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Why Is F5 (FFIV) Down 10.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for F5 Networks (FFIV - Free Report) . Shares have lost about 10.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is F5 due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for F5, Inc. before we dive into how investors and analysts have reacted as of late.
F5 Q4 Earnings and Revenues Beat Estimates
F5 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).
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 company projected a non-GAAP EPS in the range of $3.35-$3.85 (midpoint $3.60) for the first quarter of fiscal 2026.
F5 anticipates that its fiscal 2026 revenues will grow in the mid-single-digit range. Non-GAAP EPS is projected between $14.50 and $15.50.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -13.23% due to these changes.
VGM Scores
Currently, F5 has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise F5 has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is F5 (FFIV) Down 10.3% Since Last Earnings Report?
It has been about a month since the last earnings report for F5 Networks (FFIV - Free Report) . Shares have lost about 10.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is F5 due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for F5, Inc. before we dive into how investors and analysts have reacted as of late.
F5 Q4 Earnings and Revenues Beat Estimates
F5 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).
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 company projected a non-GAAP EPS in the range of $3.35-$3.85 (midpoint $3.60) for the first quarter of fiscal 2026.
F5 anticipates that its fiscal 2026 revenues will grow in the mid-single-digit range. Non-GAAP EPS is projected between $14.50 and $15.50.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -13.23% due to these changes.
VGM Scores
Currently, F5 has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise F5 has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.