F5 reported strong first-quarter results with revenue growth driven by product sales, particularly systems revenue. The company raised its full-year outlook, indicating confidence in its market position and demand drivers like AI and hybrid multicloud architectures.
Revenue grew 7% year over year to $822 million, driven by 11% product revenue growth.
positiveSystems revenue grew 37% year over year to $218 million.
positiveNon-GAAP operating margin expanded to 38.2% from 37.4% in the prior year.
positiveRaised full-year fiscal 2026 outlook for revenue, non-GAAP operating margin, and non-GAAP EPS.
positiveSoftware revenue was down 8% against strong results in the prior year period.
attentionGAAP gross margin slightly decreased to 81.5% from 81.7% in the prior year.
attentionGAAP operating margin decreased to 26.0% from 26.8% in the prior year.
attentionPayments for repurchase of common stock significantly increased to $301 million from $125 million in the prior year.
attentionNet cash provided by operating activities decreased to $159 million from $203 million in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Products | N/A | — | — | — |
Services | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Our first quarter revenue of $822 million reflects 7% growth year over year, driven by 11% product revenue growth, including 37% growth in systems revenue.
This strong performance underscores F5’s alignment with durable market demand drivers including the shift to hybrid multicloud architectures, enterprise adoption of AI, and the growing need for converged platforms.
The first quarter also marks our sixth consecutive quarter of double-digit product revenue growth, demonstrating the continued value we are delivering to customers.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.