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]

F5 (NasdaqGS:FFIV) Q1 2026 Earnings call January 27, 2026 04:30 PM ET Company ParticipantsCooper Werner - EVP and CFOFrançois Locoh-Donou - President and CEOGeorge Notter - Managing DirectorMatt Hedberg - Managing DirectorMichael Ng - Managing DirectorSimon Leopold - Managing DirectorSuzanne DuLong - VP of Investor RelationsTim Long - Managing DirectorTomer Zilberman - TMT Equity Research AssociateConference Call ParticipantsJames Fish - Senior Research AnalystMeta Marshall - Managing Director and Equity Re ...

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]

Q1FY26 Results PERIOD ENDING December 31, 2025 F5 specializes in application delivery and security. Our solutions are backed by three decades of expertise to ensure that every app is fast, available, secure, and ready for the AI-era. Forward-looking statements This presentation contains forward-looking statements including, among other things, F5's strong performance underscores its alignment with durable market demand drivers including the shift to hybrid multicloud architectures, enterprise adoption of AI ...

Core Insights - The big data industry focuses on companies that process, store, and analyze vast amounts of structured, unstructured, and semi-structured data, providing tools for data mining, transformation, visualization, and predictive analytics [1][3]. Company Summaries Fair Isaac Corp. (FICO) - Fair Isaac is experiencing strong financial performance, driven by growth in its Scores and Software segments, with an expected revenue growth rate of 21.1% and earnings growth rate of 34.6% for the current year [7][9]. - The company has expanded its scoring models to include 'Buy Now, Pay Later' loan data, enhancing predictive accuracy [7]. - FICO's Lenders Leading Inclusion Program supports better decision-making for lenders [8]. Teradata Corp. (TDC) - Teradata's prospects are bolstered by an improvement in ARR growth rate and productivity measures, with an expected revenue growth rate of -0.6% and earnings growth rate of 3.6% for the current year [11][14]. - The company is well-positioned to support Agentic AI workloads, managing critical enterprise data and delivering necessary performance [11]. - Recent acquisitions, such as Stemma, enhance Teradata's data search capabilities and analytics offerings [13]. F5 Inc. (FFIV) - F5 is benefiting from strong software growth, particularly in public cloud and security offerings, with an expected revenue growth rate of 1.8% and earnings growth rate of -5.2% for the current year [15][18]. - The company has made six acquisitions over the past five years to enhance its network security capabilities [16]. - F5's strong presence in Layer 4-7 content switching positions it well in the application networking market [17]. S&P Global Inc. (SPGI) - S&P Global is positioned to benefit from the growing demand for business information services, with an expected revenue growth rate of 7.2% and earnings growth rate of 11.6% for the current year [19][21]. - Recent acquisitions, including ProntoNLP, ORBCOMM, and TeraHelix, enhance its capabilities in textual data analytics and supply chain insights [19][20]. - The company's service launches are aiding growth and expanding market reach [19]. Moody's Corp. (MCO) - Moody's is leveraging its dominant position in the credit rating industry and strategic acquisitions to support top-line expansion, with an expected revenue growth rate of 7.8% and earnings growth rate of 11.9% for the current year [22][24]. - Recent acquisitions, such as securing majority ownership in Middle East Rating & Investors Service, are diversifying its revenue streams [23]. - A rebound in bond issuance volume is anticipated to drive growth for Moody's [23].

Financial Data and Key Metrics Changes - The company achieved over $3 billion in revenue and $1 billion in operating profit for fiscal year 2025, with revenue growth of 10% and earnings per share growth of 18% [5] - Gross margins improved to 83.6%, up 80 basis points from FY 2024, and operating margins increased to 35.2%, up 160 basis points from FY 2024 [5] - Free cash flow reached a record $906 million, representing a 19% increase compared to FY 2024 [5][13] Business Line Data and Key Metrics Changes - Q4 revenue grew 8% to $810 million, with global services revenue at $396 million (up 2% year-over-year) and product revenue at $414 million (up 16% year-over-year) [10] - Systems revenue increased by 42% year-over-year to $186 million, driven by tech refresh and data center modernization [10] - Software revenue totaled $229 million, showing slight growth against a strong Q4 of FY 2024, with perpetual license software up 25% year-over-year [10][11] Market Data and Key Metrics Changes - Revenue from the Americas grew 7% year-over-year, representing 57% of total revenue, while EMEA and APAC grew 7% and 19%, representing 26% and 17% of revenue, respectively [11] - Enterprise customers accounted for 73% of Q4 product bookings, with government customers at 19% and service providers at 8% [11] Company Strategy and Development Direction - The company is focusing on incident response and enhancing security measures following a recent security incident, with significant investments planned in cybersecurity [6][8] - The strategic emphasis is on hybrid multi-cloud adoption and AI infrastructure demand, positioning the company to address complex customer challenges [21][22] - The company aims to leverage its Application Delivery and Security Platform (ADSP) to unify traffic management and security across hybrid and multi-cloud environments [21] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit revenue growth for FY 2026, with potential near-term disruptions due to the recent security incident [16][17] - The company expects FY 2026 gross margins to be in the range of 83%-83.5% and non-GAAP operating margins between 33.5%-34.5% [18][19] - Management remains optimistic about long-term growth drivers, including hybrid multi-cloud adoption and AI readiness [16][21] Other Important Information - The company has seen a significant increase in customers leveraging its XOps capabilities, growing from 20 to nearly 900 customers [22] - The total security revenue for FY 2025 grew 6% to approximately $1.2 billion, representing 39% of total revenue [15] Q&A Session Summary Question: What form of conservatism has been put into estimates? - Management noted that customer resources are focused on upgrading environments, which may delay new project considerations [38] Question: How to size the potential impact from the security breach? - Management took a granular approach to profile revenue streams, identifying which could be more impacted and which would be resilient [46] Question: What percentage of revenue comes from F5 BIG-IP? - F5 BIG-IP is the highest revenue product, but specific revenue contributions are not disclosed [56] Question: Are there additional costs as a result of the data breach? - There are costs related to incident remediation, which may be covered by cyber insurance or accounted for as one-time expenses [57]

Financial Data and Key Metrics Changes - The company reported exceptional fiscal year 2025 results, exceeding $3 billion in revenue and $1 billion in operating profit, with revenue growth of 10% and earnings per share growth of 18% [5] - Gross margins improved to 83.6%, up 80 basis points from FY24, and operating margins increased to 35.2%, up 160 basis points from FY24 [5] - Free cash flow reached a record $906 million, up 19% compared to FY24, resulting in a free cash flow margin of 29% [13] Business Line Data and Key Metrics Changes - Q4 revenue grew 8% to $810 million, with global services revenue at $396 million (up 2% year over year) and product revenue at $414 million (up 16% year over year) [10] - Systems revenue totaled $186 million, up 42% year over year, driven by tech refresh and data center modernization [10] - Software revenue was $229 million, slightly up against a strong Q4 of FY24, with perpetual license software up 25% year over year [10][11] Market Data and Key Metrics Changes - Revenue from the Americas grew 7% year over year, representing 57% of total revenue, while EMEA and APAC grew 7% and 19%, representing 26% and 17% of revenue, respectively [11] - Enterprise customers accounted for 73% of Q4 product bookings, with government customers at 19% and service providers at 8% [11] Company Strategy and Development Direction - The company is focusing on incident response and enhancing security posture following a recent security incident, with significant investments in security planned for the future [6][8] - The strategic direction emphasizes hybrid multi-cloud adoption and AI infrastructure demand, positioning the company to address complex challenges in application delivery and security [20] - The company aims to leverage its Application Delivery and Security Platform to simplify hybrid multi-cloud complexity and enhance operational efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management anticipates some near-term disruption to sales cycles due to the recent security incident, with guidance for FY26 revenue growth in the range of 0 to 4% [17] - The company expects mid-single-digit revenue growth in FY26, driven by hybrid multi-cloud adoption and a strong systems refresh opportunity [16] - Management remains confident in the long-term growth potential, particularly in software and security revenue, despite short-term challenges [15][17] Other Important Information - The company has made significant investments in cybersecurity, doubling its investment over the last three years, and plans to continue this trend [53] - The total security revenue grew 6% to approximately $1.2 billion, representing 39% of total revenue [15] Q&A Session Summary Question: What form of conservatism have you put into the estimates? - Management noted that customer conservatism may lead to delays in purchasing decisions and additional approvals due to the recent security incident [35][36] Question: How much of fiscal 2025 growth was due to the product upgrade cycle? - Approximately two-thirds of the systems business growth in FY2025 was attributed to tech refresh, with the remainder from data center capacity expansion [38] Question: How do you size the potential impact from the security breach? - Management took a granular approach to profile revenue streams, identifying which would be more impacted and which would be resilient [44][46] Question: What percentage of revenue comes from F5 BIG-IP? - While specific revenue breakdowns are not provided, F5 BIG-IP is the highest revenue product for the company [53] Question: Are there additional costs as a result of the data breach? - There are costs related to incident remediation, which may be covered by cyber insurance or accounted for as one-time expenses [54]

Financial Data and Key Metrics Changes - F5 reported exceptional fiscal year 2025 results, exceeding $3 billion in revenue and $1 billion in operating profit, with revenue growth of 10% and earnings per share growth of 18% [4] - Gross margins improved to 83.6%, up 80 basis points from FY24, and operating margins increased to 35.2%, up 160 basis points from FY24 [4] - Free cash flow reached a record $906 million, up 19% compared to FY24, resulting in a free cash flow margin of 29% [13] Business Line Data and Key Metrics Changes - Q4 revenue grew 8% to $810 million, with global services revenue at $396 million (up 2% year-over-year) and product revenue at $414 million (up 16% year-over-year) [10] - Systems revenue totaled $186 million, up 42% year-over-year, driven by tech refresh and data center modernization [10] - Software revenue was $229 million, slightly up against a strong Q4 of FY24, with perpetual license software up 25% year-over-year [11] Market Data and Key Metrics Changes - Revenue from the Americas grew 7% year-over-year, representing 57% of total revenue, while EMEA and APAC grew 7% and 19%, representing 26% and 17% of revenue, respectively [11] - Enterprise customers accounted for 73% of Q4 product bookings, with government customers at 19% and service providers at 8% [11] Company Strategy and Development Direction - F5's immediate focus is on incident response and enhancing security posture following a security incident, with significant investments in cybersecurity planned for the future [5][7] - The company aims to leverage hybrid multi-cloud adoption and AI-driven infrastructure demand as key growth drivers, with a commitment to innovation in its Application Delivery and Security Platform [21][22] - F5 is transitioning legacy offerings to F5 Distributed Cloud Services, expecting to complete this transition in the first half of FY26 [15] Management's Comments on Operating Environment and Future Outlook - Management anticipates some near-term disruption to sales cycles due to the security incident, with guidance for FY26 revenue growth in the range of 0 to 4% [18] - The company expects to see a return to growth in revenue from SaaS and managed services, driven by the completion of legacy transitions and ongoing demand for hybrid multi-cloud solutions [17] - Management expressed confidence in the long-term growth potential, citing strong demand drivers and a robust pipeline [17] Other Important Information - F5's total security revenue grew 6% to approximately $1.2 billion, representing 39% of total revenue [16] - The company has seen significant growth in AI-related use cases, securing wins with over 30 customers for AI data delivery, runtime security, and factory load balancing [26][27] Q&A Session Summary Question: What form of conservatism has been put into estimates? - Management indicated that customer conservatism may manifest as delays in purchasing decisions and resource allocation towards upgrading environments due to the security incident [36][38] Question: How much of fiscal 2025 growth was due to the product upgrade cycle? - Approximately two-thirds of the systems business growth in FY2025 was attributed to tech refresh, with the remainder from data center capacity expansion [40] Question: How is the potential impact from the security breach sized? - Management took a granular approach to profile revenue streams, identifying which could be more impacted and which would be resilient, with a focus on recurring revenue streams [44][46] Question: What percentage of revenue comes from F5 BIG-IP? - While specific revenue breakdowns are not provided, F5 BIG-IP is noted as the highest revenue product [54] Question: What are the implications of the government shutdown on U.S. Federal business? - Guidance assumes some level of disruption in the federal segment, particularly in Q1, due to project delays related to the government shutdown [78]

Financial Data and Key Metrics Changes - F5 achieved record revenue exceeding $3 billion and operating profit of $1 billion for the first time, with revenue growth of 10% and earnings per share growth of 18% [7][8] - Gross margins improved to 83.6%, up 80 basis points year-over-year, and operating margins increased to 35.2%, up 160 basis points year-over-year [8] - Free cash flow reached $906 million, up 19% compared to FY 2024, highlighting strong financial execution [20] Business Line Data and Key Metrics Changes - Q4 revenue grew 8% to $810 million, with product revenue at $414 million (up 16% year-over-year) and global services revenue at $396 million (up 2% year-over-year) [14] - Systems revenue increased by 42% to $186 million, driven by tech refresh and data center modernization [14] - Software revenue totaled $229 million, slightly up against a strong FY 2024, with perpetual license software up 25% year-over-year [15] Market Data and Key Metrics Changes - Revenue from the Americas grew 7% year-over-year, representing 57% of total revenue, while EMEA and APAC grew 7% and 19%, representing 26% and 17% of revenue, respectively [16] - Enterprise customers accounted for 73% of Q4 product bookings, with government customers at 19% and service providers at 8% [17] Company Strategy and Development Direction - F5's strategy focuses on enhancing security and supporting customers through incident response, with significant investments in cybersecurity [12][24] - The company aims to leverage hybrid multi-cloud adoption and AI infrastructure demand as key growth drivers moving forward [29][36] - F5 is committed to maintaining a strong operating margin while navigating potential near-term disruptions due to recent security incidents [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential near-term impacts on sales cycles due to customer focus on security upgrades, with guidance for FY 2026 revenue growth in the range of 0% to 4% [25][49] - The company remains optimistic about long-term growth driven by hybrid multi-cloud architectures and AI readiness [24][29] - Management emphasized the importance of customer relationships and transparency during the incident response process [13][64] Other Important Information - F5's total security revenue grew 6% to approximately $1.2 billion, representing 39% of total revenue [23] - The company plans to continue using at least 50% of free cash flow for share repurchases in FY 2026 [27] Q&A Session Summary Question: What form of conservatism have you put into the estimates? - Management indicated that resources have been focused on assisting customers with upgrades, which may temporarily disrupt normal sales cycles [50][51] Question: How do you size the potential impact from the security breach? - Management took a granular approach to profile revenue streams, assessing which could be more impacted and which would be resilient [60][62] Question: What percentage of revenue comes from BIG IP? - Management confirmed that BIG IP is the highest revenue product but does not break out specific contributions [72] Question: What drives software and system growth from here? - Management highlighted ongoing trends in multi-year software agreements and the transition to hybrid multi-cloud architectures as key growth drivers [86][88]

Core Insights - F5, Inc. is preparing to release its quarterly earnings on October 27, 2025, with analysts closely monitoring its financial performance [1] Earnings Estimates - Analysts estimate F5's earnings per share (EPS) to be $3.96 for the quarter, consistent with the Zacks Consensus Estimate that has remained stable for 60 days [2][6] - F5's own projections suggest a non-GAAP EPS range of $3.87 to $3.99, with a midpoint of $3.93, indicating a 7.9% decline from the previous year [2] Revenue Projections - Revenue projections for F5 are set between $780 million and $800 million, with the Zacks Consensus Estimate at $792.5 million, representing a 6.1% increase from the previous year [3][6] - The anticipated revenue growth is driven by strong demand for F5's products like BIG-IP and NGINX [3] Financial Metrics - F5 has a price-to-earnings (P/E) ratio of 26.14 and a price-to-sales ratio of 5.73, reflecting the market's valuation of its earnings and revenue [4][6] - The enterprise value to sales ratio is 5.35, and the enterprise value to operating cash flow ratio is 16.37, indicating cash flow efficiency [4] - F5 maintains a low debt-to-equity ratio of 0.075, suggesting a conservative approach to debt, and a current ratio of 1.60 indicates a strong ability to cover short-term liabilities [5][6]