Exhibit 99.1 Workday Announces Fiscal 2026 Third Quarter Financial Results Fiscal Third Quarter Total Revenues of $2.432 Billion, Up 12.6% Year-Over-Year Subscription Revenues of $2.244 Billion, Up 14.6% Year-Over-Year PLEASANTON, Calif., November 25, 2025 – Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for managing people, money, and agents, today announced results for the fiscal 2026 third quarter ended October 31, 2025. Fiscal 2026 Third Quarter Results Comments on the News "Workday delivered ...

Financial Performance - Third quarter revenue increased by 18% year-over-year to $1.85 billion, with billings reaching $1.855 billion, a 21% increase[1][3] - Total net revenue for the three months ended October 31, 2025, was $1,853 million, a 18% increase from $1,570 million in the same period of 2024[38] - Subscription revenue reached $1,734 million, up 19% from $1,457 million year-over-year[38] - Net income for the nine months ended October 31, 2025, was $808 million, compared to $809 million for the same period in 2024[40] - Operating cash flow for the nine months ended October 31, 2025, was $1,463 million, significantly higher than $915 million in the prior year[40] - The company reported a gross profit of $1,688 million for the three months ended October 31, 2025, representing a gross margin of approximately 91%[38] Guidance and Projections - Autodesk raised its full-year guidance, projecting total revenue between $7.150 billion and $7.165 billion for fiscal 2026[10] - Fourth quarter revenue guidance is set between $1.901 billion and $1.917 billion, with GAAP EPS expected to be between $1.40 and $1.57[10] - For Q4 FY26, the GAAP EPS is projected to be between $1.40 and $1.57, with a non-GAAP EPS forecasted between $2.59 and $2.67[46] - The GAAP operating margin for FY26 is expected to be 23%, while the non-GAAP operating margin is projected at 37.5%[46] - For FY26, the GAAP EPS is estimated to be between $5.16 and $5.33, with a non-GAAP EPS forecasted between $10.18 and $10.25[47] Cash Flow and Assets - Free cash flow for the third quarter was $430 million, representing a 116% increase year-over-year[3] - The company had cash and cash equivalents of $1,989 million at the end of the period, up from $1,599 million at the beginning of the year[39] - Total current assets increased to $3,895 million as of October 31, 2025, compared to $3,482 million at the beginning of the year[39] - Total assets grew to $11,198 million from $10,833 million since January 31, 2025[39] - Net cash provided by operating activities was $439 million, resulting in free cash flow of $430 million[44] Revenue Breakdown - Revenue from the AECO product family grew by 23% year-over-year, totaling $921 million[7] - The Americas region generated $820 million in revenue, a 16% increase, while EMEA saw a 23% increase to $715 million[5] - Remaining performance obligations (RPO) increased by 20% year-over-year to $7.361 billion, with current RPO at $4.830 billion[7] - Unbilled deferred revenue rose by 43% year-over-year, totaling $3.515 billion[7] - Deferred revenue stood at $3,577 million as of October 31, 2025, down from $3,787 million at the beginning of the year[39] Operating Margins - GAAP operating margin improved to 25%, up 3 percentage points year-over-year, while non-GAAP operating margin was 38%, up 1 percentage point[3] - Autodesk's GAAP operating margin for the three months ended October 31, 2025, was 25%, while the non-GAAP operating margin was 38%[44] Research and Development - Research and development expenses for the three months ended October 31, 2025, were $416 million, an increase from $378 million in the same period of 2024[38] Non-GAAP Measures - The company emphasizes the importance of reviewing the reconciliation of non-GAAP financial measures to GAAP measures in its public disclosures[42] - Autodesk's financial results include inherent limitations due to the exclusion of certain items in non-GAAP measures, which may impact reported financial results[42]

Financial Performance - For the fiscal year ending November 1, 2025, the company reported sales to distributors of $6.1 billion, net of expected price protection credits and rights of return, with a liability balance of $785 million primarily related to price protection credits [238]. Interest Rate Sensitivity - The company’s annual interest expense would change by approximately $14.5 million and $15.5 million for each 100-basis point increase in interest rates for the years ending November 1, 2025 and November 2, 2024, respectively [224]. - A hypothetical 100-basis point increase in interest rates would increase the swap payable by approximately $45.9 million [227]. - The company’s cash and marketable securities outstanding as of November 1, 2025 would yield an annual interest income change of approximately $36.5 million for each 100-basis point increase in interest rates [225]. Foreign Currency Exposure - An immediate 10% unfavorable movement in foreign currency exchange rates would result in approximately $89.6 million of losses as of November 1, 2025 [229]. - The fair value of forward exchange contracts as of November 1, 2025 was $(1,267) thousand, with a potential liability of $(45,730) thousand after a 10% unfavorable movement in foreign currency exchange rates [231]. - The company’s largest foreign currency exposure is the Euro, due to the high proportion of local currency denominated expenses in its European operations [229]. Debt and Financial Instruments - The company had $8.2 billion in principal amount of senior unsecured notes outstanding as of November 1, 2025, with a fair value of $7.5 billion [228]. - The company had $1.0 billion notional of fixed for floating interest rate swaps outstanding as of November 1, 2025, with a fair value of $12.6 million [227]. Risk and Uncertainty - The company’s actual results may differ materially from forward-looking statements due to various risks and uncertainties [13]. Audit and Assumptions - The audit procedures included inspecting contractual terms in distributor agreements and testing the underlying data for completeness and accuracy [241]. - The company evaluated significant assumptions used in estimating price protection credits by comparing them to historical trends [241]. - The retrospective review analysis of actual price protection credits claimed by distributors was inspected and tested [241]. - Sensitivity analyses were performed on the company's significant assumptions to assess the impact on price protection credits [241]. - The company considered new information that could significantly change the estimated future price protection credits [241].

Revenue and Income - Revenue for the three months ended October 31, 2025, was $1,229.8 million, representing a 4.4% increase from $1,177.5 million in the same period of 2024[92]. - Net income for the three months ended October 31, 2025, was $612.9 million, compared to $207.1 million for the same period in 2024[92]. - Revenue for the nine months ended October 31, 2025, increased by $140.5 million, or 4.0%, to $3,621.8 million compared to $3,481.3 million in 2024, driven by a 6.3% growth in revenue from Enterprise customers[134]. Customer Segmentation - Revenue from Enterprise customers accounted for 60.3% of total revenue for the three months ended October 31, 2025, up from 59.4% in 2024[99]. - Revenue from Online customers represented 39.7% of total revenue for the three months ended October 31, 2025, down from 40.6% in 2024[100]. - The net dollar expansion rate for Enterprise customers was 98% as of October 31, 2025, consistent with the previous year[99]. - Customers contributing more than $100,000 of trailing 12 months revenue increased to 4,363 as of October 31, 2025, from 3,995 in 2024[111]. Profitability and Expenses - Gross profit for the three months ended October 31, 2025, was $958,065, a 7.2% increase from $893,660 in 2024, with a gross margin of 77.9% compared to 75.9% in 2024[126]. - Research and development expenses decreased by 5.8% to $210,097 for the three months ended October 31, 2025, primarily due to a reduction in stock-based compensation[127]. - Sales and marketing expenses decreased by 5.2% to $342,814 for the three months ended October 31, 2025, mainly due to lower stock-based compensation[129]. - General and administrative expenses decreased significantly by 24.9% to $94,740 for the three months ended October 31, 2025, largely due to prior-year accruals related to an SEC investigation[130]. - Gross profit for the nine months ended October 31, 2025, was $2,798.4 million, reflecting a 6.0% increase from $2,639.0 million in 2024, with a gross margin improvement to 77.3% from 75.8%[135][136]. - Research and development expenses decreased by $13.3 million, or 2.1%, to $621.9 million for the nine months ended October 31, 2025, primarily due to a reduction in stock-based compensation[137]. - Sales and marketing expenses decreased by $39.7 million, or 3.7%, to $1,028.8 million for the nine months ended October 31, 2025, mainly driven by a decrease in stock-based compensation[138][139]. - General and administrative expenses decreased significantly by $73.1 million, or 21.1%, to $273.9 million for the nine months ended October 31, 2025, due to a reversal of prior year accruals and reduced stock-based compensation[140]. Tax and Other Income - Provision for income taxes increased by 147.9% to $181,836 for the three months ended October 31, 2025, due to an increase in income before taxes[133]. - Provision for income taxes increased by $109.7 million, or 49.2%, to $332.6 million for the nine months ended October 31, 2025, primarily due to an increase in income before taxes[143]. - Gains on strategic investments for the three months ended October 31, 2025, were $406,060, a substantial increase from $6,324 in 2024[131]. - Other income, net, decreased by 14.3% to $78,235 for the three months ended October 31, 2025, primarily due to lower interest income from cash and marketable securities[132]. Cash Flow and Investments - Free Cash Flow (FCF) for the nine months ended October 31, 2025, was $1,585,642, an increase of 13.9% from $1,392,516 in 2024[114]. - Net cash provided by operating activities was $1,634.5 million for the nine months ended October 31, 2025, compared to $1,520.7 million in 2024, reflecting higher net income[150]. - Net cash used in investing activities was $330.2 million for the nine months ended October 31, 2025, primarily for marketable securities and property purchases[151]. - The company repurchased 16,624,306 shares of Class A common stock for an aggregate amount of $1,295.8 million during the nine months ended October 31, 2025[157]. Strategic Initiatives - The company continues to invest in AI capabilities, focusing on enhancing productivity and collaboration tools[89]. - New product innovations include AI Companion 3.0, expected to be available in December 2025, which will enhance task management and productivity features[105]. Risk Management - The company has not been exposed to material risks due to changes in interest rates due to the short-term nature of its investments[162]. - A hypothetical 10% change in interest rates would not have had a material impact on the historical condensed consolidated financial statements for the three and nine months ended October 31, 2025 and 2024[162].

Exhibit 99.1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 1 "We have entered into an investment phase to build long-term strategic value in AI technologies ...

Financial Performance - Nutanix reported an 18% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.28 billion in Q1 FY'26 compared to $1.94 billion in Q1 FY'25[3] - Total revenue for Q1 FY'26 was $670.6 million, reflecting a 13% increase from $591.0 million in Q1 FY'25[3] - Free cash flow for the quarter was $174.5 million, up from $151.9 million in the same quarter last year, marking a $22.6 million increase[3] - GAAP operating income increased to $49.3 million in Q1 FY'26, compared to $27.3 million in Q1 FY'25, representing a $22.0 million improvement[3] - Non-GAAP operating margin for Q1 FY'26 was 19.7%, slightly down from 20.0% in Q1 FY'25[3] - Nutanix expects full-year revenue guidance to be between $2.82 billion and $2.86 billion, with a non-GAAP operating margin forecast of 21% to 22%[5] - Net income for Q1 2025 was $62,096 thousand, compared to $29,926 thousand in Q1 2024, reflecting a significant increase of approximately 107.5%[20] - Total operating expenses increased from $481,036 thousand in Q1 2024 to $533,771 thousand in Q1 2025, a rise of approximately 10.9%[20] - Cash provided by operating activities was $161,751 thousand in Q1 2024, compared to $196,825 thousand in Q1 2025, indicating an increase of about 21.6%[21] - Gross profit for the three months ended October 31, 2025, was $583,106, with a gross margin of 87.0%[34] - Total operating expenses decreased to $533,771, resulting in an income from operations of $49,335, with an operating margin of 7.4%[34] - Net income for the period was $62,096, translating to a net income per share of $0.23 (basic) and $0.21 (diluted)[34] - Operating income increased significantly to $131,849, with an operating margin of 19.7% for the adjusted figures[34] - The gross margin improved to 88.0% when considering non-GAAP adjustments, indicating a strong operational performance[34] Cash Flow and Assets - Nutanix's net cash provided by operating activities was $196.8 million, an increase of $35.0 million from $161.8 million in the previous year[3] - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $780,436 thousand, up from $716,994 thousand at the end of Q1 2024, an increase of about 8.8%[21] - The company reported a free cash flow of $151,920 for the three months ended October 31, 2024, compared to $174,506 for the same period in 2025[38] Expenses - Research and development expenses were $187,482, reflecting a decrease of $39,501 compared to the previous period[34] - Sales and marketing expenses totaled $285,233, down by $17,760 from the prior period[34] Partnerships and Recognition - The company announced expansions in partnerships with Dell and Microsoft to enhance its cloud platform capabilities[2] - Nutanix was recognized as a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure[4] Contract and Obligations - Nutanix's average contract duration remained stable at 3.1 years[3] - Remaining performance obligations increased from $2,118,298 thousand in Q1 2024 to $2,670,515 thousand in Q1 2025, reflecting a growth of approximately 26%[32] Liabilities and Assets - Total assets decreased from $3,323,992 thousand to $3,283,194 thousand, a decline of approximately 1.2%[18] - Total liabilities slightly decreased from $3,992,620 thousand to $3,977,714 thousand, a reduction of about 0.4%[18] Share Information - The weighted average shares outstanding for basic and diluted calculations were 269,872 and 296,518, respectively[34] - The company adopted a long-term projected non-GAAP tax rate of 20% for calculating non-GAAP net income and income per share, effective from the third quarter of fiscal 2025[35]

Acquisition and Investments - Cencora acquired an 85% interest in Retina Consultants of America for $4,042.0 million in cash, with additional contingent considerations totaling $1,633.2 million[33] - The company invested $718.4 million for a 34.9% interest in a joint venture to acquire OneOncology in June 2023, and acquired RCA, a management services organization, on January 2, 2025[83] - The acquisition of RCA and investments in other businesses may lead to integration challenges and unanticipated liabilities[84] Revenue and Growth - The U.S. Healthcare Solutions segment accounted for approximately 66% of revenue in fiscal 2025, with Walgreens and Boots contributing about 25% and Evernorth Health Services about 13%[42] - Revenue increased by $27.4 billion, or 9.3%, from the prior fiscal year, driven by growth in both U.S. and International Healthcare Solutions segments[209] - U.S. Healthcare Solutions segment revenue grew by $25.6 billion, or 9.7%, primarily due to increased sales of specialty products and GLP-1 products, which saw a sales increase of $7.7 billion, or 26.9%[210] - International Healthcare Solutions revenue increased by $1.7 billion, or 6.1%, mainly due to a $1.3 billion increase in sales at the European distribution business[211] Operational Efficiency - The company aims to optimize and grow its U.S. Healthcare Solutions businesses by improving operating and capital efficiencies[26] - The company continues to invest in advanced information systems and automated warehouse technology to enhance operational efficiency[47] - U.S. Healthcare Solutions has made significant investments in electronic ordering systems to strengthen customer relationships and reduce operating costs[48] - The company processes a substantial portion of its purchase orders and payments electronically, improving productivity and operating leverage[49] Customer Concentration - The top 10 customers represented approximately 66% of revenue in fiscal 2025, indicating a concentrated customer base[42] - Walgreens and Boots accounted for approximately 25% of the company's revenue in fiscal 2025 and about 38% of accounts receivable as of September 30, 2025[78] - Evernorth Health Services contributed approximately 13% to the company's revenue in fiscal 2025[78] Cybersecurity and Information Security - The company continues to invest in cybersecurity capabilities to enhance its cyber resiliency[45] - The company faces increasing information security risks due to evolving cyber threats, with incidents like ransomware attacks becoming more prevalent and severe[97] - Cybersecurity incidents have previously occurred, with notable incidents disclosed in February 2024 and March 2023, although they did not have a material adverse impact on the company[98] - The company has a Cybersecurity Incident Response Process that outlines actions to be taken in response to cybersecurity incidents, ensuring appropriate escalation to senior management and the Board[163] - The company has invested in cybersecurity training for employees, requiring periodic access-based and role-based training to mitigate risks[164] Regulatory and Legal Risks - The company is subject to various federal, state, and local environmental laws, which could significantly impact its financial position and operations[70] - The company faces significant challenges in achieving anticipated benefits from its agreements with Walgreens and Boots, including potential delays and changes in supplier relationships[80] - Legal and regulatory changes regarding coverage, reimbursement, and pricing could adversely affect the company’s business and results of operations[118] - The company is facing ongoing investigations and lawsuits related to opioid distribution, which could adversely affect its financial position and operations[139] Financial Performance - Gross profit increased by $1,568.5 million, or 15.8%, primarily due to higher gross profit in the U.S. Healthcare Solutions segment and gains from antitrust litigation settlements[214] - U.S. Healthcare Solutions' gross profit rose by $1,482.3 million, or 23.1%, with a gross profit margin of 2.72%, an increase of 30 basis points compared to the prior fiscal year[215] - Total operating expenses increased by $1,115.2 million, or 14.4%, primarily due to the acquisition of RCA and increased acquisition-related expenses[214] Employee and Labor Relations - The company has over 51,000 employees globally, with approximately 47,000 being full-time employees[56] - Approximately 24% of the company's global employees are covered by collective bargaining agreements, mostly outside the U.S.[57] - Approximately 24% of the company's employees are covered by collective bargaining agreements, which could lead to operational disruptions if strikes occur[95] Market and Economic Factors - Pharmaceutical sales in the U.S. are projected to grow at a compound annual growth rate of approximately 8.4% from 2024 through 2029[20] - Generic pharmaceuticals currently represent approximately 90% of the prescription volume in the U.S., providing higher gross profit margin opportunities[22] - Geopolitical risks, including tariffs and inflation, could adversely impact the company's financial position and operational costs[90] Stock and Shareholder Information - The company's common stock is traded on the New York Stock Exchange under the symbol "COR," with 2,166 record holders as of October 31, 2025[188] - The company approved quarterly dividend increases, with the latest increase in November 2025 to $0.600 per share, representing a 9% increase from the previous rate[188] - The company authorized a share repurchase program of up to $2.0 billion, with $882.2 million available as of September 30, 2025, after purchasing 1.9 million shares for $435.4 million during fiscal 2025[192]

Revenue and Sales Performance - The Aerospace segment generated revenues from sales to OEMs, tier-one suppliers, and prime contractors, with significant content on platforms like Airbus A320neo and Boeing 737 MAX[19] - Sales to the five largest customers represented approximately 36% of consolidated net sales for the fiscal year ended September 30, 2025, compared to 35% in the previous year[24] - The remaining performance obligations for the Aerospace segment were $2,683,116, expected to be satisfied by October 31, 2025, representing 74% of the total[41] - The Industrial segment's revenues are primarily from sales to OEMs, with a remaining performance obligation of $736,912, expected to be satisfied by October 31, 2025, representing 89%[41] - Sales made directly to U.S. Government agencies represented 20% of total sales for fiscal year 2025, up from 17% in fiscal year 2024[39] - Consolidated net sales for fiscal year 2025 increased by $242,815, or 7.3%, to $3,567,064 compared to fiscal year 2024[188] - Aerospace segment net sales rose to $2,312,806, an increase from $2,028,618 in fiscal year 2024, driven by higher sales volumes and price realization[183] - Industrial segment net sales decreased to $1,254,258 from $1,295,631, primarily due to lower sales volume and unfavorable mix related to reduced demand in China[189] Financial Performance - Consolidated net earnings for fiscal year 2025 were $442,111, a 18.6% increase from $372,971 in fiscal year 2024[183] - Operating profit for the aerospace segment increased to $506,613, representing 21.9% of segment net sales, up from 19.0% in fiscal year 2024[183] - Free cash flow for fiscal year 2025 was $340,366, slightly down from $342,809 in fiscal year 2024, primarily due to higher capital expenditures[185] - Research and development costs increased by 4.9% to $147,568, representing 4.1% of net sales, down from 4.2% in fiscal year 2024[194] - Effective tax rate decreased to 15.2% in fiscal year 2025 from 17.8% in fiscal year 2024, mainly due to a reduction in the German corporate tax rate[197] Market and Industry Trends - The company has a strategic focus on energy control and optimization solutions, addressing the growing requirements for efficiency and emissions reduction in aerospace and industrial markets[13] - The company anticipates continued demand growth in power generation driven by global electrification and data center requirements[179] - The defense industry has seen increased budget allocations, with expectations for continued growth in procurement and research and development funding[174] - The company reported significant growth in smart defense programs during fiscal year 2025, with an expected increase in demand for these weapons programs[174] - The company anticipates steady global air traffic growth in fiscal year 2026, leading to increased demand for new generation aircraft models[171] Operational and Strategic Initiatives - The company operates manufacturing and assembly plants primarily in the U.S., Europe, and Asia, utilizing raw materials like aluminum, iron, and steel[42] - The company collaborates closely with customers during preliminary design stages to enhance product performance and increase the likelihood of selection for new platforms[47] - The company has developed key components for the CFM LEAP engine program and Pratt & Whitney's GTF engine program, continuing support through joint ventures[50] - The company has a strategic joint venture with GE Aerospace, which may impact its ability to secure long-term sales in certain aerospace markets[75] - The company maintains high utilization levels across its manufacturing facilities, indicating efficient operations[147] Risks and Challenges - The company has experienced shortages of certain parts and raw materials due to supply chain challenges, which may affect revenue and margins[77] - The company faces risks from potential changes in U.S. Government spending, which could adversely affect sales and financial condition[80] - The company is subject to unique risks associated with government contracting, including potential contract modifications or terminations[83] - Operations may be disrupted by unforeseen events such as natural disasters, which could lead to significant delays in product shipments and loss of sales[103] - Cybersecurity threats are a significant concern, with ongoing risks of attacks that could compromise sensitive data and disrupt operations[111] Workforce and Employment - As of October 31, 2025, the company employed approximately 10,200 full-time members, with about 30% located outside the United States[56] - Approximately 13% of the total full-time workforce in the U.S. were union members as of October 31, 2025, primarily in the Aerospace segment[57] - The company emphasizes the importance of its members, with an average tenure of 10 years, reflecting a positive workplace culture[51] - The company has not experienced recent work stoppages, but future disruptions could adversely affect operations and financial performance[102] Environmental and Compliance - The company is committed to compliance with environmental regulations, which has not materially impacted its capital expenditures or earnings[64] - The company must comply with U.S. laws restricting business in certain countries, which may affect international operations[94] - The company is subject to environmental costs and liabilities due to manufacturing operations, which could adversely affect financial results[135] - Compliance with evolving data privacy and cybersecurity regulations is critical, as failures could result in substantial costs and damage to reputation[116][117]

Sales Performance - Total retail sales for Q3 2025 were $153.7 million, a 6% increase from $144.6 million in Q3 2024, driven by a 10% increase in same-store sales [72]. - For the nine months ended November 1, 2025, total retail sales reached $496.8 million, a 2% increase from $486.8 million in the same period last year [72]. Cost and Expenses - Cost of goods sold for Q3 2025 was $104.5 million, or 68.0% of retail sales, down from 71.2% in Q3 2024, reflecting lower buying and distribution costs [74]. - Selling, general and administrative expenses were $57.0 million, or 37.1% of retail sales in Q3 2025, compared to $57.9 million, or 40.0% in Q3 2024 [75]. - Gross margin increased by 18.0% to $49.2 million in Q3 2025, compared to $41.7 million in Q3 2024 [74]. Store Operations - The company operated 1,101 stores as of November 1, 2025, down from 1,167 stores at the end of the previous fiscal year's third quarter, with an expectation to close approximately 50 stores in fiscal 2025 [72]. Revenue and Other Income - Other revenue for Q3 2025 was $1.7 million, slightly up from $1.5 million in Q3 2024, with credit revenue remaining flat at $0.7 million [73]. Tax and Income - The effective income tax rate for the first nine months of fiscal 2025 was (11.9%), compared to (67.5%) for the same period in fiscal 2024, primarily due to a reduction in foreign income taxes [78]. Financial Outlook - The company anticipates that product acquisition costs will be negatively impacted by tariffs, particularly on products sourced from China and Southeast Asia [70]. - The company believes its cash and cash equivalents, along with cash flows from operations, will be adequate to fund regular operating requirements for the next 12 months [79]. Cash Flow and Working Capital - Cash provided by operating activities increased by $16.5 million to $3.2 million in the first nine months of fiscal 2025, compared to a net loss in the prior year [80]. - Working capital rose to $58.3 million as of November 1, 2025, up from $34.9 million at February 1, 2025, primarily due to increased cash and cash equivalents [81]. Credit Facilities and Capital Expenditures - The Company established an asset-based revolving credit facility of up to $35.0 million, with $30.0 million available as of November 1, 2025 [82][83]. - Capital expenditures for the first nine months of fiscal 2025 totaled $2.9 million, down from $6.5 million in the same period last year, with an expected total of approximately $5.9 million for the full fiscal year [84][85]. Investment Activities - Net cash used in investing activities was negligible in the first nine months of fiscal 2025, compared to $21.5 million net cash provided in the same period of 2024 [86]. Financing Activities - Net cash used in financing activities decreased to $0.9 million in the first nine months of fiscal 2025, down from $12.6 million in the comparable period of fiscal 2024, primarily due to the elimination of dividend payments [87]. Deferred Compensation and Risk Management - Deferred compensation plan assets increased to $9.8 million as of November 1, 2025, up from $9.3 million at February 1, 2025 [89]. - The Company does not use derivative financial instruments and maintains an investment portfolio primarily in corporate bonds and taxable governmental debt securities [88]. - The ABL Credit Agreement is committed through May 2027 and is secured primarily by inventory and third-party credit card receivables [83]. - The Company does not believe its exposure to market rate risk from interest rate changes is material [91].

Security Incidents - On October 15, 2025, a security incident was disclosed where a threat actor maintained long-term access to F5 systems and exfiltrated certain files[24]. Product and Service Offerings - F5's strategy focuses on solving multicloud application delivery and security challenges through its product families, including F5 BIG-IP, F5 NGINX, and F5 Distributed Cloud Services[25]. - The F5 Application Delivery and Security Platform (ADSP) was introduced in 2025 to unify traffic management with advanced application and API security across hybrid and multicloud environments[29]. - F5 is investing in expanding its SaaS-based F5 Distributed Cloud Services, which simplifies management for F5 BIG-IP and F5 NGINX customers[30]. - F5's portfolio includes solutions for web application and API protection, hybrid multicloud networking, enterprise AI delivery and security, and zero trust architecture readiness[31]. - F5 Distributed Cloud Services leverage a global private backbone to deliver performance and reliability across hybrid, multicloud, or edge environments[32]. - F5 NGINX technology suite supports hundreds of millions of websites and applications, providing a lightweight, agile ADC and API connectivity solution[33]. - The F5 BIG-IP Automation Tool Chain integrates with orchestration frameworks, enhancing deployment and configuration speed for application services[45]. Competitive Landscape - F5's competitive landscape includes vendors like Citrix, AWS, and Cloudflare, focusing on application delivery, security, and multicloud networking[38][42]. - The company emphasizes a platform approach to simplify complexity and enhance operational efficiency while competing on a point-solution basis[41]. AI Strategy - F5's AI strategy enhances application delivery and security solutions, addressing performance challenges associated with AI workloads and pursuing partnerships with global AI leaders[28]. - The company completed the acquisition of CalypsoAI Corp. in September 2025, aimed at enhancing its F5 ADSP for AI inference security[48]. - Kunal Anand has been appointed as Executive Vice President and Chief Product Officer since October 2025, focusing on AI innovation across F5's product solutions[71]. Employee Engagement and Corporate Culture - As of September 30, 2025, the company employed 6,578 individuals, with 47% based in the United States, and over 99% of employees being full-time[51]. - In fiscal year 2025, 72% of employees participated in the Global Good programs, contributing over 13,400 volunteer hours and directing $3.9 million in donations to over 3,900 non-profits[64]. - The company’s employee engagement survey indicated that 80% of employees feel a sense of belonging at F5, up from 73% the previous year[54]. Leadership Team - The company’s executive team includes François Locoh-Donou as CEO, Edward Werner as CFO, and Tom Fountain as COO, among others[66]. - John Maddison, serving as Chief Marketing Officer since October 2025, is responsible for enhancing F5's market impact and brand promise through products and partnerships[72]. - Angelique Okeke has been the Executive Vice President and General Counsel since March 2025, bringing over 20 years of legal experience, including strategic counsel at Nike[73]. - Michael Montoya, appointed as Executive Vice President and Chief Technology Operations Officer in October 2025, previously served as Chief Operating Officer at BlueVoyant[74]. Financial Outlook and Economic Factors - The company does not expect a 10% change in interest rates to materially affect its operating results or cash flows due to its current investment portfolio[241]. - Inflation has not had a material effect on the company's financial condition, but significant inflationary pressures could impact costs and customer procurement decisions[242]. - The majority of sales and expenses are in U.S. dollars, and foreign currency fluctuations have not significantly impacted financial results to date[243]. Environmental Sustainability - The company reported a 16% year-over-year reduction in Scope 1 and 2 emissions and a 10% reduction in Scope 3 emissions from fiscal year 2023 to fiscal year 2024[63]. - The company aims to reduce absolute Scope 1 and 2 emissions by 50% and Scope 3 emissions by 43% from a 2021 baseline by 2030[60]. - The company has established a robust global hardware supply chain and continuously monitors potential risks to minimize disruptions[46].