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1. Company Snapshot

1.a. Company Description

F5, Inc.provides multi-cloud application security and delivery solutions for the security, performance, and availability of network applications, servers, and storage systems.The company's multi-cloud application security and delivery solutions enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud.


It offers application security and delivery products, including BIG-IP appliances and VIPRION chassis and related software modules and software-only Virtual Editions; Local Traffic Manager and DNS Services; Advanced Firewall Manager and Policy Enforcement Manager that leverage the unique performance characteristics of its hardware and software architecture; Application Security Manager and Access Policy Manager; NGINX Plus and NGINX Controller; Shape Defense and Enterprise Defense; Secure Web Gateway, and Silverline DDoS and Application security offerings; and online fraud and abuse prevention solutions.The company also provides a range of professional services, including consulting, training, installation, maintenance, and other technical support services.F5, Inc.


sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, and systems integrators in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.It has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform.The company was formerly known as F5 Networks, Inc.


and changed its name to F5, Inc.in November 2021.F5, Inc.


was incorporated in 1996 and is headquartered in Seattle, Washington.

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1.b. Last Insights on FFIV

F5, Inc.'s recent performance has been influenced by several factors. The company's Q1 earnings release revealed insights into its performance in the quarter ended December 2025. Analysts expect F5 to post earnings of $3.63 per share and revenue of $755.9730 million for the quarter. The company received a consensus rating of "Hold" from brokerages, with two sell, six hold, and five buy recommendations. However, F5 faced scrutiny over alleged long-term undetected hack and nation-state infiltration, with Hagens Berman investigating claims that executives misled the market regarding the security of its core BIG-IP products.

1.c. Company Highlights

2. F5's Q1FY26 Earnings: A Strong Start to the Year

F5 reported a robust Q1FY26 with revenue growth of 7% to $822 million, driven by a mix of 50% product revenue and 50% services revenue. The company's EPS came in at $4.45, beating estimates of $3.64. Gross margin was also a highlight, with non-GAAP gross margin expected to be in the range of 82.5% to 83% in Q2. The strong financial performance was fueled by durable demand drivers, including hybrid multi-cloud adoption, scaling AI investment, and converged platforms.

Publication Date: Feb -19

📋 Highlights
  • 7% Revenue Growth: driven by 11% product revenue and 37% systems revenue growth in Q1 FY2026.
  • Hybrid Multi-Cloud & AI Momentum: with 37% systems growth and double-digit AI-related revenue ($10+ million) in Q1.
  • Strong FY2026 Outlook: raised to 5-6% revenue growth and 34-35% non-GAAP operating margin, up from prior guidance.
  • Hardware Refresh Cycle: accelerated by AI workloads and hybrid cloud, with mid-teens systems revenue growth expected for 2026.
  • Security Incident Mitigated: with <50% customer upgrades to latest software, no material revenue impact, and reinforced trust with CSOs.

Segment Performance

The software segment was a strong contributor, with a mid-single-digit growth rate expected for the remainder of the year, driven by a strong renewal cohort and healthy utilization rates. Cooper Werner mentioned that Q1 was a strong compare from the year-ago period due to a large 8-figure renewal and a strong perpetual software business. The hardware segment is also seeing strong demand, driven by regulation and enterprise adoption of AI, with F5 well-positioned to benefit from the trend towards hybrid multi-cloud deployments.

AI and Hybrid Multi-Cloud Trends

F5 is seeing a durable trend in AI adoption, with enterprises moving AI applications into production and requiring significant performance from their topic management solutions. François Locoh-Donou stated that F5 is early in the cycle but sees a durable trend due to the increasing adoption of AI by large enterprises. The company is also seeing strength in hybrid multi-cloud deployments, driven by enterprise demand for flexibility, cost optimization, and control.

Valuation and Outlook

With a P/E Ratio of 22.68 and an EV/EBITDA of 16.9, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 3.2%, which is lower than the current year's expected growth rate. F5's strong financial performance, driven by its leadership in application delivery and security, positions the company well for future growth. The company's commitment to driving innovation and delivering cutting-edge solutions is expected to continue to drive growth in the coming years.

Key Metrics

F5's ROE (%) is 20.29, indicating a strong return on equity. The company's ROIC (%) is 14.14, indicating a healthy return on invested capital. With a Net Debt / EBITDA of -0.78, F5 has a strong balance sheet and is well-positioned to continue to invest in growth initiatives.

3. NewsRoom

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First Trust Advisors LP Boosts Stake in F5, Inc. $FFIV

Mar -07

Source: defenseworld.net

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Kuehn Law Encourages Investors of F5, Inc. to Contact Law Firm

Mar -05

Source: prnewswire.com

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F5, Inc. (FFIV) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -04

Source: seekingalpha.com

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F5 Teams With WWT to Help Customers Accelerate AI Adoption Without Compromising Security

Mar -03

Source: businesswire.com

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Elo Mutual Pension Insurance Co Takes Position in F5, Inc. $FFIV

Mar -03

Source: defenseworld.net

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Andra AP fonden Purchases 3,800 Shares of F5, Inc. $FFIV

Feb -27

Source: defenseworld.net

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F5 Labs Sets New Standard for AI Security Benchmarking With Model Risk Leaderboards and Threat Intelligence

Feb -26

Source: businesswire.com

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EGHT vs. FFIV: Which Stock Is the Better Value Option?

Feb -25

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.92%)

6. Segments

Services

Expected Growth: 1.8%

F5's 1.8% growth is driven by increasing demand for cloud-based application services, expansion of 5G networks, and rising need for security and analytics solutions. Additionally, the company's focus on software-centric offerings and strategic acquisitions have contributed to its growth.

Systems

Expected Growth: 2.2%

F5's 2.2% growth driven by increasing demand for cloud-based application security, rising adoption of 5G networks, and growing need for digital transformation. Additionally, F5's focus on software-centric solutions and strategic acquisitions have expanded its total addressable market, contributing to its growth momentum.

Software

Expected Growth: 1.9%

F5's software growth is driven by increasing demand for cloud-based application security, digital transformation, and rising adoption of 5G networks. Additionally, the company's focus on subscription-based models, expansion into new markets, and strategic acquisitions contribute to its growth. Furthermore, the growing need for organizations to protect against cyber threats and ensure application availability also fuels F5's software segment growth.

7. Detailed Products

BIG-IP

BIG-IP is a family of application delivery controllers that provide advanced traffic management, security, and acceleration capabilities.

NGINX

NGINX is a popular open-source web server software that provides high-performance, scalable, and secure web serving capabilities.

Shape Security

Shape Security is a comprehensive bot management solution that detects and mitigates automated attacks on web and mobile applications.

Volterra

Volterra is a distributed cloud platform that provides a unified, secure, and scalable infrastructure for modern applications.

F5 DNS

F5 DNS is a scalable and secure DNS solution that provides high availability, traffic management, and security for DNS infrastructure.

F5 SSL Orchestrator

F5 SSL Orchestrator is a centralized SSL/TLS management solution that provides visibility, control, and automation for SSL/TLS certificates.

8. F5, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

F5, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the emergence of new technologies and innovations.

Bargaining Power Of Customers

F5, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

F5, Inc. has a diversified supply chain, which reduces the bargaining power of individual suppliers. The company also has a strong negotiating position due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the application delivery controller market. New entrants would need to invest heavily in research and development, marketing, and sales to compete with established players like F5, Inc.

Intensity Of Rivalry

The application delivery controller market is highly competitive, with several established players competing for market share. F5, Inc. faces intense competition from companies like Citrix Systems, Inc. and A10 Networks, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.91%
Debt Cost 3.95%
Equity Weight 91.09%
Equity Cost 9.63%
WACC 9.13%
Leverage 9.79%

11. Quality Control: F5, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Amdocs

A-Score: 5.8/10

Value: 5.2

Growth: 4.9

Quality: 7.0

Yield: 5.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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F5

A-Score: 5.3/10

Value: 3.3

Growth: 6.6

Quality: 9.0

Yield: 0.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Gen Digital

A-Score: 5.2/10

Value: 3.0

Growth: 4.6

Quality: 6.7

Yield: 4.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Qualys

A-Score: 4.8/10

Value: 1.9

Growth: 7.9

Quality: 9.2

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
GoDaddy

A-Score: 4.5/10

Value: 3.4

Growth: 8.6

Quality: 6.9

Yield: 0.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Varonis Systems

A-Score: 3.4/10

Value: 5.0

Growth: 6.9

Quality: 4.1

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

285.33$

Current Price

285.33$

Potential

-0.00%

Expected Cash-Flows