F5, Inc. — Fourth Quarter Fiscal Year 2026 Earnings Summary

Financial Performance:

• Q4 FY26 total revenue was $917 million, a 13% increase year-over-year from $810 million in Q4 FY25.
• Q4 FY26 product revenue was $510 million, up 23% year-over-year from $414 million.
• Q4 FY26 systems revenue was $239 million, up 29% year-over-year; software revenue was $271 million, up 19% year-over-year.
• Q4 FY26 services revenue was $408 million, up 3% year-over-year.
• Full-year FY26 total revenue was $3,417 million, an 11% increase from $3,088 million in FY25.
• Full-year FY26 product revenue was $1,793 million, up 19% year-over-year.
• Full-year FY26 systems revenue was $923 million, up 31% year-over-year; software revenue was $870 million, up 8% year-over-year.
• Full-year FY26 services revenue was $1,623 million, up 3% year-over-year.
• Q4 FY26 GAAP gross margin was 82.2% (vs. 82.2% in Q4 FY25); Non-GAAP gross margin was 84.0% (vs. 84.3% in Q4 FY25).
• Q4 FY26 GAAP operating margin was 23.1% (vs. 25.4% in Q4 FY25); Non-GAAP operating margin was 33.7% (vs. 37.0% in Q4 FY25).
• Q4 FY26 GAAP net income was $186 million ($3.23 diluted EPS) vs. $190 million ($3.26 diluted EPS) in Q4 FY25.
• Q4 FY26 Non-GAAP net income was $255 million ($4.42 diluted EPS) vs. $257 million ($4.39 diluted EPS) in Q4 FY25.
• Full-year FY26 GAAP operating margin was 23.9% (vs. 24.8% in FY25); Non-GAAP operating margin was 35.1% (vs. 35.2% in FY25).
• Full-year FY26 GAAP net income was $722 million ($12.52 diluted EPS) vs. $692 million ($11.80 diluted EPS) in FY25.
• Full-year FY26 Non-GAAP net income was $1,009 million ($17.49 diluted EPS) vs. $928 million ($15.81 diluted EPS) in FY25.
• Q4 FY26 GAAP income from operations was $212 million; Non-GAAP income from operations was $309 million.
• FY26 GAAP income from operations was $818 million; Non-GAAP income from operations was $1,200 million.
• Cash and cash equivalents as of September 30, 2026, were $1.59 billion, up from $1.34 billion in September 2025.
• Deferred revenue (current and long-term) totaled $2.20 billion as of September 30, 2026, up from $2.00 billion in September 2025.
• Net cash provided by operating activities for FY26 was $959 million, compared to $950 million in FY25.
• Net cash used in financing activities for FY26 was $567 million, primarily driven by $601 million in stock repurchases.

Guidance and Future Outlook:

• F5 guides for FY27 revenue growth of 8% to 9%.
• F5 guides for FY27 Non-GAAP earnings per share in the range of $18.00 to $18.30.
• F5 guides for Q1 FY27 revenue in the range of $875 million to $895 million.
• F5 guides for Q1 FY27 Non-GAAP earnings per share in the range of $4.25 to $4.37.

Business Segments and Product Lines:

• Product revenue growth (23% in Q4, 19% in FY) is driven by customer adoption of hybrid multicloud solutions and AI-driven security needs.
• Systems revenue showed strong growth of 29% in Q4 and 31% in FY.
• Software revenue grew 19% in Q4 and 8% in FY.
• Services revenue grew 3% in both Q4 and FY.
• Nine consecutive quarters of double-digit product revenue growth were reported.

Market and Competitive Landscape:

• The company cites an intensifying threat landscape and rapidly evolving AI-driven world as key market drivers.
• Frontier AI is described as rewriting enterprise security rules, accelerating vulnerability discovery to machine speed, and expanding attack surfaces through APIs and AI agents.
• F5 positions its platform to enforce consistent protection at runtime across every environment using AI to identify risk earlier.

Risks and Challenges:

• Forward-looking statements are subject to risks including customer acceptance of offerings, supply chain disruptions, and geopolitical uncertainties.
• Risks include IT spending fluctuations, integration of acquired businesses, and competitive factors such as pricing pressures and new entrants.
• Potential security flaws, cybersecurity attacks, and natural catastrophic events are identified as risks.
• Non-GAAP guidance excludes amortization, share-based compensation, tax legislation effects, and non-recurring charges; variability in these items could significantly impact GAAP results.

Management Commentary and Tone:

• CEO François Locoh-Donou described Q4 as closing an "exceptional fiscal year."
• Management highlighted F5's expanding strategic role as customers navigate hybrid multicloud complexity.
• The tone emphasizes confidence in F5's ability to help customers meet the challenges of Frontier AI and API security.

Other Key Points:

• The Board of Directors authorized an additional $1.5 billion for the common stock repurchase program.
• This authorization is incremental to the $322 million remaining in the existing program.
• F5 paid $601 million for repurchases of common stock during FY26.
• The company hosted a live webcast on October 27, 2026, to review results and outlook.
• GAAP to Non-GAAP reconciliations exclude stock-based compensation, amortization, facility-exit costs, acquisition charges, cyber incident costs, insurance recoveries, and restructuring charges.