F5 reported third-quarter fiscal 2026 results with total revenue of $865 million, an 11% increase year over year, driven by 19% product revenue growth. GAAP net income was $208 million, or $3.62 per diluted share, while non-GAAP net income was $272 million, or $4.73 per diluted share. The company raised its FY26 revenue and non-GAAP EPS outlook and guided Q4 revenue of $870–$890 million with non-GAAP EPS of $4.14–$4.26.
Financial Highlights
- Revenue: $865 million for Q3 FY26, up 11% from $780 million in Q3 FY25.
- Gross profit (GAAP): $712 million with GAAP gross margin of 82.2% (Q3 FY26).
- Income from operations (GAAP): $213 million, representing a GAAP operating margin of 24.7% (Q3 FY26).
- Net income (GAAP): $208 million, or $3.62 per diluted share (Q3 FY26).
- Non-GAAP net income: $272 million, or $4.73 per diluted share (Q3 FY26).
Business Highlights
- Product momentum: Product revenue grew 19% year over year, contributing materially to overall revenue growth and marking eight consecutive quarters of double-digit product growth.
- Segment performance: Systems revenue rose 32% year over year to $240 million; software revenue was $223 million; services revenue totaled $402 million.
- Operational margins: Non-GAAP operating margin expanded to 35.0% for the quarter, reflecting adjustments for stock-based compensation, amortization, acquisition-related charges, and other items.
- Capital deployment and cash flow: Net cash provided by operating activities was $841 million for the nine months ended June 30, 2026; the company repurchased $501 million of common stock in the period.
- Guidance and outlook: F5 raised its FY26 revenue growth guidance to approximately 9%–10% and increased non-GAAP EPS guidance to $17.21–$17.33; Q4 revenue guidance is $870–$890 million with non-GAAP EPS of $4.14–$4.26.
Original SEC Filing:
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