Core Viewpoint - F5 Inc is experiencing strong financial performance and growth driven by demand for hybrid multi-cloud solutions and AI investments, despite facing challenges in software revenue [2][3][4]. Financial Performance - In Q1 2026, F5 reported revenue of $822 million, marking a 7% increase from the previous year [2][5]. - Product revenue grew by 11% to $410 million, while services revenue increased by 4% to $412 million [2][5]. - The current stock price is $270.43, reflecting a 1.11% increase, with a trading volume of 2,136,380 shares on NASDAQ [4]. Market Dynamics - F5 is benefiting from strong demand drivers, particularly the adoption of hybrid multi-cloud solutions and increased investment in AI [3][5]. - The EMEA region saw remarkable growth of 24%, driven by regulations and mandates focused on resiliency and digital sovereignty [3]. Challenges - F5 faced an 8% decline in software revenue year over year, but overall performance remains strong due to strategic focus on emerging technologies and market demands [4][5].

Core Insights - F5, Inc. (FFIV) shares rose 9.3% in pre-market trading following better-than-expected first-quarter fiscal 2026 results, with non-GAAP EPS of $4.45, exceeding the Zacks Consensus Estimate by 22.21% and management's guidance of $3.35-$3.85 [1][10] Financial Performance - F5 reported first-quarter revenues of $822 million, surpassing the consensus mark by 8.22% and reflecting a 7% year-over-year increase, also exceeding management's guidance of $730-$780 million [2] - Product revenues, accounting for 49.9% of total revenues, increased 11% year over year to $410 million, driven by a 37% surge in Systems revenues to $218 million [3][4] - Software revenues declined 8% year over year to $192 million, partially offsetting the growth in Systems revenues [5] - Global Services revenues grew 4% year over year to $412 million, contributing to overall revenue growth [5] - Non-GAAP gross profit increased 7.2% year over year to $689 million, with a gross margin of 83.8% [6] Cash Flow and Balance Sheet - F5 ended the quarter with cash and short-term investments of $1.22 billion, down from $1.36 billion in the previous quarter, and generated an operating cash flow of $159 million [7] - The company repurchased shares worth $300 million during the fiscal first quarter [7] Guidance and Outlook - For Q2 fiscal 2026, F5 expects revenues between $770 million and $790 million, with a Zacks Consensus Estimate of $747.2 million, indicating approximately 2.2% year-over-year growth [8] - The projected non-GAAP EPS for Q2 is in the range of $3.34-$3.46, with a consensus estimate of $3.36, suggesting a year-over-year decrease of 1.8% [9] - F5 raised its fiscal 2026 revenue growth guidance to 5-6%, up from the previous 0-4% range, with a consensus estimate of $3.16 billion [11]

Company News - ASML's ADRs rose 5% after reporting orders significantly exceeding investor expectations, driven by increased demand for AI computing workloads [3][5][17] - Seagate's stock increased by 8% following a strong second-quarter earnings report that surpassed expectations, along with a positive outlook [3] - Texas Instruments gained 7% after providing a favorable outlook, indicating improved demand in industrial and data center markets [3] - AT&T's shares rose 3% after reporting fourth-quarter profit and revenue that exceeded analysts' estimates, attributed to strong broadband subscriber growth [3] - C3.ai's stock surged 15% amid reports of merger talks with Automation Anywhere [3] - F5 Inc. jumped 8% after raising its revenue forecast for the fiscal year [3] - New Oriental Education's ADRs rose 6% after beating second-quarter estimates and increasing its annual net revenue forecast [3] - Corning's shares fell 3% after reporting fourth-quarter results and providing a disappointing outlook [3] - Elevance Health dropped 6% after giving an adjusted profit forecast for 2026 that fell short of Wall Street expectations [3] - Qorvo's stock fell 10% after issuing a weaker-than-expected outlook [3] Industry Trends - The tech sector is experiencing a rally, driven by strong earnings from semiconductor and memory companies, which is boosting the AI trade [1][4][6] - The Magnificent Seven stocks are mostly higher, with Nvidia, Alphabet, and Amazon showing gains, while Meta and Apple experienced slight declines [3] - The semiconductor, memory, and storage sectors are seeing significant gains due to positive earnings reports, particularly from ASML, Seagate, and Texas Instruments [3][4] - Asian equities are also benefiting from the tech rally, with notable gains in TSMC and SK Hynix [5][13] - The demand for AI memory is driving earnings growth for companies like SK Hynix, indicating a strong market for AI-related technologies [5][14]

分组1 - F5, Inc. reported better-than-expected first-quarter financial results, with earnings of $4.45 per share, surpassing the analyst consensus estimate of $3.65 by 21.88% [1] - The company's quarterly revenue reached $822.47 million, exceeding the Street estimate of $758.08 million [1] - F5 issued second-quarter sales guidance above estimates and raised its FY26 guidance above estimates [1] 分组2 - F5 shares rose 10.9% to $299.99 in pre-market trading following the positive financial results [2]

Software revenue totaled $192 million, down 8% year-over-year, which Werner attributed to a difficult comparison against the prior-year quarter that included an “eight-figure” renewal and unusually strong perpetual software results tied to specific service provider deals. Subscription-based software revenue was $164 million, up 1% year-over-year, while perpetual licensed software revenue was $27 million, down year-over-year.Revenue grew 7% year-over-year to $822 million, with an even split between product r ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 7% to $822 million, with product revenue at $410 million (up 11% year-over-year) and services revenue at $412 million (up 4% year-over-year) [20][21] - Systems revenue reached $218 million, a significant increase of 37% compared to Q1 FY25, driven by hybrid multi-cloud adoption and AI demand [21] - GAAP net income for the quarter was $180 million, or $3.10 per share, while non-GAAP net income was $259 million, or $4.45 per share, reflecting a 16% EPS growth from the previous year [23] Business Line Data and Key Metrics Changes - Product revenue growth was primarily driven by systems revenue, which saw a 37% increase, while software revenue decreased by 8% year-over-year [21] - Subscription-based software revenue grew by 1% year-over-year, totaling $164 million, while perpetual licensed software revenue decreased to $27 million [21] Market Data and Key Metrics Changes - Revenue from the Americas grew by 2% year-over-year, representing 53% of total revenue, while EMEA experienced exceptional growth of 24%, accounting for 31% of revenue [22] - APAC region revenue declined by 1%, representing 16% of total revenue [22] Company Strategy and Development Direction - The company is focused on three key areas: investing in security operations, enhancing product security, and supporting the broader security community [7] - The strategic emphasis is on hybrid multi-cloud adoption, enterprise AI, and converged platforms, which are seen as critical drivers for future growth [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of demand driven by hybrid multi-cloud adoption and AI investments, despite previous uncertainties due to a security incident [5][6] - The company raised its FY 2026 revenue growth outlook to 5%-6%, up from a prior range of 0%-4%, indicating strong pipeline creation and close rates [24][25] Other Important Information - The company generated $159 million in cash flow from operations in Q1, with cash and investments totaling approximately $1.22 billion at quarter end [23] - Deferred revenue increased to $2.1 billion, up 6% from the previous year [24] Q&A Session Summary Question: AI adoption trends among enterprise customers - Management noted that enterprises are shifting from training AI models to deploying them in production, which requires enhanced data pipelines and security measures [32][34] Question: Software and hardware performance outlook - Management acknowledged a tough year-over-year comparison for software but expressed confidence in mid-single-digit growth for the software business moving forward [44][45] Question: Impact of security incident on customer relationships - Management confirmed no evidence of customer breaches due to the security incident and highlighted a successful response that minimized disruption [65][66] Question: Revenue contribution from AI projects - Management indicated that AI-related revenue is growing but has not been broken out specifically, with current contributions in the double-digit million range per quarter [76][77]

Financial Data and Key Metrics Changes - The company reported a 7% revenue growth in Q1 FY 2026, reaching $822 million, with product revenue growing by 11% and services revenue increasing by 4% year-over-year [5][20]. - Systems revenue totaled $218 million, up 37% year-over-year, driven by strong demand related to hybrid multi-cloud adoption and AI [21]. - GAAP net income for the quarter was $180 million, or $3.10 per share, while non-GAAP net income was $259 million, or $4.45 per share, reflecting a 16% EPS growth from the previous year [23]. Business Line Data and Key Metrics Changes - Product revenue accounted for 50% of total revenue, with services revenue also making up 50% [20]. - Software revenue was $192 million, down 8% year-over-year, while subscription-based software revenue totaled $164 million, up 1% year-over-year [21]. - Recurring revenue contributed 69% of total revenue, consisting of subscription-based revenue and maintenance services [21]. Market Data and Key Metrics Changes - Revenue from the Americas grew 2% year-over-year, representing 53% of total revenue, while EMEA delivered exceptional 24% growth, accounting for 31% of revenue [22]. - APAC revenue declined by 1%, representing 16% of total revenue [22]. - Enterprise customers represented 64% of Q1's product bookings, with government customers at 23% and service providers at 13% [22]. Company Strategy and Development Direction - The company is focused on three key areas: investing in security operations, enhancing product security, and supporting the broader security community [7]. - The strategy emphasizes hybrid multi-cloud adoption, enterprise AI, and converged platforms as primary growth drivers [8][29]. - The company aims to lead in hybrid multi-cloud solutions, providing complete delivery and security for applications across various environments [9]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of demand driven by hybrid multi-cloud adoption, AI investments, and regulatory requirements for resilience and digital sovereignty [5][29]. - The company raised its FY 2026 revenue growth outlook to 5%-6%, up from the previous 0%-4% forecast, indicating strong pipeline creation and close rates [24]. - Management noted minimal demand disruption from a recent security incident, highlighting effective customer support and engagement [6][67]. Other Important Information - The company repurchased $300 million worth of shares in Q1, with plans to continue share repurchases at least 50% of free cash flow for the year [24][26]. - Cash and investments totaled approximately $1.22 billion at the end of the quarter, with deferred revenue at $2.1 billion, up 6% year-over-year [23][24]. Q&A Session Summary Question: AI Adoption Trends - Management noted that enterprises are early in the AI adoption cycle, shifting from training to production, which requires enhanced data pipelines and security [31][34]. - The company saw a significant increase in AI-related customer acquisitions, with nearly as many new AI customers in Q1 as in all of FY 2025 [35]. Question: Software and Hardware Performance - Management acknowledged a tough year-over-year comparison for software revenue but expressed confidence in mid-single-digit growth for the remainder of the year [42][45]. - On hardware, management highlighted strong demand driven by hybrid multi-cloud architectures and regulatory requirements for resilience [46][48]. Question: Supply Chain and Memory Costs - Management discussed proactive measures taken to manage supply chain risks and rising memory costs, ensuring adequate supply and monitoring price increases closely [59][60]. Question: Security Incident Impact - Management confirmed no evidence of customer breaches due to the security incident and reported minimal disruption in demand, with a successful response to customer needs [66][67]. Question: AI Revenue Contribution - Management refrained from breaking out specific AI revenues but indicated a healthy increase in AI-related revenue, projecting significant growth potential in the future [76][78].

Financial Data and Key Metrics Changes - The company reported a 7% revenue growth in Q1 FY 2026, totaling $822 million, with product revenue growing by 11% and services revenue growing by 4% year-over-year [19][20] - Systems revenue reached $218 million, up 37% year-over-year, driven by strong demand related to hybrid multi-cloud adoption and AI [20] - GAAP net income for the quarter was $180 million, or $3.10 per share, while non-GAAP net income was $259 million, or $4.45 per share, reflecting a 16% EPS growth from the previous year [22] Business Line Data and Key Metrics Changes - Product revenue accounted for 50% of total revenue, with systems revenue showing significant growth at 37% [19][20] - Software revenue was $192 million, down 8% year-over-year, attributed to a strong comparison from the previous year [20] - Subscription-based software revenue totaled $164 million, up 1% year-over-year, while perpetual licensed software revenue was $27 million, down year-over-year [20] Market Data and Key Metrics Changes - Revenue from the Americas grew 2% year-over-year, representing 53% of total revenue, while EMEA delivered exceptional growth of 24%, accounting for 31% of revenue [21] - APAC region saw a decline of 1%, representing 16% of total revenue [21] - Enterprise customers represented 64% of Q1's product bookings, with government customers at 23% and service providers at 13% [21] Company Strategy and Development Direction - The company is focused on three key areas: investing in security operations, enhancing product security, and supporting the broader security community [5] - The strategy emphasizes hybrid multi-cloud adoption, enterprise AI, and the need for converged platforms, which are seen as significant growth drivers [6][18] - The company aims to lead in hybrid multi-cloud solutions, leveraging its capabilities to provide complete delivery and security for applications [8][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of demand driven by hybrid multi-cloud adoption and AI investments, despite uncertainties from a recent security incident [4][18] - The outlook for FY 2026 has been raised, expecting revenue growth of 5%-6%, up from a prior outlook of 0%-4% [23] - Management highlighted the importance of regulatory drivers and the acceleration of AI as catalysts for future growth [46][47] Other Important Information - The company generated $159 million in cash flow from operations in Q1, with cash and investments totaling approximately $1.22 billion at quarter end [22][23] - Deferred revenue increased to $2.1 billion, up 6% from the previous year [23] - The company repurchased $300 million worth of shares in Q1, with plans to continue share repurchases at least 50% of free cash flow for the year [23] Q&A Session Summary Question: AI adoption trends among enterprise customers - Management noted that the company is early in the AI adoption cycle, with a significant shift from training to production of AI applications, leading to increased demand for infrastructure [30][31] Question: Software and hardware performance outlook - Management acknowledged tough year-over-year comparisons for software but expressed confidence in mid-single-digit growth for the software business moving forward [41][42] Question: Impact of security incident on customer relationships - Management confirmed no evidence of customer breaches due to the security incident and reported minimal disruption in demand, with a successful response to customer needs [63][64]

Shares of F5 were up more than 13% in after-hours trading after the Seattle-based security giant beat fiscal first quarter ...

Core Viewpoint - F5, Inc. reported strong first quarter earnings, surpassing analyst expectations for both earnings per share and revenue, leading to a significant increase in stock price. Financial Performance - Quarterly earnings were $4.45 per share, exceeding the analyst consensus estimate of $3.65 by 21.88% [2] - Quarterly revenue reached $822.47 million, surpassing the Street estimate of $758.08 million [2] - Revenue growth of 7% year over year was driven by an 11% increase in product revenue, with systems revenue growing by 37% [3] Revenue Breakdown - Systems revenue was $218 million, reflecting a 37% increase from the previous year [4] - Software revenue was $192 million, down 8% compared to strong results from the previous year [4] - Global services revenue amounted to $412 million, growing 4% year over year [4] Future Outlook - F5 raised its fiscal 2026 adjusted EPS guidance to between $15.65 and $16.05, compared to the previous estimate of $15.11 [4] - The fiscal revenue outlook was also raised to between $3.24 billion and $3.27 billion, exceeding the prior estimate of $3.15 billion [4] Market Reaction - Following the earnings report, F5 stock rose by 13.76% to $307.65 in extended trading [4]