenue Forecast (FY)$3.27B
F5, Inc. Business Overview & Revenue Model
Company Description
F5, Inc. provides multi-cloud application security and delivery solutions for the security, performance, and availability of network applications, servers, and storage systems. The company's multi-cloud application security and delivery solutions ...
How the Company Makes Money
F5 primarily makes money by selling and subscribing customers to application delivery and security products and associated support services. Key revenue streams include: (1) Product revenue: Sales of F5 software and, where applicable, purpose-buil...
F5, Inc. Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows the profitability of each business unit, indicating which segments are most efficient and contribute most to the bottom line.
Shows the profitability of each business unit, indicating which segments are most efficient and contribute most to the bottom line.
Data provided by:
The Fly
The FlyF5, Inc. Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive performance: robust top-line growth (11% revenue increase), strong product/systems momentum (22% product, 26% systems), record cash flow, raised FY'26 revenue and EPS guidance, meaningful AI traction (~$50M H1 AI sales, ~100 AI customers) and notable regional strength in EMEA/APAC. Key near-term headwinds include services/maintenance timing effects, declining perpetual license revenue, and a clear gross‑margin pressure from elevated memory and SSD costs that management expects will depress margins sequentially into Q4 and potentially into FY'27. Management has taken actions (supply booking, price/discount discipline, innovation) to mitigate these risks. On balance, highlights significantly outweigh the lowlights.Positive Updates
Top-Line Revenue Growth
Total revenue grew 11% year-over-year to $812 million for Q2 FY2026, with a raised FY'26 revenue outlook of 7%–8% (up from 5%–6%). Q3 revenue guidance is $820M–$840M (~6.5% growth at midpoint).
Negative Updates
Services Revenue Softness
Services revenue grew only 2% YoY to $401 million. Management noted a short-term maintenance/servicing headwind tied to a strong hardware refresh cycle (replacement of legacy appliances creates temporary maintenance revenue lag).
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Revenue Growth
Total revenue grew 11% year-over-year to $812 million for Q2 FY2026, with a raised FY'26 revenue outlook of 7%–8% (up from 5%–6%). Q3 revenue guidance is $820M–$840M (~6.5% growth at midpoint).
Read all positive updates
Company Guidance
F5 guided Q3 revenue of $820–$840M (≈6.5% growth at the midpoint), Q3 non‑GAAP gross margin of 82.5%–83.5%, Q3 non‑GAAP operating expenses of $406–$418M, Q3 share‑based compensation of ~$68–$70M and Q3 non‑GAAP EPS of $3.91–$4.03; for FY‑26 they raised revenue growth to 7%–8% (from 5%–6%), expect mid‑single‑digit software growth, double‑digit systems growth and low‑single‑digit services growth, FY non‑GAAP gross margin of 82.5%–83.5% (with a sequential step‑down from Q3→Q4 driven by higher component/memory costs), FY non‑GAAP operating margin of 34%–35%, FY non‑GAAP effective tax rate of 20%–21%, FY non‑GAAP EPS of $16.25–$16.55 (up from $15.65–$16.05), and a plan to repurchase at least 50% of full‑year free cash flow (Q2 free cash flow was a record $348M; cash & investments $1.46B; deferred revenue $2.12B).F5, Inc. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.22B | 3.09B | 2.82B | 2.81B | 2.70B | 2.60B |
| Gross Profit | 2.64B | 2.51B | 2.26B | 2.22B | 2.16B | 2.11B |
| EBITDA | 889.63M | 883.83M | 774.24M | 650.66M | 527.31M | 509.45M |
| Net Income | 708.21M | 692.38M | 566.78M | 394.95M | 322.16M | 331.24M |
Balance Sheet | ||||||
| Total Assets | 6.50B | 6.32B | 5.61B | 5.25B | 5.28B | 5.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 1.34B | 1.07B | 803.32M | 884.57M | 910.61M |
| Total Debt | 226.58M | 492.54M | 465.35M | 520.55M | 937.05M | 1.01B |
| Total Liabilities | 2.85B | 2.73B | 2.48B | 2.45B | 2.81B | 2.64B |
| Stockholders Equity | 3.65B | 3.59B | 3.13B | 2.80B | 2.47B | 2.36B |
Cash Flow | ||||||
| Free Cash Flow | 962.66M | 906.41M | 762.01M | 599.23M | 409.01M | 614.54M |
| Operating Cash Flow | 1.02B | 949.67M | 792.42M | 653.41M | 442.63M | 645.20M |
| Investing Cash Flow | -218.15M | -219.49M | -59.21M | 36.39M | 218.12M | -445.33M |
| Financing Cash Flow | -616.82M | -464.81M | -457.00M | -653.30M | -476.51M | -468.28M |
F5, Inc. Technical Analysis
Positive
310.87
Price Trends
286.29
Positive
273.35
Positive
287.44
Positive
Market Momentum
5.34
Negative
61.67
Neutral
70.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIV, the sentiment is Positive. The current price of 310.87 is above the 20-day moving average (MA) of 296.06, above the 50-day MA of 286.29, and above the 200-day MA of 287.44, indicating a bullish trend. The MACD of 5.34 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 70.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFIV.
F5, Inc. Risk Analysis
F5, Inc. disclosed 41 risk factors in its most recent earnings report. F5, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
F5, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $18.55B | 27.76 | 20.29% | ― | 9.69% | 15.58% | |
74 Outperform | $148.14B | 71.18 | 15.49% | ― | 15.43% | -2.40% | |
74 Outperform | $114.73B | 720.36 | -4.68% | ― | 21.71% | -908.90% | |
72 Outperform | $63.71B | 31.84 | 123.64% | ― | 14.17% | 7.23% | |
67 Neutral | $21.66B | -232.70 | -3.48% | ― | 23.91% | -326.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $74.61B | -671.68 | -7.48% | ― | 29.85% | -27.27% |
* Technology Sector Average
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F5, Inc. Corporate Events
Business Operations and StrategyExecutive/Board Changes
F5 Adds Anand Eswaran to Board, Strengthening AI Focus
Positive
Apr 28, 2026
On April 24, 2026, F5, Inc. appointed Anand Eswaran to its board of directors, expanding the board to nine members, eight of whom are independent. He will sit on the Audit and Talent and Compensation Committees and receive standard non‑emplo...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
F5 Shareholders Approve 2026 Incentive Plan and Governance Items
Positive
Mar 13, 2026
On March 12, 2026, F5 shareholders approved the 2026 Incentive Award Plan at the fiscal 2025 annual meeting, authorizing 3,500,000 new shares of common stock for issuance and rolling over remaining shares from the prior plan. On the same date, the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.