AI Takeaway
F5 (FFIV) delivered solid Q1 FY2026 results with revenue of $822.5M (+7.3% YoY) and net income of $180.1M (+8.2% YoY), though operating cash flow declined 21.5% YoY to $159.2M amid a significant increase in financing outflows.
Revenue
$822.47M
++7.30% YoY
EPS (Basic)
$3.12
++9.47% YoY
Gross Margin
81.5%
-0.12% YoY
Operating Income
$214.19M
++4.44% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 7.3% YoY to $822.5M in Q1 FY2026, up from $766.5M in Q1 FY2025, reflecting continued demand for F5's application security and delivery solutions. This marks a healthy acceleration driven by both product and services segments.
Source: Source: 10-Q Income Statement, Q1 FY2026
Gross profit reached $670.7M with a gross margin of 81.5%, essentially flat YoY (down just 0.1 percentage points), demonstrating F5's highly profitable software and services mix. This level of margin consistency underscores the durability of the company's recurring revenue base.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Operating income grew 4.4% YoY to $214.2M, but operating margin contracted modestly to 26.0% from 26.8% in the prior year period, as R&D expenses rose 8.2% YoY to $141.2M, outpacing revenue growth and reflecting continued investment in product innovation.
Source: Source: 10-Q Income Statement, Q1 FY2026
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Upgrade to unlockOperating cash flow declined 21.5% YoY to $159.2M despite strong net income of $180.1M, indicating potential working capital headwinds or timing differences in collections and payments. Sustained divergence between net income and cash generation could pressure F5's ability to fund buybacks and investments organically.
Source: Source: 10-Q Cash Flow Statement, Q1 FY2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $4.45 versus the $3.72 analyst consensus — a +19.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $822.47M | $766.49M | +7.30% |
Cost of Revenue | $151.78M | $140.51M | +8.02% |
Gross Profit | $670.68M | $625.98M | +7.14% |
Operating Income | $214.19M | $205.08M | +4.44% |
Net Income | $180.05M | $166.44M | +8.18% |
EPS (Basic) | $3.12 | $2.85 | +9.47% |
EPS (Diluted) | $3.10 | $2.82 | +9.93% |
R&D Expense | $141.16M | $130.52M | +8.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.29B | $5.9B | +6.63% |
Current Assets | $2.52B | $2.34B | +7.40% |
Current Liabilities | $1.62B | $1.59B | +1.97% |
Cash & Equivalents | $1.2B | $1.15B | +4.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $159.21M | $202.78M | -21.49% |
Investing Cash Flow | $-10.56M | $-9.97M | -5.86% |
Financing Cash Flow | $-293.02M | $-114.68M | -155.51% |
D&A | $24.61M | $22.67M | +8.58% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 81.5% | 81.7% | -0.12% |
Operating Margin | 26.0% | 26.8% | -0.71% |
Net Margin | 21.9% | — | — |
ROA | 2.9% | — | — |
Current Ratio | $1.554 | — | — |
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F5 (FFIV) reported Q1 FY2026 revenue of $822.5M, up 7.3% YoY, and net income of $180.1M, up 8.2% YoY. Diluted EPS came in at $3.10, a 9.9% increase from $2.82 in Q1 FY2025, reflecting both earnings growth and the benefit of share repurchases.
F5's revenue grew 7.3% year-over-year to $822.5M in Q1 FY2026, compared to $766.5M in Q1 FY2025. This growth reflects continued demand for F5's application security and delivery solutions across its product and services portfolio.
F5 maintained an exceptionally high gross margin of 81.5% in Q1 FY2026, essentially flat compared to 81.7% in Q1 FY2025. This reflects the company's highly profitable software and services-oriented business model.
F5's operating cash flow fell 21.5% YoY to $159.2M in Q1 FY2026, down from $202.8M in Q1 FY2025, despite net income growing to $180.1M. The divergence suggests working capital headwinds or timing differences in cash collections and payments during the quarter.
Based on the financial data, key risks include the significant decline in operating cash flow (-21.5% YoY), a surge in financing outflows to -$293.0M (likely from accelerated buybacks), and R&D expense growth of 8.2% outpacing revenue growth of 7.3%, which compressed operating margins by approximately 70 basis points to 26.0%.