Research · Sep 3, 2026
[FFIV] F5 Thesis 2026: Security Incident Resets Near-Term Revenue, Long-Term Thesis Intact
F5, Inc. FY25 (Sep year-end) revenue $3.09B (+10%); op income $766M (+16%); NI $692M (+22%); EPS $11.80 (+24%). Q4 revenue $810M (+8%). Q4 product revenue $414M (+16% YoY); Systems revenue $186M (+42% YoY); software $229M (perpetual license +25% / subscription -3%). Q4 services revenue $396M (+2%). FY software $803M (+9%; subscriptions 85% of FY software). FY security revenue $1.2B (+6%, 39% of total revenue); standalone security $463M (31% of product). Q4 recurring revenue 72%. CalypsoAI acquired (AI security). Michael Montoya joined as CTO. Cybersecurity incident disclosed on Q4 call dominates near-term FY26 outlook (customer delays + project deferrals + resource allocation to incident response). FY26 guide: revenue growth 0-4% (non-GAAP) due to near-term incident impact; gross margin 83-83.5%; non-GAAP operating margin 33.5-34.5%; Q1 FY26 revenue $730M-$780M; Q1 non-GAAP EPS $3.35-$3.85.