Highlights

  • Fourth quarter fiscal 2026 revenue totaled $917 million, compared with $810 million in the fourth quarter of fiscal year 2025.
  • GAAP net income for the fourth quarter was $186 million, or $3.23 per diluted share, compared with $190 million.
  • The Board authorized an additional $1.5 billion for share repurchases, incremental to $322 million remaining in the existing program.
  • F5 guided fiscal 2027 revenue growth of 8% to 9% and non-GAAP earnings per share of $18.00 to $18.30.

F5, Inc. (NASDAQ:FFIV) shares were trading at USD 369.73 on October 28, 2026, down 19.51%, with a relative volume at time of 9.88. The application delivery and security company announced its Board authorized an additional $1.5 billion for share repurchases on October 23, 2026, and reported fourth quarter and fiscal year 2026 results with fiscal 2027 guidance on October 27, 2026.

F5 is incorporated in Washington and lists its principal executive offices in Seattle, Washington. The company delivers and secures applications and application programming interfaces across on-premises, cloud, edge and hybrid multicloud environments. Its F5 Application Delivery and Security Platform brings these offerings together. F5 reports product revenue, which includes systems and software, and services revenue. Its fiscal year ends September 30.

Fourth Quarter and Fiscal Year 2026 Results

For the fourth quarter ended September 30, 2026, F5 reported revenue of $917 million, representing 13% growth compared with $810 million in the fourth quarter of fiscal year 2025. Product revenue was $510 million, compared with $414 million. Systems revenue of $239 million grew 29%, software revenue of $271 million grew 19%, and services revenue of $408 million grew 3%.

GAAP gross profit was $754 million, with GAAP gross margin of 82.2%, the same margin as the year-ago period. GAAP income from operations was $212 million, with GAAP operating margin of 23.1%, compared with $206 million and 25.4%. GAAP net income was $186 million, or $3.23 per diluted share, compared with $190 million, or $3.26 per diluted share.

On a non-GAAP basis, gross margin was 84.0%, compared with 84.3%. Non-GAAP income from operations was $309 million, with operating margin of 33.7%, compared with $299 million and 37.0%. Non-GAAP net income was $255 million, or $4.42 per diluted share, compared with $257 million, or $4.39 per diluted share.

For fiscal year 2026, revenue totaled $3,417 million, representing 11% growth compared with $3,088 million in fiscal year 2025. Product revenue was $1,793 million, up 19%. GAAP net income was $722 million, or $12.52 per diluted share, compared with $692 million, or $11.80 per diluted share.

Balance Sheet, Cash Flow and Capital Returns

Cash and cash equivalents were $1,590,528 thousand at September 30, 2026, compared with $1,344,273 thousand at September 30, 2025. Inventories were $261,918 thousand, compared with $77,229 thousand.

Net cash provided by operating activities for the year ended September 30, 2026 was $959,489 thousand, compared with $949,666 thousand a year earlier. Payments for repurchase of common stock, including excise taxes, were $601,113 thousand, compared with $502,085 thousand.

On October 23, 2026, the Board authorized an additional $1.5 billion for the common stock repurchase program. The new authorization is incremental to the $322.4 million unused in the existing program. Repurchases may be made in private transactions, accelerated repurchase programs or open market purchases, and the program can be terminated at any time.

Fiscal 2027 and First Quarter Outlook

F5 updated its outlook for fiscal year 2027, guiding for revenue growth of 8% to 9%. The company expects fiscal year 2027 non-GAAP earnings per share in a range of $18.00 to $18.30. For the first quarter of fiscal year 2027, it is guiding to revenue in the range of $875 million to $895 million, with non-GAAP earnings of $4.25 to $4.37 per diluted share.

On the earnings call, management said it expects fiscal 2027 non-GAAP gross margin of 80.5% to 82.5% and non-GAAP operating margin of 33% to 35%. Management also said it expects a fiscal 2027 non-GAAP effective tax rate of 19% to 21%, and expects to continue to increase inventory in fiscal 2027, with the largest increases in the first half. It said it expects fiscal 2027 share repurchases to represent at least 50% of annual free cash flow.