F5(US:FFIV) ZACKS·2025-10-28 13:46Core Insights - F5, Inc. (FFIV) reported better-than-expected fourth-quarter results for fiscal 2025, with non-GAAP EPS of $4.39, exceeding the Zacks Consensus Estimate by 10.86% and management's guidance of $3.87-$3.99 [1][10] - The company's revenues for the fourth quarter reached $810 million, surpassing the consensus mark by 2.22% and showing an 8% year-over-year increase [2][10] - Despite strong results, shares of F5 fell 6.8% in after-hours trading due to weaker revenue and EPS guidance for the first quarter of fiscal 2026 and concerns over a recent security incident [3][10] Financial Performance - Product revenues, accounting for 51.1% of total revenues, increased 15.6% year over year to $414.1 million, driven by a 42% surge in Systems revenues, which totaled $186 million [4][5] - Software revenues rose slightly by 0.3% year over year to $229 million, while Global Services revenues grew 2% year over year to $396 million [6] - Non-GAAP gross profit increased 10.3% year over year to $683 million, with a gross margin of 84.3%, up 130 basis points from the previous year [7] Cash Flow and Share Repurchase - F5 ended the September quarter with cash and short-term investments of $1.36 billion, down from $1.44 billion in the previous quarter [8] - The company generated an operating cash flow of $208 million for the quarter and $950 million for the full fiscal 2025 [8] - F5 repurchased shares worth $125 million in the fourth quarter and $502 million during the first nine months of fiscal 2025 [8] Guidance - For the first quarter of fiscal 2026, F5 expects revenues between $730 million and $780 million, below the Zacks Consensus Estimate of $789.4 million [9][11] - The projected non-GAAP EPS for the first quarter is in the range of $3.35-$3.85, compared to the Zacks Consensus Estimate of $4.02 [11] - F5 anticipates fiscal 2026 revenues to grow in the mid-single-digit range, with the Zacks Consensus Estimate pegged at $3.19 billion, indicating a year-over-year growth of 3.9% [11]