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F5 Q4 Earnings and Revenues Beat Estimates, Stock Down on Dim Guidance
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Key Takeaways
F5's Q4 EPS of $4.39 beat estimates by 10.86%, rising 19.6% year over year on 8% revenue growth.
Product revenues climbed 15.6%, fueled by a 42% surge in Systems demand for infrastructure upgrades.
Despite strong results, weak Q1 guidance and a security incident outlook pushed FFIV shares down 6.8%.
F5, Inc. (FFIV - Free Report) reported better-than-expected results for the fourth quarter of fiscal 2025. FFIV reported fourth-quarter non-GAAP earnings per share (EPS) of $4.39, which surpassed the Zacks Consensus Estimate by 10.86% and came ahead of management’s guidance of $3.87-$3.99 (midpoint of $3.93). The bottom line increased 19.6% year over year.
F5’s revenues of $810 million for the fourth quarter beat the consensus mark by 2.22%. The top line rose 8% on a year-over-year basis. Revenues also came ahead of management’s guidance of $780-$800 million (midpoint of $790 million).
Despite reporting strong fourth-quarter results, shares of F5 plunged 6.8% during Monday’s extended trading session as revenue and EPS guidance for the first quarter of fiscal 2026 fell short of the Zacks Consensus Estimate. The company warned that the recent security incident could potentially disrupt sales in the near term.
Product revenues (51.1% of total revenues), which comprise the Software and Systems subdivisions, increased 15.6% year over year to $414.1 million. Our model estimates for the Product segment revenues were pegged at $397.9 million.
This growth was primarily driven by a robust 42% year-over-year jump in Systems revenues, which totaled $186 million. Systems accounted for approximately 45% of total Product revenues, showing continued momentum due to demand for infrastructure upgrades. Our model estimates for the Systems revenues were pegged at $163.4 million.
The Software sub-segment also contributed to the growth, with revenues rising 0.3% year over year to $229 million. Our model estimates for the Software revenues were pegged at $234.5 million.
Global Services revenues (48.9% of total revenues) grew 2% year over year to $396 million. Our model estimates for the Global Services segment revenues were pegged at $393.4 million.
Non-GAAP gross profit increased 10.3% year over year to $683 million. The non-GAAP gross margin for the quarter came in at 84.3%, up 130 basis points from the year-ago quarter’s 83%. Non-GAAP operating income soared 16.5% to $299.4 million, while the margin improved 260 basis points to 37%.
F5’s Balance Sheet & Cash Flow
F5 ended the September quarter with cash and short-term investments of $1.36 billion, down from $1.44 billion in the previous quarter. The company generated an operating cash flow of $208 million during the reported quarter and $950 million for the full fiscal 2025.
In the fiscal fourth quarter, F5 repurchased shares worth $125 million. During the first nine months of fiscal 2025, the company repurchased shares worth $502 million.
F5 Initiates Q1 & FY26 Guidance
For the first quarter of fiscal 2026, F5 expects revenues between $730 million and $780 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $789.4 million, suggesting year-over-year growth of approximately 3%.
The company projected a non-GAAP EPS in the range of $3.35-$3.85 (midpoint $3.60) for the first quarter of fiscal 2026. The Zacks Consensus Estimate for the first-quarter EPS stands at $4.02, indicating a year-over-year increase of 4.7%.
F5 anticipates that its fiscal 2026 revenues will grow in the mid-single-digit range. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $3.19 billion, indicating year-over-year growth of 3.9%.
Non-GAAP EPS is projected between $14.50 and $15.50. The Zacks Consensus Estimate for fiscal 2026 EPS stands at $16.00, implying year-over-year growth of 4%.
The Zacks Consensus Estimate for Impinj’s full-year 2025 earnings is pegged at $1.98 per share, revised upward by 4 cents over the past 30 days and suggests a year-over-year decline of 6.2%. Impinj shares have soared 63.7% year to date.
The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, implying an increase of 191.4% year over year. Credo Technology Group shares have surged 133.9% year to date.
The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has moved upward to $3.22 per share from $3.03 per share in the past seven days, calling for 70.4% year-over-year growth. Amphenol shares have risen 95.7% year to date.
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F5 Q4 Earnings and Revenues Beat Estimates, Stock Down on Dim Guidance
Key Takeaways
F5, Inc. (FFIV - Free Report) reported better-than-expected results for the fourth quarter of fiscal 2025. FFIV reported fourth-quarter non-GAAP earnings per share (EPS) of $4.39, which surpassed the Zacks Consensus Estimate by 10.86% and came ahead of management’s guidance of $3.87-$3.99 (midpoint of $3.93). The bottom line increased 19.6% year over year.
F5’s revenues of $810 million for the fourth quarter beat the consensus mark by 2.22%. The top line rose 8% on a year-over-year basis. Revenues also came ahead of management’s guidance of $780-$800 million (midpoint of $790 million).
Despite reporting strong fourth-quarter results, shares of F5 plunged 6.8% during Monday’s extended trading session as revenue and EPS guidance for the first quarter of fiscal 2026 fell short of the Zacks Consensus Estimate. The company warned that the recent security incident could potentially disrupt sales in the near term.
F5, Inc. Price, Consensus and EPS Surprise
F5, Inc. price-consensus-eps-surprise-chart | F5, Inc. Quote
FFIV’s Q4 2025 Details
Product revenues (51.1% of total revenues), which comprise the Software and Systems subdivisions, increased 15.6% year over year to $414.1 million. Our model estimates for the Product segment revenues were pegged at $397.9 million.
This growth was primarily driven by a robust 42% year-over-year jump in Systems revenues, which totaled $186 million. Systems accounted for approximately 45% of total Product revenues, showing continued momentum due to demand for infrastructure upgrades. Our model estimates for the Systems revenues were pegged at $163.4 million.
The Software sub-segment also contributed to the growth, with revenues rising 0.3% year over year to $229 million. Our model estimates for the Software revenues were pegged at $234.5 million.
Global Services revenues (48.9% of total revenues) grew 2% year over year to $396 million. Our model estimates for the Global Services segment revenues were pegged at $393.4 million.
Non-GAAP gross profit increased 10.3% year over year to $683 million. The non-GAAP gross margin for the quarter came in at 84.3%, up 130 basis points from the year-ago quarter’s 83%. Non-GAAP operating income soared 16.5% to $299.4 million, while the margin improved 260 basis points to 37%.
F5’s Balance Sheet & Cash Flow
F5 ended the September quarter with cash and short-term investments of $1.36 billion, down from $1.44 billion in the previous quarter. The company generated an operating cash flow of $208 million during the reported quarter and $950 million for the full fiscal 2025.
In the fiscal fourth quarter, F5 repurchased shares worth $125 million. During the first nine months of fiscal 2025, the company repurchased shares worth $502 million.
F5 Initiates Q1 & FY26 Guidance
For the first quarter of fiscal 2026, F5 expects revenues between $730 million and $780 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $789.4 million, suggesting year-over-year growth of approximately 3%.
The company projected a non-GAAP EPS in the range of $3.35-$3.85 (midpoint $3.60) for the first quarter of fiscal 2026. The Zacks Consensus Estimate for the first-quarter EPS stands at $4.02, indicating a year-over-year increase of 4.7%.
F5 anticipates that its fiscal 2026 revenues will grow in the mid-single-digit range. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $3.19 billion, indicating year-over-year growth of 3.9%.
Non-GAAP EPS is projected between $14.50 and $15.50. The Zacks Consensus Estimate for fiscal 2026 EPS stands at $16.00, implying year-over-year growth of 4%.
FFIV’s Zacks Rank & Stocks to Consider
Currently, F5 carries a Zacks Rank #3 (Hold).
Impinj (PI - Free Report) , Credo Technology Group (CRDO - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Impinj’s full-year 2025 earnings is pegged at $1.98 per share, revised upward by 4 cents over the past 30 days and suggests a year-over-year decline of 6.2%. Impinj shares have soared 63.7% year to date.
The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, implying an increase of 191.4% year over year. Credo Technology Group shares have surged 133.9% year to date.
The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has moved upward to $3.22 per share from $3.03 per share in the past seven days, calling for 70.4% year-over-year growth. Amphenol shares have risen 95.7% year to date.