F5 Reports Second Quarter Results with 11% Revenue Growth

Including 22% Product Growth

F5, Inc. (NASDAQ: FFIV), the global leader in delivering and securing every app and API, today announced financial results for its second quarter fiscal year 2026 ended March 31, 2026.

"Our second quarter revenue of $812 million grew 11% year over year, driven by 22% product revenue growth—our seventh straight quarter of double-digit product growth," said François Locoh-Donou, F5's Chairman, President, and CEO. "Our continued strong performance reflects rising demand for F5's solutions anchored in structural demand drivers, including growing hybrid multicloud adoption, an expanding cybersecurity threat landscape, and an inflection in AI inference. With our continued emphasis on customer-focused innovation, F5 is well positioned to help customers scale and secure the AI-powered applications of the future."

Second Quarter Performance Summary

Second quarter fiscal year 2026 revenue totaled $812 million, representing 11% growth compared with $731 million in the second quarter of fiscal year 2025. Systems revenue of $226 million grew 26% from the year-ago period while software revenue of $184 million grew 17%. Services revenue of $401 million grew 2% from the year-ago period.

GAAP gross profit for the second quarter of fiscal year 2026 was $661 million, representing GAAP gross margin of 81.4%. This compares with GAAP gross profit of $590 million in the year-ago period, which represented GAAP gross margin of 80.7%. Non-GAAP gross profit for the second quarter of fiscal year 2026 was $680 million, representing non-GAAP gross margin of 83.7%. This compares with non-GAAP gross profit of $607 million in the year-ago period, which represented non-GAAP gross margin of 83.1%.

GAAP income from operations for the second quarter of fiscal year 2026 was $179 million, representing GAAP operating margin of 22.1%. This compares with GAAP income from operations of $159 million in the year-ago period, which represented GAAP operating margin of 21.7%. Non-GAAP income from operations for the period was $274 million, representing non-GAAP operating margin of 33.8%. This compares to non-GAAP income from operations of $233 million in the year-ago period, which represented non-GAAP operating margin of 31.9%.

GAAP net income for the second quarter of fiscal year 2026 was $148 million, or $2.58 per diluted share compared to $146 million, or $2.48 per diluted share, in the second quarter of fiscal year 2025. Non-GAAP net income for the second quarter of fiscal year 2026 was $223 million, or $3.90 per diluted share, compared to $201 million, or $3.42 per diluted share, in the second quarter of fiscal year 2025.

Performance Summary Tables

GAAP Measures					Non-GAAP Measures
($ in millions except EPS)	Q2 FY2026		Q2 FY2025		($ in millions except EPS)	Q2 FY2026		Q2 FY2025
Revenue	$	812	$	731	Revenue	$	812	$	731
Gross profit	$	661	$	590	Gross profit	$	680	$	607
Gross margin		81.4%		80.7%	Gross margin		83.7%		83.1%
Operating profit	$	179	$	159	Operating profit	$	274	$	233
Operating margin		22.1%		21.7%	Operating margin		33.8%		31.9%
Net income	$	148	$	146	Net income	$	223	$	201
EPS	$	2.58	$	2.48	EPS	$	3.90	$	3.42

A reconciliation of GAAP to non-GAAP measures is included with the attached financial statements. Additional information about non-GAAP financial information is included in this release.

Business Outlook

F5 raised its outlook for its fiscal year 2026, guiding for revenue growth in a range of 7% to 8%, up from 5% to 6% previously. F5 expects non-GAAP earnings per share in a range of $16.25 to $16.55, up from $15.65 to $16.05 previously.

For the third quarter of fiscal year 2026, F5 is guiding to revenue in the range of $820 million to $840 million, with non-GAAP earnings in the range of $3.91 to $4.03 per diluted share.

All forward-looking non-GAAP measures included in the Company's business outlook exclude estimates for amortization of intangible assets, share-based compensation expenses, significant effects of tax legislation and judicial or administrative interpretation of tax regulations (including the impact of income tax reform), non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions or divestitures, acquisition-related charges and write-downs, cyber incident costs, restructuring charges, facility exit costs, or other non-recurring charges that may occur in the period. F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding U.S. generally accepted accounting principles or GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.

Live Webcast and Conference Call

F5 will host a live webcast to review its financial results and outlook today, April 28, 2026, at 4:30 pm ET. Open to the public, the live webcast, supplemental financial information, and earnings slides are accessible from the investor relations page of F5.com. To participate in the live call via telephone in the U.S., dial +1 (888) 596-4144; from Canada, dial +1 (647) 495-7514; from outside the U.S. and Canada, dial +1 (646) 968-2525, and reference conference ID 6076834. Please call at least five minutes prior to the call start time. The webcast replay will be archived on the investor relations portion of F5's website.

Forward Looking Statements

This press release contains forward-looking statements including, among other things, that F5's continued strong performance reflects rising demand for F5's solutions anchored in durable structural demand drivers, including hybrid multicloud adoption, an expanding cybersecurity threat landscape, and rapid enterprise AI adoption, that F5's continued focus on customer-focused innovation positions F5 well to help customers scale and secure the AI-powered applications of the future, the Company's future financial performance including revenue growth, earnings growth, future customer demand, and the performance and benefits of the Company's products. These, and other statements that are not historical facts, are forward-looking statements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors. Such forward-looking statements involve risks and uncertainties, as well as assumptions and other factors that, if they do not fully materialize or prove correct, could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: customer acceptance of offerings; disruptions to the global supply chain resulting in inability to source required parts for F5's products or the ability to only do so at greatly increased prices thereby impacting our revenues and/or margins; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; F5's ability to successfully integrate acquired businesses' products with F5 technologies; the ability of F5's sales professionals and distribution partners to sell new solutions and service offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into F5's markets, and new product and marketing initiatives by our competitors; increased sales discounts; the business impact of the acquisitions and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of completion of acquisitions; uncertain global economic conditions which may result in reduced customer demand for our products and services and changes in customer payment patterns; litigation involving patents, intellectual property, shareholder and other matters, and governmental investigations; potential security flaws in the Company's networks, products or services; cybersecurity attacks on its networks, products or services; natural catastrophic events; a pandemic or epidemic; F5's ability to sustain, develop and effectively utilize distribution relationships; F5's ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5's ability to expand in international markets; the unpredictability of F5's sales cycle; the ability of F5 to execute on its share repurchase program including the timing of any repurchases; future prices of F5's common stock; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K and other documents that we may file or furnish from time to time, which could cause actual results to vary from expectations. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in F5's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. All forward-looking statements in this press release are based on information available as of the date hereof and qualified in their entirety by this cautionary statement. F5 assumes no obligation to revise or update these forward-looking statements.

GAAP to non-GAAP Reconciliation

F5's management evaluates and makes operating decisions using various operating measures. These measures are generally based on the revenues of its products, services operations, and certain costs of those operations, such as cost of revenues, research and development, sales and marketing and general and administrative expenses. One such measure is GAAP net income excluding, as applicable, stock-based compensation, amortization and impairment of purchased intangible assets, facility-exit costs, acquisition-related charges, net of taxes, cyber incident costs, restructuring charges, and certain non-recurring tax expenses and benefits, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. This measure of non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the Company would accrue if it used non-GAAP results instead of GAAP results to calculate the Company's tax liability.

The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are outlined below:

Stock-based compensation. Stock-based compensation consists of expense for stock options, restricted stock, and employee stock purchases through the Company's Employee Stock Purchase Plan. Although stock-based compensation is an important aspect of the compensation of F5's employees and executives, management believes it is useful to exclude stock-based compensation expenses to better understand the long-term performance of the Company's core business and to facilitate comparison of the Company's results to those of peer companies.

Amortization and impairment of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. On a non-recurring basis, when certain events or circumstances are present, management may also be required to write down the carrying value of its purchased intangible assets and recognize impairment charges. Management does not believe these charges accurately reflect the performance of the Company's ongoing operations; therefore, they are not considered by management in making operating decisions. However, investors should note that the use of intangible assets contributed to F5's revenues earned during the periods presented and will contribute to F5's future period revenues as well.

Facility-exit costs. F5 has incurred certain non-recurring right-of-use asset impairment charges, and other related recurring costs in connection with the exit of its leased facilities. These charges are not representative of the ongoing activity or costs to the business. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.

Acquisition-related charges, net. F5 does not acquire businesses on a predictable cycle, and the terms and scope of each transaction can vary significantly and are unique to each transaction. F5 excludes acquisition-related charges from its non-GAAP financial measures to provide a useful comparison of the Company's operating results to prior periods and to its peer companies. Acquisition-related charges consist of planning, execution and integration costs incurred directly as a result of an acquisition.

Cyber incident costs. F5 has incurred certain non-recurring expenses in connection with the investigation and remediation of the Cyber Incident. Management believes it is useful to exclude these expenses as they are not representative of our ongoing operations and to facilitate comparison of the Company's historical results and to those of peer companies.

Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP financial statements, primarily related to workforce reductions and costs associated with exiting facility-lease commitments. F5 excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.

Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the Company's core business operations and facilitates comparisons to the Company's historical operating results. Although F5's management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management's reliance on this measure is limited because items excluded from such measures could have a material effect on F5's earnings and earnings per share calculated in accordance with GAAP. Therefore, F5's management will use its non-GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the Company's core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP.

F5 believes that presenting its non-GAAP measures of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the Company's core business and is used by management in its own evaluation of the Company's performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the Company provides investors these supplemental measures since, with reconciliation to GAAP, it may provide additional insight into the Company's operational performance and financial results.

For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section in our attached Condensed Consolidated Income Statements entitled "Non-GAAP Financial Measures."

About F5

F5, Inc. (NASDAQ: FFIV) is the global leader that delivers and secures every app. Backed by three decades of expertise, F5 has built the industry's premier platform—F5 Application Delivery and Security Platform (ADSP)—to deliver and secure every app, every API, anywhere: on-premises, in the cloud, at the edge, and across hybrid, multicloud environments. F5 is committed to innovating and partnering with the world's largest and most advanced organizations to deliver fast, available, and secure digital experiences. Together, we help each other thrive and bring a better digital world to life.

For more information visit f5.com

Explore F5 Labs threat research at f5.com/labs

F5 is a trademark, service mark, or tradename of F5, Inc., in the U.S. and other countries.

SOURCE: F5, Inc.

F5, Inc.
Consolidated Balance Sheets
(unaudited, in thousands)

	March 31,			September 30,
		2026			2025

Assets
Current assets
Cash and cash equivalents	$	1,442,811		$	1,344,273
Accounts receivable, net of allowances of $3,173 and $2,877		425,640			414,433
Inventories		90,297			77,229
Other current assets		743,754			682,766
Total current assets		2,702,502			2,518,701

Property and equipment, net		175,356			156,947
Operating lease right-of-use assets		184,461			185,601
Long-term investments		20,814			15,693
Deferred tax assets		467,457			446,388
Goodwill		2,443,605			2,443,882
Other assets, net		503,277			552,280
Total assets	$	6,497,472		$	6,319,492

Liabilities and Shareholders' Equity
Current liabilities
Accounts payable	$	79,521		$	83,972
Accrued liabilities		329,068			315,383
Deferred revenue		1,268,570			1,213,226
Total current liabilities		1,677,159			1,612,581

Deferred tax liabilities		1,926			1,921
Deferred revenue, long-term		849,740			786,011
Operating lease liabilities, long-term		226,579			230,749
Other long-term liabilities		92,493			96,231
Total long-term liabilities		1,170,738			1,114,912

Commitments and contingencies

Shareholders' equity
Preferred stock, no par value; 10,000 shares authorized, no shares issued and outstanding		-			-
Common stock, no par value; 200,000 shares authorized, 56,753 and 57,684
shares issued and outstanding		52,585			42,023
Accumulated other comprehensive loss		(19,035	)		(18,324	)
Retained earnings		3,616,025			3,568,300
Total shareholders' equity		3,649,575			3,591,999
Total liabilities and shareholders' equity	$	6,497,472		$	6,319,492

F5, Inc.
Consolidated Income Statements
(unaudited, in thousands, except per share amounts)


	Three Months Ended					Six Months Ended
	March 31,					March 31,
		2026			2025		2026			2025
Net revenues
Products	$	410,515		$	337,196	$	820,798		$	705,693
Services		401,185			393,927		813,367			791,919
Total		811,700			731,123		1,634,165			1,497,612

Cost of net revenues
Products		90,890			81,287		183,161			164,123
Services		60,010			59,672		119,524			117,346
Total		150,900			140,959		302,685			281,469
Gross profit		660,800			590,164		1,331,480			1,216,143

Operating expenses
Sales and marketing		239,411			218,061		464,188			424,096
Research and development		151,039			136,561		292,200			267,079
General and administrative		91,647			76,645		182,245			149,668
Restructuring charges		(315	)		-		(358	)		11,321
Total		481,782			431,267		938,275			852,164

Income from operations		179,018			158,897		393,205			363,979
Other income, net		10,199			12,303		18,934			16,265
Income before income taxes		189,217			171,200		412,139			380,244
Provision for income taxes		41,462			25,670		84,330			68,269
Net income	$	147,755		$	145,530	$	327,809		$	311,975

Net income per share - basic	$	2.61		$	2.51	$	5.73		$	5.37
Weighted average shares - basic		56,708			57,886		57,184			58,098

Net income per share - diluted	$	2.58		$	2.48	$	5.68		$	5.30
Weighted average shares - diluted		57,298			58,764		57,736			58,913

F5, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)


	Six Months Ended
	March 31,
		2026			2025

Operating activities
Net income	$	327,809		$	311,975
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation		128,001			116,792
Depreciation and amortization		49,185			45,137
Non-cash operating lease costs		14,959			15,792
Deferred income taxes		(20,582	)		(39,212	)
Other		(3,488	)		3,746
Changes in operating assets and liabilities (excluding effects of the acquisition of businesses):
Accounts receivable		(11,751	)		7,275
Inventories		(13,068	)		8,498
Other current assets		(59,744	)		(53,457	)
Other assets		21,379			(28,434	)
Accounts payable and accrued liabilities		(10,142	)		(33,844	)
Deferred revenue		119,073			124,640
Lease liabilities		(16,503	)		(19,529	)
Net cash provided by operating activities		525,128			459,379

Investing activities
Purchases of investments		(2,910	)		(1,900	)
Maturities of investments		402			-
Sales of investments		1,343			-
Acquisition of businesses, net of cash acquired		-			(10,100	)
Purchases of property and equipment		(28,066	)		(18,576	)
Net cash used in investing activities		(29,231	)		(30,576	)

Financing activities
Proceeds from the exercise of stock options and
purchases of stock under employee stock purchase plan		22,940			23,871
Payments for repurchase of common stock, including excise taxes		(401,102	)		(252,068	)
Taxes paid related to net share settlement of equity awards		(18,118	)		(16,083	)
Net cash used in financing activities		(396,280	)		(244,280	)

Net increase in cash, cash equivalents and restricted cash		99,617			184,523
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(1,031	)		(1,606	)
Cash, cash equivalents and restricted cash, beginning of period		1,346,368			1,078,340
Cash, cash equivalents and restricted cash, end of period	$	1,444,954		$	1,261,257

Supplemental disclosures of cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities	$	20,432		$	22,828
Supplemental disclosures of non-cash activities
Right-of-use assets obtained in exchange for lease obligations	$	14,619		$	36,893

F5, Inc.
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands, except percentages and per share amounts)


	Three Months Ended										Six Months Ended
	March 31,										March 31,
	2026					2025					2026					2025
Net revenues	$	811,700				$	731,123				$	1,634,165				$	1,497,612

Gross profit and gross margin:
GAAP gross profit and gross margin	$	660,800		81.4	%	$	590,164		80.7	%	$	1,331,480		81.5	%	$	1,216,143		81.2	%
Adjustments to gross profit and gross margin:
Stock-based compensation	$	7,473		0.9	%	$	7,393		1.0	%	$	14,299		0.9	%	$	14,793		1.0	%
Amortization and impairment of purchased intangible assets		10,640		1.3	%		9,283		1.3	%		21,280		1.3	%		18,567		1.2	%
Facility-exit costs		90		0.0	%		437		0.1	%		182		0.0	%		561		0.0	%
Cyber incident costs		770		0.1	%		-		-			1,646		0.1	%		-		-
Non-GAAP gross profit and gross margin	$	679,773		83.7	%	$	607,277		83.1	%	$	1,368,887		83.8	%	$	1,250,064		83.5	%

Income from operations and operating margin:
GAAP income from operations and operating margin	$	179,018		22.1	%	$	158,897		21.7	%	$	393,205		24.1	%	$	363,979		24.3	%
Adjustments to income from operations and operating margin:
Stock-based compensation	$	67,996		8.4	%	$	58,884		8.1	%	$	128,001		7.8	%	$	116,792		7.8	%
Amortization and impairment of purchased intangible assets		11,452		1.4	%		10,095		1.4	%		22,904		1.4	%		20,238		1.4	%
Facility-exit costs		922		0.1	%		4,264		0.6	%		1,853		0.1	%		5,484		0.4	%
Acquisition-related charges		9,021		1.1	%		1,214		0.2	%		18,838		1.2	%		1,905		0.1	%
Cyber incident costs		6,037		0.7	%		-		-			23,525		1.4	%		-		-
Restructuring charges		(315	)	0.0	%		-		-			(358	)	0.0	%		11,321		0.8	%
Non-GAAP income from operations and operating margin	$	274,131		33.8	%	$	233,354		31.9	%	$	587,968		36.0	%	$	519,719		34.7	%

Net income:
GAAP net income	$	147,755				$	145,530				$	327,809				$	311,975
Adjustments to net income:
Stock-based compensation	$	67,996				$	58,884				$	128,001				$	116,792
Amortization and impairment of purchased intangible assets		11,452					10,095					22,904					20,238
Facility-exit costs		922					4,264					1,853					5,484
Acquisition-related charges		9,021					1,214					18,838					1,905
Cyber incident costs		6,037					-					23,525					-
Restructuring charges		(315	)				-					(358	)				11,321
Tax effects related to above items		(19,672	)				(18,893	)				(40,613	)				(39,649	)
Non-GAAP net income	$	223,196				$	201,094				$	481,959				$	428,066

Net income per share - diluted:
GAAP net income per share — diluted	$	2.58				$	2.48				$	5.68				$	5.30
Adjustments to GAAP net income per share — diluted:
Stock-based compensation	$	1.19				$	1.00				$	2.22				$	1.98
Amortization and impairment of purchased intangible assets		0.20					0.17					0.40					0.34
Facility-exit costs		0.02					0.07					0.03					0.09
Acquisition-related charges		0.16					0.02					0.33					0.03
Cyber incident costs		0.11					-					0.41					-
Restructuring charges		(0.01	)				-					(0.01	)				0.19
Tax effects related to above items		(0.34	)				(0.32	)				(0.70	)				(0.67	)
Non-GAAP net income per share — diluted	$	3.90				$	3.42				$	8.35				$	7.27

Weighted average shares — diluted		57,298					58,764					57,736					58,913


Note: Numbers and percentages are rounded for presentation purposes and may not foot.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428200491/en/

Investors
Suzanne DuLong
+1 (206) 272-7049
s.dulong@f5.com

Media
Rob Gruening
+1 (206) 272-6208
r.gruening@f5.com

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