F5 Stock Earnings Reports

F5 reported exceptional FY2025 results: revenue exceeded $3.0B (up 10%), non-GAAP operating profit surpassed $1.0B, gross margin improved to 83.6% and record free cash flow of $906M (up 19%). Q4 revenue was $810M (up 8%) with strong systems demand (Q4 systems revenue +42% YoY) and continued software subscription traction. The business drivers cited were data center refresh, hybrid multicloud adoption and growing AI infrastructure demand. Management addressed an August 9 security incident affecting BIG-IP: they immediately activated incident response, released fixes, are working with customers on upgrades and data notifications, and plan significant additional security investments (including hiring Michael Montoya as Chief Technology Operations Officer and enhancing EDR capabilities). F5 expects some near-term demand disruption tied to remediation and customer approvals but reaffirmed long-term market opportunities. FY2026 guidance (non-GAAP): revenue growth 0%–4% (with first-half impact expected), gross margin ~83%–83.5%, non-GAAP operating margin 33.5%–34.5%, EPS $14.50–$15.50, and intent to use at least 50% of free cash flow for buybacks. Management emphasized platform strengths (ADSP, XOps, AI offerings including acquisitions like CalypsoAI) and continued focus on cross-sell and SaaS traction (Distributed Cloud adoption rising).