F5 Q1 revenue beats analyst expectations on product growth

Overview

• App security firm's fiscal Q1 revenue rose 7%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Product revenue grew 11%, driven by 37% increase in systems revenue

Outlook

• F5 raises fiscal year 2026 revenue growth outlook to 5%-6% from 0%-4%

• Company expects fiscal year 2026 non-GAAP EPS of $15.65-$16.05, up from $14.50-$15.50

• F5 guides Q2 fiscal year 2026 revenue between $770 mln and $790 mln

Result Drivers

• PRODUCT REVENUE - F5 reported 11% growth in product revenue, driven by a 37% increase in systems revenue

• MARKET DEMAND DRIVERS - Co attributes growth to demand for hybrid multicloud architectures and AI adoption

• SERVICES REVENUE - Global services revenue increased by 4% from the year-ago period

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for F5 Inc is $290.00, about 8.4% above its January 26 closing price of $267.45

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw2d3Bs2a

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