01—Abstract
Summary
Summary of the 10-Q filed February 5, 2026. Cited figures are marked; the original filing is the authoritative source.
F5, Inc. (FFIV) reported solid financial results for the quarter ended December 31, 2025.
Total revenues increased by 7.3% year-over-year to $822.5 milliona, driven by a significant 11.3% surge in product revenues to $410.3 million, primarily due to strong performance in systems. Service revenues also saw a modest increase of 3.6% to $412.2 million. Net income grew by 8.2% to $180.1 million, resulting in diluted earnings per share of $3.10, up from $2.82 in the prior year period.
The company's gross margin remained strong at 81.5%b. The company successfully integrated the acquisition of CalypsoAI Corp. in September 2025, enhancing its AI security offerings. While F5 continues to invest in research and development and sales and marketing, it also executed a substantial share repurchase program, returning capital to shareholders.
Management expressed confidence in the company's liquidity and ability to meet its obligations, with cash and equivalents totaling $1.2 billionc at quarter-end. Investors should monitor the ongoing legal proceedings and the potential impact of the previously disclosed Cyber Incident.
02—Key points
Key Highlights
- Total revenues grew 7.3% year-over-year to $822.5 million.
- Product revenues increased significantly by 11.3% to $410.3 million, led by a 36.7% rise in systems revenue.
- Net income rose 8.2% to $180.1 million, with diluted EPS reaching $3.10.
- Gross margin remained robust at 81.5%.
- F5 acquired CalypsoAI Corp. in September 2025 to bolster its AI security capabilities.
- The company repurchased $301 million of its common stock during the quarter.
- Cash and cash equivalents stood at $1.2 billion at the end of the period.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, F5, Inc. kept $0.22.
- Revenue$822.5M100.0%
- Cost of revenue−$151.8M18.5%
- Gross profit$670.7M81.5%
- Operating costs−$456.5M55.5%
- Operating income$214.2M26.0%
- Interest, other & tax−$34.1M4.2%
- Net income$180.1M21.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed February 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $822.47M$766.49M | +7.3% |
| Cost of Revenue | $151.78M$140.51M | +8.0% |
| Gross Profit | $670.68M$625.98M | +7.1% |
| R&D Expenses | $141.16M$130.52M | +8.2% |
| Operating Expenses | $456.49M$420.90M | +8.5% |
| Operating Income | $214.19M$205.08M | +4.4% |
| Net Income | $180.05M$166.44M | +8.2% |
| EPS (Basic) | $3.12$2.85 | +9.5% |
| EPS (Diluted) | $3.10$2.82 | +9.9% |
| Shares Outstanding (Basic) | 57.65M58.30M | −1.1% |
| Shares Outstanding (Diluted) | 58.16M59.06M | −1.5% |
05—Questions
Frequently Asked Questions
How did F5's revenue performance compare to the prior year's quarter?
F5's total revenues increased by 7.3% year-over-year to $822.5 million for the quarter ended December 31, 2025. Product revenues were particularly strong, up 11.3% to $410.3 million, driven by systems, while service revenues increased by 3.6% to $412.2 million.
What was the impact of the CalypsoAI acquisition?
F5 acquired CalypsoAI Corp. on September 26, 2025, for $145.2 million. This acquisition enhances F5's application delivery and security solutions by integrating CalypsoAI's enterprise AI security platform, focusing on threat defense, red teaming, and data security for generative AI.
How is F5 managing its capital and returning value to shareholders?
F5 reported strong liquidity with $1.2 billion in cash and cash equivalents. During the quarter, the company significantly increased its share repurchase activity, spending $301 million to buy back common stock. As of December 31, 2025, $622.4 million remained authorized under its share repurchase program.
Are there any significant legal or cybersecurity risks F5 is facing?
F5 is involved in ongoing legal proceedings, including a remanded copyright claim related to NGINX and a putative class action lawsuit concerning cybersecurity disclosures. Additionally, the company disclosed a significant Cyber Incident on October 15, 2025, involving a threat actor's access to F5 systems and data exfiltration. The company incurred $17.5 million in response costs during the quarter and anticipates further expenses, though some may be recoverable under insurance.
06—Continue