F5 Q3 revenue beats on product sales growth; FY outlook raised

F5

27/07/2026 21:16

Overview
US application security platform's fiscal Q3 revenue rose 11%, beating analyst expectations
Adjusted EPS for fiscal Q3 beat analyst expectations
Company raised full-year 2026 revenue and earnings guidance

Outlook
F5 raises FY2026 revenue growth outlook to 9%-10% from 7%-8% previously
F5 expects FY2026 non-GAAP EPS of $17.21-$17.33, up from $16.25-$16.55 previously
Company guides Q4 FY2026 revenue to $870 mln-$890 mln and non-GAAP EPS to $4.14-$4.26

Result Drivers
PRODUCT REVENUE GROWTH - Co said 19% product revenue growth, including 32% growth in systems and 7% in software, was the main driver of total revenue increase
SECURITY DEMAND - Co said demand for application security solutions increased as threats became more sophisticated, with AI used to enhance customer protection

Company press release: ID:nBw2LfrHpa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$865 mln
$832.55 mln (10 Analysts)
Q3 Adjusted EPS
Beat
$4.73
$4 (12 Analysts)
Q3 EPS
 
$3.62
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for F5 Inc is $386.00, about 1.6% below its July 24 closing price of $392.21
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)