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F5, Inc.
(NASDAQ:FFIV)
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Rating:76Outperform
Price Target:
$442.00
▲(42.18% Upside)
Action:Reiterated
Date:06/24/26
The score is driven primarily by strong underlying financial durability (high margins, strong cash generation, low leverage) and a bullish earnings update with raised FY26 guidance and robust AI/product momentum. Technicals are supportive but not strongly over-accelerating. Valuation is the main constraint (P/E ~31.8), and near-term margin pressure from component costs is a key watch item.
Positive Factors
Strong balance sheet
F5's conservative leverage and improving ROE signal durable financial flexibility. Low debt reduces refinancing and covenant risk, enabling consistent investment in R&D, M&A optionality, and sizable buybacks while withstanding cyclical revenue swings, supporting long-term strategic execution.
Negative Factors
Sharp TTM revenue decline
A pronounced trailing‑twelve‑month revenue contraction raises concerns about demand timing, renewal cadence, or transition effects. Even with strong margins, sustained top‑line weakness could pressure R&D investment and make margin targets harder to maintain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
F5's conservative leverage and improving ROE signal durable financial flexibility. Low debt reduces refinancing and covenant risk, enabling consistent investment in R&D, M&A optionality, and sizable buybacks while withstanding cyclical revenue swings, supporting long-term strategic execution.
Read all positive factors
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. (FFIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.03B
Dividend YieldN/A
Average Volume (3M)688.42K
Price to Earnings (P/E)33.1
Beta (1Y)0.74
Revenue Growth9.69%
EPS Growth15.58%
CountryUS
Employees6,114
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)12.32
Shares Outstanding56,419,247
10 Day Avg. Volume577,963
30 Day Avg. Volume688,422
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 Cap0.89
Enterprise Value/Revenue6.37
Enterprise Value/Gross Profit7.77
Enterprise Value/Ebitda21.81
Forecast
1Y Price Target
$404.25Price Target Upside30.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)16.49
Revenue Forecast (FY)$3.33B
F5, Inc. Business Overview & Revenue Model
Company Description
F5, Inc. is a technology company specializing in comprehensive solutions designed to secure and optimize the delivery of applications across various cloud environments. Their core mission is to guarantee the security, peak performance, and constan...
How the Company Makes Money
F5 primarily makes money by selling application delivery and security products and associated services to enterprises, service providers, and public-sector customers. Key revenue streams include: (1) Software and SaaS subscriptions: Revenue from t...
F5, 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 | 941.42M | 883.83M | 774.24M | 650.66M | 527.31M | 502.36M |
| 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 | 259.86M | 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
372.39
Positive
330.16
Positive
302.91
Positive
Market Momentum
9.68
Negative
59.86
Neutral
76.53
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 below the 20-day moving average (MA) of 396.76, below the 50-day MA of 372.39, and above the 200-day MA of 302.91, indicating a bullish trend. The MACD of 9.68 indicates Negative momentum. The RSI at 59.86 is Neutral, neither overbought nor oversold. The STOCH value of 76.53 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $234.54B | 248.92 | 6.30% | ― | 19.51% | -33.05% | |
79 Outperform | $114.48B | 60.10 | 155.65% | ― | 15.75% | 6.24% | |
76 Outperform | $23.03B | 33.13 | 19.88% | ― | 9.69% | 15.58% | |
76 Outperform | $174.34B | ― | -0.58% | ― | 23.17% | 73.57% | |
68 Neutral | $20.19B | ― | -3.71% | ― | 24.61% | -91.58% | |
67 Neutral | $86.09B | -975.19 | -6.23% | ― | 31.55% | -4.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FFIV
F5, Inc.
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35.99%
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F5, Inc. Corporate Events
Business Operations and StrategyExecutive/Board Changes
F5 Adds Gavin Munroe to Board and Committees
Positive
Jun 23, 2026
On June 17, 2026, F5, Inc. appointed technology executive Gavin Munroe to its board of directors, expanding the board to 10 members, nine of whom are independent, and placing him on both the Audit and Risk committees with standard non‑employ...
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...
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.