F5 Networks (FFIV) AI Stock Analysis

• Market Cap: $17.62B
• Dividend Yield: N/A
• Average Volume (3M): 524.11K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.86
• Revenue Growth: 8.94%
• EPS Growth: 22.30%
• Country: US
• Employees: 6,114
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 4.16
• Shares Outstanding: 57,447,170
• 10 Day Avg. Volume: 426,524
• 30 Day Avg. Volume: 524,111
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 5.31
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 18.81
• 1Y Price Target: $325.50
• Price Target Upside: 3.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: $337.00 ▲(7.21% Upside)

F5 Networks' strong financial performance and positive corporate events are significant strengths, contributing to a solid overall score. However, the stock's technical indicators suggest mixed momentum, and the valuation appears high, which may limit upside potential. The absence of earnings call data leaves some strategic insights speculative.

Positive Factors

Financial Performance

F5 delivered another quarter of top- and bottom-line beats with fiscal third-quarter revenue up 12% and non-GAAP EPS up 24%.

Market Opportunities

The company continues to benefit from a hardware upgrade cycle, software subscription renewals, AI/modernization tailwinds, and a share gain opportunity in its core ADC market.

Negative Factors

Growth Concerns

There are persistent questions about the sustainability of mid- to high-single-digit growth going into fiscal 2026.

Software Segment Challenges

Flat growth in Software makes it difficult to forecast the model and gain confidence in future growth.

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 a solid financial position with strong profitability, efficient operations, and a robust 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, positioning it well for future growth.

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: Positive
• Last Price: 314.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 314.35 is below the 20-day moving average (MA) of 316.64, above the 50-day MA of 307.13, and above the 200-day MA of 280.78, indicating a neutral trend. The MACD of 1.15 indicates Positive momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 30.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFIV.

F5 Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PANW	80 Outperform	$127.44B	119.70	17.45%	―	14.87%	-57.43%
NET	70 Neutral	$72.50B	―	-11.04%	―	27.32%	-11.94%
FFIV	68 Neutral	$17.62B	27.25	20.58%	―	8.94%	22.30%
ZS	68 Neutral	$42.75B	―	-2.70%	―	23.31%	31.04%
FTNT	67 Neutral	$58.95B	30.56	165.17%	―	14.46%	48.06%
CRWD	65 Neutral	$103.51B	721.64	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%

F5 Networks Corporate Events

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.