F5(US:FFIV)2026-01-27 21:12Financial Performance - F5 reported first quarter fiscal year 2026 revenue of $822 million, reflecting a 7% year-over-year growth from $766 million in the same period last year[3]. - Product revenue grew by 11%, with systems revenue increasing by 37% to $218 million, while software revenue decreased by 8% to $192 million[2][3]. - GAAP gross profit for the first quarter was $671 million, resulting in a gross margin of 81.5%, compared to $626 million and 81.7% in the prior year[4]. - Non-GAAP gross profit was $689 million, with a gross margin of 83.8%, slightly down from $643 million and 83.9% year-over-year[4]. - GAAP net income for the quarter was $180 million, or $3.10 per diluted share, up from $166 million, or $2.82 per diluted share, in the previous year[6]. - Non-GAAP net income was $259 million, or $4.45 per diluted share, compared to $227 million, or $3.84 per diluted share, in the first quarter of fiscal year 2025[6]. - Total net revenues for the three months ended December 31, 2025, were $822,465,000, representing a 7.3% increase from $766,489,000 in the same period of 2024[31]. - Gross profit for the same period was $670,680,000, with a gross margin of 81.5%, slightly down from 81.7% in 2024[35]. - Net income for the three months ended December 31, 2025, was $180,054,000, an increase of 8.2% compared to $166,445,000 in 2024[31]. - Diluted net income per share increased to $3.10, up from $2.82 in the prior year, reflecting a 9.9% growth[31]. - Non-GAAP net income for the three months ended December 31, 2025, was $258,763,000, compared to $226,972,000 in 2024, indicating a growth of 14.0%[35]. Outlook and Guidance - F5 raised its fiscal year 2026 revenue growth outlook to 5% to 6%, up from a previous range of 0% to 4%[9]. - The company expects non-GAAP operating margin to be in the range of 34% to 35%, an increase from the prior guidance of 33.5% to 34.5%[9]. - For the second quarter of fiscal year 2026, F5 is guiding revenue between $770 million and $790 million, with non-GAAP earnings projected at $3.34 to $3.46 per diluted share[10]. Market Drivers - F5's strong performance is attributed to market demand drivers such as the shift to hybrid multicloud architectures and enterprise adoption of AI[2][14]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the period were $1,201,870,000, down from $1,346,368,000 at the beginning of the period[33]. - Total current assets were $2,515,419,000, slightly down from $2,518,701,000 in the previous quarter[29]. - Total liabilities increased to $2,753,418,000 from $2,727,493,000 in the previous quarter[29]. - Operating expenses for the three months ended December 31, 2025, were $456,493,000, compared to $420,897,000 in the same period of 2024, marking an increase of 8.4%[31]. - The company reported a deferred revenue of $1,253,071,000, an increase from $1,213,226,000 in the previous quarter[29].