F5 Networks (FFIV) AI Stock Analysis

• Market Cap: $13.87B
• Dividend Yield: N/A
• Average Volume (3M): 941.44K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.81
• 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: 57,447,170
• 10 Day Avg. Volume: 1,266,203
• 30 Day Avg. Volume: 941,436
• PEG Ratio: 0.49
• Price to Book (P/B): 4.13
• Price to Sales (P/S): 4.59
• P/FCF Ratio: 16.97
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 5.87
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: 20.82
• 1Y Price Target: $288.57
• Price Target Upside: 17.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 16.25
• Revenue Forecast (FY): $3.21B

• Rating: 64 Neutral
• Price Target: $286.00 ▲(16.03% Upside)

F5 Networks' overall stock score is driven by strong financial performance and positive earnings call highlights, including record revenue and profit. However, technical analysis indicates bearish momentum, and valuation metrics suggest moderate attractiveness. Concerns over potential disruptions from a recent security incident and cautious future guidance also weigh on the score.

Positive Factors

Revenue Growth

The 12% revenue growth indicates robust demand and successful alignment with industry trends, suggesting strong market position and potential for sustained growth.

Cash Flow Generation

Strong cash flow growth enhances financial stability, allowing for reinvestment in growth opportunities and providing a buffer against economic uncertainties.

Profitability

Improved profitability reflects efficient operations and cost management, strengthening the company's ability to generate sustainable earnings over time.

Negative Factors

Leadership Transition

The upcoming leadership transition could introduce uncertainty and impact strategic continuity, affecting long-term planning and execution.

Modest Revenue Growth

While revenue is growing, the modest pace could limit competitive positioning and market share expansion in a rapidly evolving industry.

Valuation Concerns

High valuation may limit investment appeal and upside potential, particularly if growth does not accelerate to justify the premium.

F5 Networks Business Overview & Revenue Model

Company Description

F5 Networks, Inc. (FFIV) is a leading provider of application delivery networking and cybersecurity solutions. Founded in 1996 and headquartered in Seattle, Washington, the company offers a range of products and services designed to enhance the security, performance, and availability of applications across various sectors, including cloud, data center, and mobile environments. F5's core offerings include application delivery controllers (ADCs), web application firewalls (WAFs), and multi-cloud application services, which are designed to optimize application performance and protect against cyber threats.

How the Company Makes Money

F5 Networks generates revenue primarily through the sale of software and hardware products, as well as subscription-based services. Key revenue streams include the licensing of its software solutions, which are often sold alongside hardware appliances that help manage application traffic and enhance security. The company has transitioned to a subscription-based model for many of its services, allowing for recurring revenue through annual contracts. Additionally, F5 benefits from partnerships with major cloud service providers and technology firms, which help expand its market reach and drive sales growth. The company's ongoing focus on cybersecurity solutions also positions it to capture increasing demand for secure application delivery.

F5 Networks Financial Statement Overview

Summary

F5 Networks exhibits strong financial performance with robust profitability, efficient operations, and a solid balance sheet. The company has demonstrated consistent revenue growth and effective cost management, resulting in improved margins. Low leverage and strong cash flow generation further enhance its financial stability.

Income Statement

F5 Networks demonstrates strong profitability with a consistent increase in gross profit margin from 79.9% to 81.4% over the years. The net profit margin has also improved, reaching 22.1% in the TTM period. Revenue growth is steady, albeit modest, with a 2.9% increase in the latest period. The company maintains healthy EBIT and EBITDA margins, indicating efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.066, reflecting prudent financial management and low leverage risk. Return on equity has improved to 20.3%, showcasing effective utilization of shareholder funds. The equity ratio stands at a solid level, indicating a strong capital structure.

Cash Flow

Cash flow performance is strong, with a significant 14.5% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to earnings. The free cash flow to net income ratio is close to 1, indicating that the company effectively converts its profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	2.82B	2.81B	2.70B	2.60B	2.35B
Gross Profit	2.46B	2.26B	2.22B	2.16B	2.11B	1.94B
EBITDA	853.18M	774.24M	650.66M	527.31M	509.45M	495.92M
Net Income	667.18M	566.78M	394.95M	322.16M	331.24M	307.44M
Balance Sheet
Total Assets	6.11B	5.61B	5.25B	5.28B	5.00B	4.68B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.07B	803.32M	884.57M	910.61M	1.21B
Total Debt	259.82M	249.56M	280.99M	664.67M	715.28M	773.05M
Total Liabilities	2.64B	2.48B	2.45B	2.81B	2.64B	2.45B
Stockholders Equity	3.47B	3.13B	2.80B	2.47B	2.36B	2.23B
Cash Flow
Free Cash Flow	954.92M	762.01M	599.23M	409.01M	614.54M	600.96M
Operating Cash Flow	988.10M	792.42M	653.41M	442.63M	645.20M	660.90M
Investing Cash Flow	-61.43M	-59.21M	36.39M	218.12M	-445.33M	-747.00M
Financing Cash Flow	-439.53M	-457.00M	-653.30M	-476.51M	-468.28M	337.24M

F5 Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 246.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIV, the sentiment is Negative. The current price of 246.49 is below the 20-day moving average (MA) of 292.10, below the 50-day MA of 311.09, and below the 200-day MA of 293.28, indicating a bearish trend. The MACD of -20.34 indicates Positive momentum. The RSI at 23.98 is Positive, neither overbought nor oversold. The STOCH value of 4.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FFIV.

F5 Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	78 Outperform	$65.30B	34.32	165.17%	―	14.46%	48.06%
PANW	78 Outperform	$145.20B	133.23	17.45%	―	14.87%	-57.43%
ZS	71 Outperform	$51.97B	―	-2.70%	―	23.31%	31.04%
NET	67 Neutral	$81.59B	―	-8.88%	―	28.06%	-7.44%
CRWD	66 Neutral	$133.99B	―	-8.99%	―	23.46%	-270.07%
FFIV	64 Neutral	$13.87B	20.89	20.60%	―	9.66%	23.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

F5 Networks Corporate Events

F5 Networks Reports Strong FY 2025 Amid Challenges

F5 Networks’ recent earnings call painted a picture of robust financial performance and promising growth, particularly in data centers and AI-driven initiatives. Despite these positive developments, the company expressed caution due to potential short-term disruptions stemming from a recent security incident and provided conservative revenue growth guidance for fiscal year 2026.

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.

The most recent analyst rating on (FFIV) stock is a Sell with a $260.00 price target. To see the full list of analyst forecasts on F5 Networks stock, see the FFIV Stock Forecast page.

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.

The most recent analyst rating on (FFIV) stock is a Hold with a $320.00 price target. To see the full list of analyst forecasts on F5 Networks stock, see the FFIV Stock Forecast page.

F5, Inc. Reports Strong Q3 Revenue Growth

F5, Inc., a global leader in application delivery and security, specializes in securing and optimizing applications and APIs across various environments, including on-premises, cloud, and hybrid multicloud settings. In its third-quarter fiscal year 2025 earnings report, F5 announced a robust 12% year-over-year revenue growth, reaching $780 million, driven by significant demand for its products. The company experienced a 26% increase in product revenue, with systems revenue soaring by 39% and software revenue rising by 16%. This performance underscores F5’s strategic positioning in the rapidly evolving tech landscape, where enterprises are increasingly modernizing data centers and adopting hybrid multicloud architectures. F5’s GAAP net income for the quarter was $190 million, or $3.25 per diluted share, marking a substantial increase from the previous year’s $144 million, or $2.44 per diluted share. Non-GAAP net income also showed impressive growth, reaching $243 million, or $4.16 per diluted share, compared to $199 million, or $3.36 per diluted share, in the same quarter last year. Looking ahead, F5 anticipates continued revenue growth in the range of $780 million to $800 million for the fourth quarter, driven by ongoing demand for tech refreshes and data center modernization. The company projects non-GAAP earnings per share to be between $3.87 and $3.99, reflecting its confidence in sustaining its growth trajectory.

F5 Networks Chair Alan Higginson to Retire

On July 24, 2025, F5, Inc. announced that its Chair, Alan J. Higginson, will retire and not seek re-nomination at the next Annual Meeting of Shareholders in Spring 2026. Higginson, who has been with the company for nearly 30 years, including 20 years as Chair, will continue to serve until the meeting. The Board will work with the Nominating and ESG Committee to find his successor. Additionally, F5 reported robust financial results for Q3 FY2025, with a 12% revenue increase driven by strong product demand and alignment with key industry trends. The company achieved $780 million in revenue, with significant growth in systems and software revenue, highlighting its strong market position and successful adaptation to transformative industry shifts.

The most recent analyst rating on (FFIV) stock is a Sell with a $160.00 price target. To see the full list of analyst forecasts on F5 Networks stock, see the FFIV Stock Forecast page.