Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
F5’s fiscal third quarter was defined by a sharp acceleration in hardware demand, with systems revenue surging 32.4% as customers invested in application delivery and security upgrades. At the same time, the company continued to absorb costs tied to the October 2025 Cyber Incident, which drove double-digit increases in professional services spending across both R&D and G&A functions. The tension was evident in the operating margin, which dipped 50 basis points despite a 130-basis-point expansion in gross margin, as revenue growth alone did not fully offset the rise in expense lines. Free cash flow generation remained robust, enabling $501.1 million in share repurchases during the first nine months of the fiscal year.
Revenue
$865.08M
+10.85% YoY
EPS (Diluted)
$3.62
+11.38% YoY
Gross Margin
82.2%
+1.3 pts YoY
Operating Income
$213.27M
+8.63% YoY
Source: SEC XBRL
F5 (FFIV) reported Q3 FY2026 revenue of $865.08M, up 10.9% year over year. Operating margin was 24.7%, down 0.5 points from 25.2% a year earlier. FFIV's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 4.73 | 4.08 | Beat +15.9% |
| Mar 2026 | 3.90 | 3.53 | Beat +10.6% |
| Dec 2025 | 4.45 | 3.72 | Beat +19.5% |
| Sep 2025 | 4.39 | 4.05 | Beat +8.5% |
Adjusted (non-GAAP) EPS of $4.73 versus the $4.08 analyst consensus — a +15.9% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.62.
Compiled by AI from 10-Q Item 2 of this filing
Systems revenue increased 32.4% year-over-year, driven by higher customer demand for F5’s hardware and integrated solutions, reflecting the strength of the application delivery market.
Source: 10-Q Item 2 MD&A
Software revenue grew 7.4%, primarily due to increased sales of subscription-based offerings, as customers continued to adopt F5’s SaaS and deployable software models.
Source: 10-Q Item 2 MD&A
Research and development expenses rose 20.8% to $164.7 million, with technology costs up $13.5 million and professional services costs increasing $2.6 million, largely due to the Cyber Incident response.
Source: 10-Q Item 2 MD&A
General and administrative expenses increased 21.5%, including an incremental $3.2 million in professional services tied to the Cyber Incident, alongside higher personnel costs.
Source: 10-Q Item 2 MD&A
Cash from operations reached $841.4 million for the first nine months of fiscal 2026, up 13.5% year-over-year, enabling $501.1 million in share repurchases and excise tax payments.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 2 high, 3 medium, 0 low
The Cyber Incident involved a threat actor maintaining persistent access and exfiltrating files. Future breaches could lead to remediation costs, customer loss, regulatory action, and reputational damage. The company acknowledges that despite security measures, attacks may recur.
Source: 10-Q Item 1A Risk Factors
AI technologies may contain biases, flaws, or unintended consequences, and the evolving regulatory landscape could impose significant compliance costs. Additionally, AI advancements may automate functions that currently require F5’s products, threatening demand.
Source: 10-Q Item 1A Risk Factors
New or enhanced products could contain undetected errors or vulnerabilities that disable customer networks or expose them to attacks, leading to costly warranty and repair obligations, customer relationship damage, and potential legal claims.
Source: 10-Q Item 1A Risk Factors
Third parties that connect to F5’s network or share data may have security weaknesses, and a compromise of any such vendor could have consequences similar to a direct security event at F5.
Source: 10-Q Item 1A Risk Factors
AI tools can enable faster vulnerability discovery and exploitation by hostile actors, including nation-states. These tools may be used to target F5’s own AI infrastructure and products, shortening detection windows and demanding greater response resources.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 865.08 $M | 780.37 $M | +10.85% |
Cost of Revenue $M | 153.56 $M | 148.63 $M | +3.32% |
Gross Profit $M | 711.51 $M | 631.74 $M | +12.63% |
Operating Income $M | 213.27 $M | 196.32 $M | +8.63% |
Net Income $M | 208.21 $M | 189.91 $M | +9.63% |
EPS (Basic) $ | 3.67 $ | 3.29 $ | +11.55% |
EPS (Diluted) $ | 3.62 $ | 3.25 $ | +11.38% |
R&D Expense $M | 164.66 $M | 136.35 $M | +20.77% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
F5 (FFIV) delivered strong Q2 FY2026 results with revenue of $811.7M (+11.0% YoY) and gross margin expanding to 81.4%, driven by robust operating cash flow of $525.1M year-to-date, though net income growth of just 1.5% reflects higher operating expenses.
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.
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