Core Insights - Major Chinese tech companies such as Alibaba, ByteDance, Tencent, and Meituan are intensifying their efforts in AI agents, accelerating the commercialization of generative AI applications [2][4] - Alibaba's Tongyi Lab launched AgentScope 1.0, a new framework aimed at simplifying the development, operation, and management of AI agents [2] - Tencent's Youtu-Agent framework has been open-sourced, while ByteDance's Agent platform "Kouzi Space" is now available on major app stores [2] - Meituan released the LongCat-Flash-Chat model with 560 billion parameters, demonstrating superior performance in AI applications [2][4] Investment and Financial Performance - The combined capital expenditure of major Chinese tech firms (BAT) exceeded 615 billion yuan in Q2, marking a 168% increase year-on-year [5] - Alibaba reported cloud revenue of 33.398 billion yuan, a 26% increase, and a capital expenditure of 38.676 billion yuan, up 220% year-on-year [5] - Tencent's CSIG department reported revenue of 55.536 billion yuan, a 10% increase, with capital expenditure of 19.1 billion yuan, up 119% [5] - Baidu's cloud revenue reached 10 billion yuan, with capital expenditure of 3.8 billion yuan, a 79% increase [5] Market Trends and Projections - The AI agent market in China is expected to exceed $27 billion by 2028, driven by increasing enterprise adoption [12] - A report indicated that 96% of global enterprises are deploying AI models, with 91% planning to use Web Application and API Protection (WAAP) for security [8] - The demand for AI computing power is surging, with Chinese cloud service providers' capital expenditures growing rapidly, reaching approximately $45 billion over the past year [6][7] Technological Advancements - The introduction of AI agents is enhancing the capabilities of AI applications, allowing for dynamic decision-making and tool utilization [8] - F5 has launched an AI gateway product to ensure the security of AI applications across various infrastructures [9] - The development of physical AI, including humanoid robots, is gaining momentum, with NVIDIA's new Jetson AGX Thor providing significant computational power for advanced applications [13][14] Industry Challenges - The integration of AI agents into physical robots presents challenges in data collection and processing, particularly in dynamic environments [14] - Security concerns are paramount as the convergence of digital and physical spaces increases the complexity and risks associated with AI applications [15]

Core Insights - F5 Networks reported strong Q3 earnings, with non-GAAP earnings per share of $4.16, exceeding expectations by 19.2% and up 23.8% year-over-year [2] - Revenues for Q3 reached $780 million, surpassing the consensus estimate by 3.6% and reflecting a 12.2% year-over-year increase [3] Financial Performance - Product revenues, accounting for 49.8% of total revenues, increased by 26% year-over-year to $389 million, outperforming estimates of $346.7 million [4] - Systems revenues surged 39% year-over-year to $181 million, representing 46.5% of total product revenues, driven by demand for infrastructure upgrades [5] - Software revenues rose 16% year-over-year to $208 million, exceeding estimates of $202 million [6] - Global Services revenues grew 1% year-over-year to $392 million, slightly below estimates of $399.5 million [6] Profitability Metrics - Non-GAAP gross profit increased 12.3% year-over-year to $649 million, with a gross margin of 83.1%, unchanged from the previous year [7] - Non-GAAP operating profit rose 14.6% year-over-year to $267 million, with an operating margin improvement of 90 basis points to 34.3% [7] Balance Sheet and Cash Flow - F5 ended the quarter with cash and short-term investments of $1.44 billion, up from $1.26 billion in the previous quarter [8] - The company generated operating cash flow of $282 million during the quarter and $742 million in the first nine months of fiscal 2025 [8] - F5 repurchased shares worth $125 million in the fiscal third quarter and $377 million in the first nine months of fiscal 2025 [8] Future Guidance - F5 raised its fiscal 2025 revenue growth forecast to approximately 9%, up from the previous estimate of 6.5-7.5% [9] - Non-GAAP EPS is now projected to grow by 14-15%, compared to the earlier guidance of 8-10% [10] - For Q4 fiscal 2025, F5 expects revenues between $780 million and $800 million, with a non-GAAP EPS range of $3.87-$3.99 [10] Market Sentiment - Recent estimates for F5 have trended upward, indicating positive market sentiment [11] - F5 holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [13]

Company Performance - Axcelis Technologies (ACLS) has returned 16.3% year-to-date, outperforming the average gain of 12.4% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for ACLS' full-year earnings has increased by 31.2% in the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - Axcelis Technologies holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3] Industry Context - Axcelis Technologies is part of the Electronics - Manufacturing Machinery industry, which currently ranks 102 in the Zacks Industry Rank and has seen an average loss of 11.7% year-to-date [6] - In contrast, F5 Networks, another outperforming stock in the Computer and Technology sector, is part of the Internet - Software industry, which has gained 19.5% since the beginning of the year [7] - The Computer and Technology sector as a whole is ranked 4 among 16 different groups in the Zacks Sector Rank [2]

Group 1 - F5 Networks (FFIV.US) has been upgraded from AA to AAA in MSCI ESG ratings [1]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part provides F5, Inc.'s unaudited consolidated financial statements, including balance sheets, income statements, cash flows, and detailed accounting notes [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section details F5, Inc.'s unaudited consolidated financial statements, encompassing balance sheets, income statements, cash flows, and comprehensive accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The company's financial position shows **total assets of $6.11 billion** and **total liabilities of $2.64 billion** as of June 30, 2025 | Metric | June 30, 2025 (in thousands) | September 30, 2024 (in thousands) | | :-------------------------- | :----------------------------- | :-------------------------------- | | Total Assets | $6,113,499 | $5,613,004 | | Total Liabilities | $2,641,815 | $2,483,626 | | Total Shareholders' Equity | $3,471,684 | $3,129,378 | | Cash and cash equivalents | $1,426,957 | $1,074,602 | | Deferred revenue (total) | $1,956,962 | $1,797,959 | [Consolidated Income Statements](index=5&type=section&id=Consolidated%20Income%20Statements) This section reports the company's financial performance over specific periods, including revenues, expenses, and net income | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net Revenues | $780,370 | $695,495 | $2,277,982 | $2,069,446 | | Net Income | $189,912 | $144,079 | $501,887 | $401,482 | | Net income per share — basic | $3.29 | $2.46 | $8.65 | $6.82 | | Net income per share — diluted | $3.25 | $2.44 | $8.54 | $6.75 | - Net Revenues increased **12.2%** for the three months ended June 30, 2025, and **10.1%** for the nine months ended June 30, 2025, compared to the prior year[11](index=11&type=chunk) - Net Income increased **31.8%** for the three months ended June 30, 2025, and **25.0%** for the nine months ended June 30, 2025, compared to the prior year[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income items | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $189,912 | $144,079 | $501,887 | $401,482 | | Foreign currency translation adjustment | $3,752 | $(1,232) | $2,354 | $886 | | Comprehensive income | $193,664 | $142,856 | $504,241 | $402,446 | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) This section details changes in the company's shareholders' equity over specific periods, including net income and stock repurchases | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Total Shareholders' Equity | $3,471,684 | $3,010,745 | | Repurchase of common stock (3 months) | $(125,105) | $(150,608) | | Repurchase of common stock (9 months) | $(375,595) | $(402,198) | | Net income (3 months) | $189,912 | $144,079 | | Net income (9 months) | $501,887 | $401,482 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section reports the company's cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $741,598 | $545,914 | | Net cash used in investing activities | $(55,689) | $(53,471) | | Net cash used in financing activities | $(337,660) | $(355,131) | | Net increase in cash, cash equivalents and restricted cash | $348,249 | $137,312 | | Cash, cash equivalents and restricted cash, end of period | $1,429,031 | $938,523 | - Net cash provided by operating activities increased by **35.8%** for the nine months ended June 30, 2025, compared to the prior year[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [1. Summary of Significant Accounting Policies](index=10&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the key accounting principles and methods used in preparing the financial statements - F5, Inc. is a global leader in application delivery and security solutions, offering cloud, software, and hardware solutions for hybrid, multicloud environments[26](index=26&type=chunk) - Accounting policies for investments and fair value of financial instruments have been updated to include equity investments with no readily determinable fair value[28](index=28&type=chunk) - The Company is evaluating the impact of new accounting pronouncements: ASU 2023-07 (Segment Reporting), ASU 2023-09 (Income Tax Disclosures), and ASU 2024-03/2025-01 (Expense Disaggregation Disclosures)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [2. Revenue from Contracts with Customers](index=11&type=section&id=2.%20Revenue%20from%20Contracts%20with%20Customers) This section details the company's policies and disclosures related to revenue recognition from customer contracts | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Capitalized Contract Acquisition Costs (end of period) | $72,292 | $61,316 | | Deferred Revenue (end of period) | $1,956,962 | $1,772,584 | - Total non-cancelable remaining performance obligations were **$2.0 billion** as of June 30, 2025, with **61.4%** expected to be recognized as revenue over the next 12 months[38](index=38&type=chunk) [3. Fair Value Measurements](index=12&type=section&id=3.%20Fair%20Value%20Measurements) This section provides information on the fair value of financial instruments and the methodologies used for their measurement | Investment Type (in thousands) | June 30, 2025 Fair Value | September 30, 2024 Fair Value | | :----------------------------- | :----------------------- | :---------------------------- | | Money Market Funds (Level 1) | $760,409 | $437,273 | | Equity investments | $15,034 | $8,580 | | Total investments | $775,443 | $445,853 | - Interest income from cash, cash equivalents, and investments for the nine months ended June 30, 2025, was **$29.7 million**, up from **$25.0 million** in the prior year[50](index=50&type=chunk) [4. Business Combinations](index=14&type=section&id=4.%20Business%20Combinations) This section discloses details of business acquisitions completed by the company, including goodwill recognized - Completed two acquisitions in fiscal 2025, recording **$12.0 million** in goodwill, with an immaterial impact on operating results[54](index=54&type=chunk) - Completed two acquisitions in fiscal 2024, recording **$23.6 million** in goodwill, with an immaterial impact on operating results[55](index=55&type=chunk) [5. Balance Sheet Details](index=14&type=section&id=5.%20Balance%20Sheet%20Details) This section provides further disaggregation and details of specific accounts within the consolidated balance sheets | Account (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------------- | :------------ | :----------------- | | Cash, Cash Equivalents and Restricted Cash | $1,429,031 | $1,078,340 | | Inventories | $66,920 | $76,378 | | Other Current Assets | $631,302 | $569,467 | | Accrued Liabilities | $281,413 | $300,076 | [6. Debt Facilities](index=15&type=section&id=6.%20Debt%20Facilities) This section describes the company's debt arrangements, including credit facilities and their status - The **$350.0 million** Revolving Credit Facility expired on January 31, 2025, with no outstanding borrowings at expiration[63](index=63&type=chunk) [7. Leases](index=16&type=section&id=7.%20Leases) This section provides details on the company's lease arrangements, including liabilities, terms, and expenses | Metric (in thousands) | June 30, 2025 | September 30, 2024 | | :-------------------- | :------------ | :----------------- | | Total Operating Lease Liabilities | $259,818 | $249,564 | | Weighted average remaining lease term | 7.8 years | 7.9 years | - Total lease expense for the nine months ended June 30, 2025, was **$49.6 million**, compared to **$50.2 million** in the prior year[65](index=65&type=chunk) - The Company expects to receive **$8.2 million** in sublease income, with **$0.7 million** in the remainder of fiscal 2025 and **$7.5 million** thereafter[67](index=67&type=chunk) [8. Commitments and Contingencies](index=17&type=section&id=8.%20Commitments%20and%20Contingencies) This section discloses the company's contractual commitments, warranties, and potential legal or regulatory contingencies - The Company has a one-year warranty for systems products, with additional coverage available through service maintenance agreements[70](index=70&type=chunk) - Total non-cancelable long-term purchase commitments outstanding as of June 30, 2025, were **$10.0 million**[71](index=71&type=chunk) - The Lynwood Investment CY Limited v. F5 Networks et al. lawsuit, concerning NGINX software intellectual property, was partially remanded to the District Court for further proceedings on a copyright claim[75](index=75&type=chunk)[76](index=76&type=chunk) [9. Income Taxes](index=18&type=section&id=9.%20Income%20Taxes) This section provides details on the company's income tax expense, effective tax rates, and unrecognized tax benefits | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Effective Tax Rate | 10.8% | 16.0% | 15.4% | 18.4% | - The decrease in the effective tax rate is primarily due to changes in unrecognized tax benefits and the tax impact of stock-based compensation[80](index=80&type=chunk) - Unrecognized tax benefits totaled **$84.8 million** at June 30, 2025, with no material changes expected within the next twelve months[81](index=81&type=chunk) [10. Shareholders' Equity](index=18&type=section&id=10.%20Shareholders'%20Equity) This section details changes in the company's shareholders' equity, including share repurchase programs and their impact - The Board of Directors authorized an additional **$1.0 billion** for the common stock share repurchase program on October 25, 2024, bringing the total remaining authorization to **$1,047.4 million** as of June 30, 2025[84](index=84&type=chunk)[85](index=85&type=chunk) | Metric (in thousands, except per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Shares repurchased | 488 | 873 | 1,459 | 2,338 | | Amount repurchased | $125,010 | $150,018 | $375,029 | $400,047 | [11. Net Income Per Share](index=19&type=section&id=11.%20Net%20Income%20Per%20Share) This section presents the basic and diluted net income per share calculations for the company | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Basic Net Income Per Share | $3.29 | $2.46 | $8.65 | $6.82 | | Diluted Net Income Per Share | $3.25 | $2.44 | $8.54 | $6.75 | [12. Segment Information](index=19&type=section&id=12.%20Segment%20Information) This section provides financial data by operating segment and geographic region, along with key customer information - The Company operates in **one reportable operating segment**[88](index=88&type=chunk) | Revenue Type (in thousands) | 3 months ended June 30, 2025 | 9 months ended June 30, 2025 | | :-------------------------- | :--------------------------- | :--------------------------- | | Americas | $430,971 | $1,259,070 | | EMEA | $202,073 | $620,431 | | APAC | $147,326 | $398,481 | | Systems revenue | $180,855 | $519,968 | | Software revenue | $207,983 | $574,563 | - Key customers for the three months ended June 30, 2025, included Synnex Corporation (**18.4%** of total net revenue) and Ingram Micro, Inc. (**17.0%** of total net revenue)[90](index=90&type=chunk) [13. Restructuring Charges](index=20&type=section&id=13.%20Restructuring%20Charges) This section details the costs associated with the company's restructuring plans, including workforce reductions - Restructuring plans were initiated in fiscal 2025 and 2024 to align strategic and financial objectives and optimize resources, including workforce reductions[91](index=91&type=chunk) | Metric (in thousands) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------ | :------------------------------ | | Restructuring charges | $11,321 | $8,655 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses F5's financial condition and operational results, analyzing revenue growth, cost structures, liquidity, cash flows, and capital resources, noting macroeconomic impacts [Overview](index=21&type=section&id=Overview) This section provides a high-level introduction to F5's business, market position, and recent financial trends - F5 is a global leader in application delivery and security solutions, offering cloud, software, and hardware solutions for hybrid, multicloud environments[96](index=96&type=chunk) - Revenue is derived from sales of products (BIG-IP software/systems, F5 NGINX software, F5 Distributed Cloud Services) and services (maintenance, training, consulting)[97](index=97&type=chunk) - Customer demand improved in the second half of fiscal 2024 and continued into fiscal 2025, following macroeconomic stabilization[97](index=97&type=chunk) - Deferred revenues increased to **$1.96 billion** as of June 30, 2025, from **$1.80 billion** as of September 30, 2024, primarily due to maintenance renewal contracts and subscription offerings[101](index=101&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, gross profit, operating expenses, and net income | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total Net Revenues | $780,370 | $695,495 | $2,277,982 | $2,069,446 | | Net Product Revenues | $388,838 | $308,489 | $1,094,531 | $914,510 | | Net Service Revenues | $391,532 | $387,006 | $1,183,451 | $1,154,936 | | Gross Profit | $631,742 | $559,070 | $1,847,885 | $1,655,519 | | Operating Expenses | $435,425 | $395,980 | $1,287,589 | $1,187,953 | | Net Income | $189,912 | $144,079 | $501,887 | $401,482 | - Total net revenues increased **12.2%** for the three months and **10.1%** for the nine months ended June 30, 2025, primarily due to increased product revenues (systems and software) and service revenues[103](index=103&type=chunk) - Gross margin for the three months ended June 30, 2025, was **81.0%**, up from **80.4%** in the prior year[108](index=108&type=chunk) - The effective tax rate decreased to **10.8%** for the three months and **15.4%** for the nine months ended June 30, 2025, primarily due to changes in unrecognized tax benefits and stock-based compensation tax impact[115](index=115&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to generate and manage cash, including sources and uses of funds and capital structure - Cash and cash equivalents, short-term investments, and long-term investments increased by **$358.8 million** to **$1.44 billion** as of June 30, 2025, from **$1.08 billion** as of September 30, 2024[118](index=118&type=chunk) - Cash provided by operating activities for the first nine months of fiscal year 2025 was **$741.6 million**, an increase from the prior year, driven by higher cash receipts from customers and increased deferred revenue[118](index=118&type=chunk)[119](index=119&type=chunk) - Cash used for common stock repurchases, including excise taxes, was **$377.1 million** for the nine months ended June 30, 2025[118](index=118&type=chunk) - The **$350.0 million** Revolving Credit Facility expired on January 31, 2025, with no outstanding borrowings[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section assesses the company's exposure to market risks, including interest rate, inflation, and foreign currency, noting no material changes or significant financial impact - An immediate **10%** change in interest rates is not expected to materially affect the fair market value of the investment portfolio or operating results/cash flows[129](index=129&type=chunk) - Inflation has not had a material effect on the business, financial condition, or results of operations to date, but the company is actively monitoring the macroeconomic inflationary environment[130](index=130&type=chunk) - Foreign currency transaction gains or losses have not been significant, as the majority of transactions are in U.S. dollars, but may become significant with international expansion[131](index=131&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting - The company's disclosure controls and procedures were effective as of June 30, 2025[134](index=134&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2025[135](index=135&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part provides additional disclosures not included in the financial statements, covering legal, equity, and other relevant information [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the financial statements for detailed information regarding the company's legal proceedings - Information regarding legal proceedings is provided in Note 8 - Commitments and Contingencies of the Notes to Financial Statements[136](index=136&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) This section states no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to risk factors from those described in the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[137](index=137&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section updates the common stock share repurchase program, detailing a **$1.0 billion** authorization increase and shares repurchased during the quarter - The Board of Directors authorized an additional **$1.0 billion** for the common stock share repurchase program on October 25, 2024[138](index=138&type=chunk) - As of June 30, 2025, **$1,047.4 million** remained authorized for share repurchases[138](index=138&type=chunk) | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | | :----- | :-------------------------------------------- | :--------------------------- | | April 1, 2025 – April 30, 2025 | 487.84 | $256.23 | [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable[141](index=141&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section discloses Rule 10b5-1 and non-Rule 10b5-1 trading arrangements adopted by certain officers and directors during the fiscal quarter - Chad Whalen, EVP, Chief Revenue Officer, adopted a Rule 10b5-1 plan on April 30, 2025, for the sale of **16,265** Company shares[142](index=142&type=chunk) - Lyra Schramm, EVP, Chief People Officer, adopted a Rule 10b5-1 plan on June 9, 2025, for the sale of **15,753** Company shares[143](index=143&type=chunk) - Thomas Fountain, EVP, Chief Operating Officer, adopted a Rule 10b5-1 plan on June 13, 2025, for the sale of **33,951** Company shares[143](index=143&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications and XBRL documents - Exhibits include Certifications Pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2002, and various Inline XBRL Taxonomy Extension Documents[144](index=144&type=chunk) [SIGNATURES](index=31&type=section&id=SIGNATURES) This section contains the official signatures certifying the accuracy and completeness of the financial report - The report was signed on August 6, 2025, by Edward C. Werner, Executive Vice President, Chief Financial Officer of F5, Inc.[147](index=147&type=chunk)[149](index=149&type=chunk)

Core Viewpoint - F5 Networks (FFIV) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for F5 suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Earnings Estimate Revisions for F5 - For the fiscal year ending September 2025, F5 is expected to earn $15.26 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.6% over the past three months [8].

Group 1: F5 (FFIV) - F5 provides products and services to manage Internet traffic worldwide and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for F5's current year earnings increased by 4.9% over the last 60 days [1] - F5's shares gained 20.1% over the last three months compared to the S&P 500's gain of 12%, and the company has a Momentum Score of A [1] Group 2: Indivior (INDV) - Indivior is a specialty pharmaceutical company focused on medications for alcohol addiction, opioid overdose, and related conditions, holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Indivior's current year earnings increased by 26.1% over the last 60 days [2] - Indivior's shares gained 78.4% over the last three months compared to the S&P 500's gain of 12%, with a Momentum Score of A [3] Group 3: nVent Electric (NVT) - nVent Electric provides electrical connection and protection solutions and has a Zacks Rank 1 [4] - The Zacks Consensus Estimate for nVent Electric's current year earnings increased by 6.5% over the last 60 days [4] - nVent Electric's shares gained 48.6% over the last three months compared to the S&P 500's gain of 12%, and the company has a Momentum Score of A [4]

Group 1: Cisco Systems Performance - Cisco Systems is a member of the Computer and Technology group, currently ranked 6 in the Zacks Sector Rank among 605 companies [2] - Cisco has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] - Year-to-date, Cisco has returned approximately 15.7%, outperforming the average gain of 11.8% in the Computer and Technology group [4] Group 2: Industry Comparison - Cisco belongs to the Computer - Networking industry, which has 8 stocks and is ranked 100 in the Zacks Industry Rank, with an average gain of 15.2% this year [6] - Another outperforming stock in the sector is F5 Networks, which has returned 27.7% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5] - The Internet - Software industry, where F5 Networks is categorized, has 173 stocks and has gained 22.2% since the beginning of the year [6] Group 3: Analyst Sentiment - The Zacks Consensus Estimate for Cisco's full-year earnings has increased by 0.7% over the past quarter, indicating improving analyst sentiment [4] - F5 Networks' consensus EPS estimate has risen by 5.6% over the last three months, reflecting positive earnings outlook [5] Group 4: Investment Tracking - Investors interested in Computer and Technology stocks should monitor Cisco Systems and F5 Networks for their continued strong performance [7]

Key Takeaways Product revenues (49.8% of total revenues), which comprise the Software and Systems subdivisions, increased 26% year over year to $389 million. Our model estimates for the Product segment revenues were pegged at $346.7 million. This growth was primarily driven by a robust 39% year-over-year jump in Systems revenues, which totaled $181 million. Systems accounted for approximately 46.5% of total Product revenues, showing continued momentum due to demand for infrastructure upgrades. Our model est ...

Company Performance - F5 Networks reported quarterly earnings of $4.16 per share, exceeding the Zacks Consensus Estimate of $3.49 per share, and up from $3.36 per share a year ago, representing an earnings surprise of +19.20% [1] - The company posted revenues of $780.37 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.63%, compared to year-ago revenues of $695.49 million [2] - F5 has surpassed consensus EPS estimates for four consecutive quarters and has also topped consensus revenue estimates four times over the last four quarters [2] Stock Performance and Outlook - F5 shares have increased by approximately 19% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.84 on revenues of $770.57 million, and for the current fiscal year, it is $14.59 on revenues of $3.02 billion [7] Industry Context - The Internet - Software industry, to which F5 belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact F5's stock performance [5][6]