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Contacts
Investors
Suzanne DuLong
+1 (206) 272-7049
s.dulong@f5.com
Media
Rob Gruening
+1 (206) 272-6208
r.gruening@f5.com


F5 Reports Third Quarter Results with 19% Product Revenue Growth
Driving 11% Total Revenue Growth Year Over Year

SEATTLE, July 27, 2026 – F5, Inc. (NASDAQ: FFIV), the global leader in delivering and securing every app and API, today announced financial results for its third quarter fiscal year 2026 ended June 30, 2026.

“Q3 was another outstanding quarter with 19% product revenue growth driving 11% total revenue growth year over year,” said François Locoh-Donou, F5’s Chairman, President, and CEO. “Eight consecutive quarters of double-digit product growth reflect the mission-critical role F5 plays at the application delivery and security layer of today’s hybrid multicloud and AI-driven enterprise infrastructure.”

“The world runs on applications and the threats targeting them have never been more sophisticated. AI has empowered attackers and compressed the time between vulnerability discovery and exploitation. F5’s response is a continuous defense model built for this new reality. We are using AI to empower our customers to stay ahead of threats across every environment they operate in by identifying risk earlier, protecting applications at runtime, and delivering hardened software faster,” continued Locoh-Donou.

Third Quarter Performance Summary
Third quarter fiscal year 2026 revenue totaled $865 million, representing 11% growth compared with $780 million in the third quarter of fiscal year 2025. Systems revenue of $240 million grew 32% from the year-ago period while software revenue of $223 million grew 7%. Services revenue of $402 million grew 3% from the year-ago period.

GAAP gross profit for the third quarter of fiscal year 2026 was $712 million, representing GAAP gross margin of 82.2%. This compares with GAAP gross profit of $632 million in the year-ago period, which represented GAAP gross margin of 81.0%. Non-GAAP gross profit for the third quarter of fiscal year 2026 was $728 million, representing non-GAAP gross margin of 84.2%. This compares with non-GAAP gross profit of $649 million in the year-ago period, which represented non-GAAP gross margin of 83.1%.

GAAP income from operations for the third quarter of fiscal year 2026 was $213 million, representing GAAP operating margin of 24.7%. This compares with GAAP income from operations of $196 million in the year-ago period, which represented GAAP operating margin of 25.2%. Non-

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GAAP income from operations for the period was $303 million, representing non-GAAP operating margin of 35.0%. This compares to non-GAAP income from operations of $267 million in the year-ago period, which represented non-GAAP operating margin of 34.3%.

GAAP net income for the third quarter of fiscal year 2026 was $208 million, or $3.62 per diluted share compared to $190 million, or $3.25 per diluted share, in the third quarter of fiscal year 2025. Non-GAAP net income for the third quarter of fiscal year 2026 was $272 million, or $4.73 per diluted share, compared to $243 million, or $4.16 per diluted share, in the third quarter of fiscal year 2025.
Performance Summary Tables
GAAP MeasuresNon-GAAP Measures
($ in millions except EPS)Q3 FY2026Q3 FY2025($ in millions except EPS)Q3 FY2026Q3 FY2025
Revenue$865$780Revenue$865$780
Gross profit$712$632Gross profit$728$649
Gross margin82.2%81.0%Gross margin84.2%83.1%
Income from operations$213$196Income from operations$303$267
Operating margin24.7%25.2%Operating margin35.0%34.3%
Net income$208$190Net income$272$243
EPS$3.62$3.25EPS$4.73$4.16
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 of approximately 9% to 10%, up from 7% to 8% previously. F5 expects non-GAAP earnings per share in a range of $17.21 to $17.33, up from $16.25 to $16.55 previously.

For the fourth quarter of fiscal year 2026, F5 is guiding to revenue in the range of $870 million to $890 million, with non-GAAP earnings in the range of $4.14 to $4.26 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, insurance recoveries from cyber incident, 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.

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Live Webcast and Conference Call
F5 will host a live webcast to review its financial results and outlook today, July 27, 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 outside the U.S. 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 eight consecutive quarters of double-digit product growth reflect the mission-critical role F5 plays at the application delivery and security layer of today’s hybrid multicloud and AI-driven enterprise infrastructure, the world runs on applications and the threats targeting them have never been more sophisticated, AI has empowered attackers and compressed the time between vulnerability discovery and exploitation, F5’s response is a continues defense model built for this new reality, F5 is using AI to empower our customers to stay ahead of threats across every environment they operate in by identifying risk earlier, protecting applications at runtime, and delivering hardened software faster, 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

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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, cyber incident costs, insurance recoveries from cyber incident, restructuring charges, net of tax effects, as well as 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.

Insurance recoveries from cyber incident. F5 has received insurance recoveries in connection with the cyber incident costs described above. Management believes it is useful to exclude these recoveries as they offset

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the cyber incident costs non-GAAP adjustment, 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 

Follow to learn more about F5, our partners, and technologies: Blog | LinkedIn | X | YouTube | Instagram | Facebook 

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)
 June 30,September 30,
 20262025
ASSETS
Current assets
Cash and cash equivalents$1,605,782 $1,344,273 
Accounts receivable, net of allowances of $2,788 and $2,877
428,678 414,433 
Inventories126,890 77,229 
Other current assets785,623 682,766 
Total current assets2,946,973 2,518,701 
Property and equipment, net197,284 156,947 
Operating lease right-of-use assets178,239 185,601 
Long-term investments21,991 15,693 
Deferred tax assets487,177 446,388 
Goodwill2,482,495 2,443,882 
Other assets, net514,915 552,280 
Total assets$6,829,074 $6,319,492 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$136,157 $83,972 
Accrued liabilities344,442 315,383 
Deferred revenue1,289,567 1,213,226 
Total current liabilities1,770,166 1,612,581 
Deferred tax liabilities1,949 1,921 
Deferred revenue, long-term903,131 786,011 
Operating lease liabilities, long-term218,700 230,749 
Other long-term liabilities79,399 96,231 
Total long-term liabilities1,203,179 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, 56,826 and 57,684 shares issued and outstanding
50,542 42,023 
Accumulated other comprehensive loss(19,046)(18,324)
Retained earnings3,824,233 3,568,300 
Total shareholders’ equity3,855,729 3,591,999 
Total liabilities and shareholders’ equity$6,829,074 $6,319,492 


F5, Inc.
Consolidated Income Statements
(unaudited, in thousands, except per share amounts)
 Three Months EndedNine Months Ended
June 30,June 30,
 2026202520262025
Net revenues
Products$462,829 $388,838 $1,283,627 $1,094,531 
Services402,248 391,532 1,215,615 1,183,451 
Total865,077 780,370 2,499,242 2,277,982 
Cost of net revenues
Products93,498 88,782 276,659 252,905 
Services60,066 59,846 179,590 177,192 
Total153,564 148,628 456,249 430,097 
Gross profit711,513 631,742 2,042,993 1,847,885 
Operating expenses
Sales and marketing238,026 220,428 702,214 644,524 
Research and development164,661 136,345 456,861 403,424 
General and administrative95,589 78,652 277,834 228,320 
Restructuring charges(30)— (388)11,321 
Total498,246 435,425 1,436,521 1,287,589 
Income from operations213,267 196,317 606,472 560,296 
Other income, net12,932 16,706 31,866 32,971 
Income before income taxes226,199 213,023 638,338 593,267 
Provision for income taxes17,991 23,111 102,321 91,380 
Net income$208,208 $189,912 $536,017 $501,887 
Net income per share — basic$3.67 $3.29 $9.40 $8.65 
Weighted average shares — basic56,726 57,772 57,031 57,989 
Net income per share — diluted$3.62 $3.25 $9.29 $8.54 
Weighted average shares — diluted57,550 58,492 57,674 58,773 


F5, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
 Nine Months Ended
June 30,
 20262025
Operating activities
Net income$536,017 $501,887 
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation193,535 174,243 
Depreciation and amortization72,613 67,608 
Non-cash operating lease costs22,377 23,727 
Deferred income taxes(38,644)(56,308)
Other(3,300)3,918 
Changes in operating assets and liabilities (excluding effects of the acquisition of businesses):
Accounts receivable(14,262)26,834 
Inventories(49,661)9,458 
Other current assets(101,005)(54,523)
Other assets5,618 (68,332)
Accounts payable and accrued liabilities50,995 (19,031)
Deferred revenue192,266 159,003 
Lease liabilities(25,176)(26,886)
Net cash provided by operating activities841,373 741,598 
Investing activities
Purchases of investments(4,850)(4,400)
Maturities of investments402 — 
Sales of investments1,575 — 
Acquisition of businesses, net of cash acquired(47,619)(24,170)
Purchases of property and equipment(63,705)(27,119)
Net cash used in investing activities(114,197)(55,689)
Financing activities
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan59,596 59,018 
Payments for repurchase of common stock, including excise taxes(501,109)(377,077)
Taxes paid related to net share settlement of equity awards(22,664)(19,601)
Net cash used in financing activities(464,177)(337,660)
Net increase in cash, cash equivalents and restricted cash262,999 348,249 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(1,375)2,442 
Cash, cash equivalents and restricted cash, beginning of period1,346,368 1,078,340 
Cash, cash equivalents and restricted cash, end of period$1,607,992 $1,429,031 
Supplemental disclosures of cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities$31,490 $34,121 
Supplemental disclosures of non-cash activities
Right-of-use assets obtained in exchange for lease obligations$15,744 $37,198 


F5, Inc.
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands, except percentages and per share amounts)
 Three Months EndedNine Months Ended
June 30,June 30,
 2026202520262025
Net revenues$865,077 $780,370 $2,499,242 $2,277,982 
Gross profit and gross margin:
GAAP gross profit and gross margin$711,513 82.2 %$631,742 81.0 %$2,042,993 81.7 %$1,847,885 81.1 %
Adjustments to gross profit and gross margin:
Stock-based compensation$6,905 0.8 %$7,408 0.9 %$21,204 0.8 %$22,201 1.0 %
Amortization and impairment of purchased intangible assets9,152 1.1 %9,438 1.2 %30,432 1.2 %28,005 1.2 %
Facility-exit costs121 0.0 %118 0.0 %303 0.0 %679 0.0 %
Acquisition-related charges— 0.0 %— — — 0.0 %— — 
Cyber incident costs770 0.1 %— — 2,416 0.1 %— — 
Non-GAAP gross profit and gross margin$728,461 84.2 %$648,706 83.1 %$2,097,348 83.9 %$1,898,770 83.4 %
Income from operations and operating margin:
GAAP income from operations and operating margin$213,267 24.7 %$196,317 25.2 %$606,472 24.3 %$560,296 24.6 %
Adjustments to income from operations and operating margin:
Stock-based compensation$65,534 7.6 %$57,451 7.4 %$193,535 7.7 %$174,243 7.6 %
Amortization and impairment of purchased intangible assets9,619 1.1 %10,250 1.3 %32,523 1.3 %30,488 1.3 %
Facility-exit costs1,224 0.1 %1,243 0.2 %3,077 0.1 %6,727 0.3 %
Acquisition-related charges10,064 1.2 %2,032 0.3 %28,902 1.2 %3,937 0.2 %
Cyber incident costs2,978 0.3 %— — 26,503 1.1 %— — 
Restructuring charges(30)0.0 %— — (388)0.0 %11,321 0.5 %
Non-GAAP income from operations and operating margin$302,656 35.0 %$267,293 34.3 %$890,624 35.6 %$787,012 34.5 %
Net income:
GAAP net income $208,208 $189,912 $536,017 $501,887 
Adjustments to net income:
Stock-based compensation$65,534 $57,451 $193,535 $174,243 
Amortization and impairment of purchased intangible assets9,619 10,250 32,523 30,488 
Facility-exit costs1,224 1,243 3,077 6,727 
Acquisition-related charges10,064 2,032 28,902 3,937 
Cyber incident costs2,978 — 26,503 — 
Insurance recoveries from cyber incident(5,309)— (5,309)— 
Restructuring charges(30)— (388)11,321 
Tax effects related to above items(20,344)(17,647)(60,957)(57,296)
Non-GAAP net income$271,944 $243,241 $753,903 $671,307 
Net income per share - diluted:
GAAP net income per share — diluted$3.62 $3.25 $9.29 $8.54 
Adjustments to GAAP net income per share — diluted
Stock-based compensation$1.14 $0.98 $3.36 $2.96 
Amortization and impairment of purchased intangible assets0.17 0.18 0.56 0.52 
Facility-exit costs0.02 0.02 0.05 0.11 
Acquisition-related charges0.17 0.03 0.50 0.07 
Cyber incident costs0.05 — 0.46 — 
Insurance recoveries from cyber incident
(0.09)— (0.09)— 
Restructuring charges(0.00)— (0.01)0.19 
Tax effects related to above items(0.35)(0.30)(1.06)(0.97)
Non-GAAP net income per share — diluted$4.73 $4.16 $13.07 $11.42 
Weighted average shares — diluted57,550 58,492 57,674 58,773 
Note: Numbers and percentages are rounded for presentation purposes and may not foot.