01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
F5, INC. (FFIV) reported solid financial results for the six months ended March 31, 2026, demonstrating continued growth and profitability.
Total net revenues increased by 9.1% year-over-year to $1.63 billiona, driven by a robust 16.3% rise in product revenues, which benefited from strong demand for both systems and software solutions. Service revenues also saw a modest increase of 2.7%. The company maintained healthy gross margins around 81.5%, reflecting effective cost management.
Net income grew to $327.8 millionb, an increase of 5.1% compared to the prior year's period, with diluted EPS reaching $5.68. The company continues to invest in growth, with R&D expenses up 9.4% and sales and marketing expenses up 9.5%, indicating a strategic focus on innovation and market expansion. Financially, F5, Inc. maintains a strong liquidity position with $1.44 billion in cash, cash equivalents, and restricted cash as of March 31, 2026.
Operating activities generated a significant $525.1 millionc in cash flow, underscoring the company's operational efficiency. However, the company was active in returning capital to shareholders, with $401.1 million used for share repurchases during the six-month period, alongside $18.1 million for taxes related to net share settlements of equity awards.
The company also faces ongoing legal proceedings, including a copyright claim related to NGINX and a securities class action lawsuit, alongside the previously disclosed Cyber Incident. While these present uncertainties, management remains confident in its defense and the overall financial stability of the company.
02—Key points
Key Highlights
- Total net revenues increased by 9.1% to $1.63 billion for the six months ended March 31, 2026, compared to $1.50 billion in the prior year.
- Product revenues grew significantly by 16.3% to $820.8 million, primarily driven by systems revenue which increased by 31.1%.
- Gross profit reached $1.33 billion for the six months ended March 31, 2026, with gross margin remaining strong at 81.5%.
- Net income increased by 5.1% to $327.8 million for the six months ended March 31, 2026, resulting in diluted EPS of $5.68.
- The company generated $525.1 million in cash from operating activities for the first six months of fiscal year 2026.
- F5, Inc. repurchased $401.1 million of its common stock during the six months ended March 31, 2026.
- As of March 31, 2026, the company had $1.44 billion in cash, cash equivalents, and restricted cash, indicating a strong liquidity position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, F5, Inc. kept $0.18.
- Revenue$811.7M100.0%
- Cost of revenue−$150.9M18.6%
- Gross profit$660.8M81.4%
- Operating costs−$481.8M59.4%
- Operating income$179.0M22.1%
- Interest, other & tax−$31.3M3.9%
- Net income$147.8M18.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $811.70M$731.12M | +11.0% |
| Cost of Revenue | $150.90M$140.96M | +7.1% |
| Gross Profit | $660.80M$590.16M | +12.0% |
| R&D Expenses | $151.04M$136.56M | +10.6% |
| Operating Expenses | $481.78M$431.27M | +11.7% |
| Operating Income | $179.02M$158.90M | +12.7% |
| Net Income | $147.75M$145.53M | +1.5% |
| EPS (Basic) | $2.61$2.51 | +4.0% |
| EPS (Diluted) | $2.58$2.48 | +4.0% |
| Shares Outstanding (Basic) | 56.71M57.89M | −2.0% |
| Shares Outstanding (Diluted) | 57.30M58.76M | −2.5% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of F5, Inc. for the period?
F5, Inc. demonstrated strong financial performance for the six months ended March 31, 2026. Total net revenues increased by 9.1% year-over-year to $1.63 billion, with product revenues showing significant growth of 16.3%. Gross margins remained robust at 81.5%, and net income grew by 5.1% to $327.8 million, leading to diluted EPS of $5.68.
How is the company managing its capital and liquidity?
The company maintains a strong liquidity position with $1.44 billion in cash, cash equivalents, and restricted cash as of March 31, 2026. It generated $525.1 million in cash from operating activities during the first six months of fiscal year 2026. F5, Inc. is also actively returning capital to shareholders, having repurchased $401.1 million of its common stock during the same period.
What are the key growth drivers for F5, Inc. based on this filing?
The primary growth driver appears to be the product revenue segment, particularly systems revenue, which saw a 31.1% increase for the six-month period. Software revenue also contributed positively with a 2.6% increase. The company is also investing in future growth through increased spending on sales and marketing (up 9.5%) and research and development (up 9.4%).
Are there any significant legal or operational risks highlighted in the filing?
Yes, F5, Inc. is involved in several legal proceedings, including a copyright infringement lawsuit related to NGINX, a securities class action lawsuit, and derivative lawsuits. The company also disclosed a Cyber Incident on October 15, 2025, which may lead to further expenses and potential claims. While management intends to vigorously defend these matters, they represent potential financial and operational risks.
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