Company Reports

F5 reported strong third-quarter results, with the firm's sales increasing by 11% to $865 million and its adjusted operating margins expanding 70 basis points to 35%. Management raised its fiscal 2026 sales growth outlook to 9.5%, up from 7.5%, at the midpoint of the guidance ranges.

F5 is a leader in application delivery controllers, or ADCs, that it sells to enterprises, service providers, and government entities. F5 has long been the market leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

F5 reported solid second-quarter results, with sales growing 11% to $812 million and adjusted operating margins up 190 basis points to 33.8%. The firm's systems, or hardware, sales continue to benefit from increased artificial intelligence-driven demand, growing 26%.

F5 is a leader in application delivery controllers, or ADCs, that it sells to enterprises, service providers, and government entities. F5 has long been the market leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

F5 reported strong first-quarter financial results that included sales of $822 million, up 7%, and adjusted operating margins of 38.2%, up 80 basis points. The firm provided an improved updated guidance for 2026 as it mitigates the negative impacts of the recent China-backed cyber breach.

F5 is a leader in application delivery controllers, or ADCs, that it sells to enterprises, service providers, and government entities. F5 has long been the market leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

F5 reported solid fourth-quarter results that included sales of $810 million, up 8%, and adjusted operating margins of 37%, up 260 basis points. The firm's fiscal 2026 outlook included the projected negative impacts of the recent China-backed breach of the firm's BIG-IP products.

F5 is a leader in application delivery controllers, or ADCs, that it sells to enterprises, service providers, and government entities. F5 has long been the market share leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

F5 reported strong fiscal third-quarter results, with sales increasing by 12% to $780 million and its adjusted operating margins expanding 80 basis points to 34.3%. After a weak 2024, F5's strength this year is driven by its products business, with system sales growing by 39% to $181 million.

F5 reported solid fiscal second-quarter results, with the firm's sales and adjusted operating margins expanding 7% and 100 basis points year over year. As in the previous quarter, F5 saw solid expansion in its products business, with system sales growing 27% year over year to $179 million.

F5 is a leader in application delivery controllers, or ADCs, that it sells to enterprises, service providers, and government entities. F5 has long been the market share leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

F5 reported strong fiscal first-quarter results, with sales growing by 11% to $766 million. The firm's earnings were aided by an improving demand for F5's products business, with software and system sales growing 22% and 18%, respectively.

F5 reported solid fourth-quarter results, with revenue up 6% year over year. The firm's financial results were buoyed by an improving demand outlook with demand for F5's products, especially software solutions, picking up, and with more improvements expected in fiscal 2025.

F5 is a leader in application delivery controllers, or ADCs, that it sells to enterprises, service providers, and government entities. F5 has long been the market share leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

We are maintaining our $205 fair value estimate for narrow-moat F5 after the firm reported strong third-quarter financial results slightly above our estimates. Much like recent quarters, the firm saw continued stabilization in customer demand after a weak 2023. We view this trend as a good omen for the firm and project fiscal 2025 sales to rebound as demand for F5’s solutions picks up. While sales growth has declined in recent quarters, we have been impressed by F5’s ability to ramp up its profitability during this period of cooling sales growth. We expect further margin expansion as the firm’s ongoing operational discipline is buttressed by a return to growth on the top line. With shares trading up more than 10% after hours, we view F5 as fairly valued.

We are maintaining our $205 fair value estimate for narrow-moat F5 after the firm closed out the second quarter of fiscal 2024 with financial results roughly in line with our prior forecasts. While macro pressures continue to weigh down customer budgets, the firm continues to see stabilization in customer demand after a tough 2023. As in previous quarters, we remain impressed by the firm’s focus on profitability during the current period of macroeconomic uncertainty. We believe investors were left unimpressed with F5’s guidance for the upcoming quarter, resulting in the firm’s shares selling off sharply after its earnings report. While quarterly guidance implies a tough demand environment, the selloff is overly punitive. With the company’s shares trading down after hours, we view them as undervalued.

F5 is a leader in application delivery controllers, or ADCs, sells to enterprises, service providers, and government entities. F5 has long been the market share leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

We are raising our fair value estimate to $205 per share from $180 per share for narrow-moat F5 after the firm began fiscal year 2024 materially outperforming our expectations for revenue and earnings. While customer budgets have not normalized, management has seen more predictable demand and almost no late cancelations or extra approval layers in recent deals. We think F5’s top line is positioned to accelerate. The market agreed with our sentiment in afterhours trading, sending shares up about 9%. We view shares as fairly valued at current prices and think F5 is an interesting name to monitor over the next few quarters.

F5 is a leader in application delivery controllers, or ADCs, sells to enterprises, service providers, and government entities. F5 has long been the market share leader for hardware-delivered ADCs, but due to a change in consumption preferences, successfully pivoted to a software-focused business model. We think the company is well positioned to remain the share leader in hardware ADCs while competing in the higher growth software market and grow along with SaaS, application, and edge security over the next decade.

We are raising our fair value estimate to $180 per share from $170 for narrow-moat F5 after the firm closed its fiscal year on a mostly positive note. While the demand environment has yet to normalize, management called out signs of demand stabilization as some enterprise customers, that had previously been extending the use of assets beyond typical durations, resumed hardware purchases. While its top line would continue to be muted in the near term, F5 has successfully demonstrated operating leverage in terms of gross margin improvements from selling more software, operating discipline, as well as previous cost-cutting measures. Despite revenue headwinds, we are pleased with F5’s ability to produce profitability under difficult conditions. Our fair value increase is a result of our model roll for the fiscal year end and our positive consideration of F5’s operating flexibility. While we view shares as undervalued, we’d ask investors to tread with caution as F5’s customers continue to scrutinize spending in times of macroeconomic uncertainty.