F5, Inc. Earnings Call Transcripts
Fiscal Year 2026
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Q2 saw 11% revenue growth, record free cash flow, and strong product momentum, especially in systems and software. FY 2026 outlook was raised on robust demand for hybrid multi-cloud, security, and AI, with continued innovation and share gains in key markets.
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The meeting covered director elections, incentive plan approval, executive compensation, and auditor ratification, all of which passed with strong majorities. Shareholders were invited to participate in a Q&A, and final voting results will be filed with the SEC.
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Hybrid multi-cloud and AI trends are driving demand for unified security and data delivery solutions, with recent product refresh cycles showing expansion tied to AI readiness and data sovereignty. Proactive supply chain management and targeted go-to-market investments support growth, while internal AI adoption accelerates innovation.
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Q1 FY26 saw 7% revenue growth, driven by strong systems and product demand, especially in EMEA, with minimal disruption from a security incident. AI and hybrid multi-cloud adoption accelerated, leading to raised FY26 guidance and continued investment in innovation.
Fiscal Year 2025
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A recent security breach prompted rapid customer remediation and strengthened trust, with minimal long-term revenue impact. Software and hardware growth is driven by data center modernization, AI adoption, and a maturing SaaS portfolio, while services and security remain stable and profitable.
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The platform has evolved to address hybrid and multi-cloud complexity, offering unified application delivery and security across all environments. AI adoption is driving new use cases and infrastructure upgrades, while transparency and innovation have strengthened customer trust. Growth is expected to accelerate as software and cloud services expand.
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Fiscal 2025 saw double-digit revenue and EPS growth, record free cash flow, and strong product and security demand, but a major security incident is expected to cause near-term disruption in FY 2026. Guidance anticipates 0%-4% revenue growth, with normalization in the second half.
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Hybrid multi-cloud and AI trends are driving complexity and demand for unified application delivery and security. Market share gains stem from a unique single-platform approach, with strong growth in both refresh and non-refresh demand. Security and AI remain top priorities for future expansion.
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Q3 saw 12% revenue growth, with product revenue up 26% and systems revenue up 39% year-over-year. Strong demand for data center modernization, hybrid multi-cloud, and AI readiness drove results, leading to raised FY25 guidance and robust cash flow.
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Revenue guidance was raised to 6.5%-7.5% for FY25, driven by strong hardware refreshes and anticipated software renewals. Customers are adopting hybrid and multi-cloud strategies, with security and AI readiness influencing deployment choices. Expansion at renewal and unified platform offerings are key growth drivers.
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Revenue guidance was raised amid strong demand and minimal macro impact, with hardware refresh cycles and AI workloads driving growth. Software revenue is expected to grow at a double-digit CAGR, supported by expansion within existing customers and competitive share gains, especially from Citrix.
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Q2 saw 7% revenue growth, 18% EPS growth, and strong systems demand, driven by tech refresh, data center modernization, and AI. FY 2025 guidance was raised, with double-digit growth expected in systems and software, and major platform and AI innovations launched.
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The meeting covered director elections, executive compensation, and auditor ratification, with strong shareholder support for all proposals. No questions were raised by stakeholders, and final voting results will be filed with the SEC.
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Hybrid and multi-cloud adoption is accelerating, driving demand for integrated delivery and security platforms. Product innovation, AI partnerships, and a strong go-to-market focus are fueling customer expansion and competitive wins. Financial outlook is positive, with growth expected from refresh cycles and software renewals.
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Q1 delivered 11% revenue growth and record non-GAAP EPS, driven by strong software and hardware demand, competitive wins, and robust expansion in hybrid multi-cloud and AI solutions. FY2025 guidance was raised, with continued momentum expected in both product and services.
Fiscal Year 2024
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AI-driven demand is creating new hardware and software opportunities, especially in load balancing and security. Software renewals and cross-sell are fueling growth, with Distributed Cloud and NGINX as a service gaining traction. Hardware refreshes and hybrid multi-cloud adoption are key market drivers.
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F5 has evolved into a software-led, hybrid multi-cloud platform provider, with recurring revenue now dominating its business. AI is emerging as a growth driver, especially in traffic management and security, while FY25 guidance points to steady revenue and margin improvements.
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The session highlighted a strategic focus on hybrid and multi-cloud solutions, advanced application and API security, and AI enablement. Improved customer confidence and sales predictability support a positive financial outlook, with innovation and flexibility driving competitive advantage.
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Q4 and FY24 saw record revenue and strong software growth, with FY25 guided for 4%-5% revenue growth, driven by robust subscription renewals and expanding AI and cloud partnerships. Security innovation and a unified product portfolio position the company for continued success.
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Record Q4 and FY 2024 results driven by strong software growth, recurring revenue, and operating margin expansion. FY 2025 guidance calls for 4-5% revenue growth, upper single-digit software growth, and continued share repurchases, with AI opportunities expected to scale in FY 2026 and beyond.
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AI is rapidly transforming IT, with 18% of budgets allocated and 77% of large firms deploying AI apps soon. F5 is embedding AI across its portfolio, focusing on unified ADC solutions and strong partner collaboration to address data, security, and infrastructure needs.
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Leadership transition and platform innovation were highlighted, with strong demand recovery signals and a raised FY24 revenue outlook driven by software renewals and expansion. AI and API security are emerging as significant new growth areas, especially in large enterprise and government segments.
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Leadership changes were highlighted alongside stable enterprise spending and growing AI-driven opportunities. Distributed Cloud Services and flexible commercial models are driving customer expansion, while API security and software growth are key focus areas for the coming year.
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Q3 revenue and EPS exceeded guidance, driven by strong software renewals, new business, and operating discipline. FY 2024 outlook was raised for software growth and EPS, with continued margin improvements and robust capital returns.
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The discussion highlighted a strategic shift toward unified security and delivery across hybrid and multi-cloud environments, with software and SaaS driving future growth. While hardware faces headwinds, double-digit software growth is expected in FY 2025, supported by renewals and a maturing SaaS platform.