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1月前
F5 Reports Second Quarter Results with 11% Revenue GrowthApril 28, 2026 4:05 PM
Business Wire
Including 22% Product Growth
F5, Inc. (NASDAQ: FFIV), the global leader in delivering and securing every app and API, today announced financial results for its second quarter fiscal year 2026 ended March 31, 2026.
“Our second quarter revenue of $812 million grew 11% year over year, driven by 22% product revenue growth—our seventh straight quarter of double-digit product growth,” said François Locoh-Donou, F5’s Chairman, President, and CEO. “Our continued strong performance reflects rising demand for F5’s solutions anchored in structural demand drivers, including growing hybrid multicloud adoption, an expanding cybersecurity threat landscape, and an inflection in AI inference. With our continued emphasis on customer-focused innovation, F5 is well positioned to help customers scale and secure the AI-powered applications of the future.”
Second Quarter Performance Summary
Second quarter fiscal year 2026 revenue totaled $812 million, representing 11% growth compared with $731 million in the second quarter of fiscal year 2025. Systems revenue of $226 million grew 26% from the year-ago period while software revenue of $184 million grew 17%. Services revenue of $401 million grew 2% from the year-ago period.
GAAP gross profit for the second quarter of fiscal year 2026 was $661 million, representing GAAP gross margin of 81.4%. This compares with GAAP gross profit of $590 million in the year-ago period, which represented GAAP gross margin of 80.7%. Non-GAAP gross profit for the second quarter of fiscal year 2026 was $680 million, representing non-GAAP gross margin of 83.7%. This compares with non-GAAP gross profit of $607 million in the year-ago period, which represented non-GAAP gross margin of 83.1%.
GAAP income from operations for the second quarter of fiscal year 2026 was $179 million, representing GAAP operating margin of 22.1%. This compares with GAAP income from operations of $159 million in the year-ago period, which represented GAAP operating margin of 21.7%. Non-GAAP income from operations for the period was $274 million, representing non-GAAP operating margin of 33.8%. This compares to non-GAAP income from operations of $233 million in the year-ago period, which represented non-GAAP operating margin of 31.9%.
GAAP net income for the second quarter of fiscal year 2026 was $148 million, or $2.58 per diluted share compared to $146 million, or $2.48 per diluted share, in the second quarter of fiscal year 2025. Non-GAAP net income for the second quarter of fiscal year 2026 was $223 million, or $3.90 per diluted share, compared to $201 million, or $3.42 per diluted share, in the second quarter of fiscal year 2025.
Performance Summary Tables
GAAP Measures
Non-GAAP Measures
($ in millions except EPS)
Q2 FY2026
Q2 FY2025
($ in millions except EPS)
Q2 FY2026
Q2 FY2025
Revenue
$
812
$
731
Revenue
$
812
$
731
Gross profit
$
661
$
590
Gross profit
$
680
$
607
Gross margin
81.4%
80.7%
Gross margin
83.7%
83.1%
Operating profit
$
179
$
159
Operating profit
$
274
$
233
Operating margin
22.1%
21.7%
Operating margin
33.8%
31.9%
Net income
$
148
$
146
Net income
$
223
$
201
EPS
$
2.58
$
2.48
EPS
$
3.90
$
3.42
A reconciliation of GAAP to non-GAAP measures is included with the attached financial statements. Additional information about non-GAAP financial information is included in this release.
Business Outlook
F5 raised its outlook for its fiscal year 2026, guiding for revenue growth in a range of 7% to 8%, up from 5% to 6% previously. F5 expects non-GAAP earnings per share in a range of $16.25 to $16.55, up from $15.65 to $16.05 previously.
For the third quarter of fiscal year 2026, F5 is guiding to revenue in the range of $820 million to $840 million, with non-GAAP earnings in the range of $3.91 to $4.03 per diluted share.
All forward-looking non-GAAP measures included in the Company’s business outlook exclude estimates for amortization of intangible assets, share-based compensation expenses, significant effects of tax legislation and judicial or administrative interpretation of tax regulations (including the impact of income tax reform), non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions or divestitures, acquisition-related charges and write-downs, cyber incident costs, restructuring charges, facility exit costs, or other non-recurring charges that may occur in the period. F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding U.S. generally accepted accounting principles or GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.
Live Webcast and Conference Call
F5 will host a live webcast to review its financial results and outlook today, April 28, 2026, at 4:30 pm ET. Open to the public, the live webcast, supplemental financial information, and earnings slides are accessible from the investor relations page of F5.com. To participate in the live call via telephone in the U.S., dial +1 (888) 596-4144; from Canada, dial +1 (647) 495-7514; from outside the U.S. and Canada, dial +1 (646) 968-2525, and reference conference ID 6076834. Please call at least five minutes prior to the call start time. The webcast replay will be archived on the investor relations portion of F5’s website.
Forward Looking Statements
This press release contains forward-looking statements including, among other things, that F5’s continued strong performance reflects rising demand for F5’s solutions anchored in durable structural demand drivers, including hybrid multicloud adoption, an expanding cybersecurity threat landscape, and rapid enterprise AI adoption, that F5’s continued focus on customer-focused innovation positions F5 well to help customers scale and secure the AI-powered applications of the future, the Company’s future financial performance including revenue growth, earnings growth, future customer demand, and the performance and benefits of the Company's products. These, and other statements that are not historical facts, are forward-looking statements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors. Such forward-looking statements involve risks and uncertainties, as well as assumptions and other factors that, if they do not fully materialize or prove correct, could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: customer acceptance of offerings; disruptions to the global supply chain resulting in inability to source required parts for F5’s products or the ability to only do so at greatly increased prices thereby impacting our revenues and/or margins; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; F5’s ability to successfully integrate acquired businesses’ products with F5 technologies; the ability of F5’s sales professionals and distribution partners to sell new solutions and service offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into F5’s markets, and new product and marketing initiatives by our competitors; increased sales discounts; the business impact of the acquisitions and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of completion of acquisitions; uncertain global economic conditions which may result in reduced customer demand for our products and services and changes in customer payment patterns; litigation involving patents, intellectual property, shareholder and other matters, and governmental investigations; potential security flaws in the Company’s networks, products or services; cybersecurity attacks on its networks, products or services; natural catastrophic events; a pandemic or epidemic; F5’s ability to sustain, develop and effectively utilize distribution relationships; F5’s ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5’s ability to expand in international markets; the unpredictability of F5’s sales cycle; the ability of F5 to execute on its share repurchase program including the timing of any repurchases; future prices of F5’s common stock; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K and other documents that we may file or furnish from time to time, which could cause actual results to vary from expectations. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in F5’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. All forward-looking statements in this press release are based on information available as of the date hereof and qualified in their entirety by this cautionary statement. F5 assumes no obligation to revise or update these forward-looking statements.
GAAP to non-GAAP Reconciliation
F5’s management evaluates and makes operating decisions using various operating measures. These measures are generally based on the revenues of its products, services operations, and certain costs of those operations, such as cost of revenues, research and development, sales and marketing and general and administrative expenses. One such measure is GAAP net income excluding, as applicable, stock-based compensation, amortization and impairment of purchased intangible assets, facility-exit costs, acquisition-related charges, net of taxes, cyber incident costs, restructuring charges, and certain non-recurring tax expenses and benefits, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. This measure of non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the Company would accrue if it used non-GAAP results instead of GAAP results to calculate the Company’s tax liability.
The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are outlined below:
Stock-based compensation. Stock-based compensation consists of expense for stock options, restricted stock, and employee stock purchases through the Company’s Employee Stock Purchase Plan. Although stock-based compensation is an important aspect of the compensation of F5’s employees and executives, management believes it is useful to exclude stock-based compensation expenses to better understand the long-term performance of the Company’s core business and to facilitate comparison of the Company’s results to those of peer companies.
Amortization and impairment of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. On a non-recurring basis, when certain events or circumstances are present, management may also be required to write down the carrying value of its purchased intangible assets and recognize impairment charges. Management does not believe these charges accurately reflect the performance of the Company’s ongoing operations; therefore, they are not considered by management in making operating decisions. However, investors should note that the use of intangible assets contributed to F5’s revenues earned during the periods presented and will contribute to F5’s future period revenues as well.
Facility-exit costs. F5 has incurred certain non-recurring right-of-use asset impairment charges, and other related recurring costs in connection with the exit of its leased facilities. These charges are not representative of the ongoing activity or costs to the business. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.
Acquisition-related charges, net. F5 does not acquire businesses on a predictable cycle, and the terms and scope of each transaction can vary significantly and are unique to each transaction. F5 excludes acquisition-related charges from its non-GAAP financial measures to provide a useful comparison of the Company’s operating results to prior periods and to its peer companies. Acquisition-related charges consist of planning, execution and integration costs incurred directly as a result of an acquisition.
Cyber incident costs. F5 has incurred certain non-recurring expenses in connection with the investigation and remediation of the Cyber Incident. Management believes it is useful to exclude these expenses as they are not representative of our ongoing operations and to facilitate comparison of the Company’s historical results and to those of peer companies.
Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP financial statements, primarily related to workforce reductions and costs associated with exiting facility-lease commitments. F5 excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.
Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the Company’s core business operations and facilitates comparisons to the Company’s historical operating results. Although F5’s management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management’s reliance on this measure is limited because items excluded from such measures could have a material effect on F5’s earnings and earnings per share calculated in accordance with GAAP. Therefore, F5’s management will use its non-GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the Company’s core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP.
F5 believes that presenting its non-GAAP measures of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the Company’s core business and is used by management in its own evaluation of the Company’s performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the Company provides investors these supplemental measures since, with reconciliation to GAAP, it may provide additional insight into the Company’s operational performance and financial results.
For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section in our attached Condensed Consolidated Income Statements entitled “Non-GAAP Financial Measures.”
About F5
F5, Inc. (NASDAQ: FFIV) is the global leader that delivers and secures every app. Backed by three decades of expertise, F5 has built the industry’s premier platform—F5 Application Delivery and Security Platform (ADSP)—to deliver and secure every app, every API, anywhere: on-premises, in the cloud, at the edge, and across hybrid, multicloud environments. F5 is committed to innovating and partnering with the world’s largest and most advanced organizations to deliver fast, available, and secure digital experiences. Together, we help each other thrive and bring a better digital world to life.
For more information visit f5.com
Explore F5 Labs threat research at f5.com/labs
Follow to learn more about F5, our partners, and technologies: Blog | LinkedIn | X | YouTube | Instagram | Facebook
F5 is a trademark, service mark, or tradename of F5, Inc., in the U.S. and other countries.
SOURCE: F5, Inc.
F5, Inc.
Consolidated Balance Sheets
(unaudited, in thousands)
March 31,
September 30,
2026
2025
Assets
Current assets
Cash and cash equivalents
$
1,442,811
$
1,344,273
Accounts receivable, net of allowances of $3,173 and $2,877
425,640
414,433
Inventories
90,297
77,229
Other current assets
743,754
682,766
Total current assets
2,702,502
2,518,701
Property and equipment, net
175,356
156,947
Operating lease right-of-use assets
184,461
185,601
Long-term investments
20,814
15,693
Deferred tax assets
467,457
446,388
Goodwill
2,443,605
2,443,882
Other assets, net
503,277
552,280
Total assets
$
6,497,472
$
6,319,492
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable
$
79,521
$
83,972
Accrued liabilities
329,068
315,383
Deferred revenue
1,268,570
1,213,226
Total current liabilities
1,677,159
1,612,581
Deferred tax liabilities
1,926
1,921
Deferred revenue, long-term
849,740
786,011
Operating lease liabilities, long-term
226,579
230,749
Other long-term liabilities
92,493
96,231
Total long-term liabilities
1,170,738
1,114,912
Commitments and contingencies
Shareholders’ equity
Preferred stock, no par value; 10,000 shares authorized, no shares issued and outstanding
-
-
Common stock, no par value; 200,000 shares authorized, 56,753 and 57,684
shares issued and outstanding
52,585
42,023
Accumulated other comprehensive loss
(19,035
)
(18,324
)
Retained earnings
3,616,025
3,568,300
Total shareholders' equity
3,649,575
3,591,999
Total liabilities and shareholders' equity
$
6,497,472
$
6,319,492
F5, Inc.
Consolidated Income Statements
(unaudited, in thousands, except per share amounts)
Three Months Ended
Six Months Ended
March 31,
March 31,
2026
2025
2026
2025
Net revenues
Products
$
410,515
$
337,196
$
820,798
$
705,693
Services
401,185
393,927
813,367
791,919
Total
811,700
731,123
1,634,165
1,497,612
Cost of net revenues
Products
90,890
81,287
183,161
164,123
Services
60,010
59,672
119,524
117,346
Total
150,900
140,959
302,685
281,469
Gross profit
660,800
590,164
1,331,480
1,216,143
Operating expenses
Sales and marketing
239,411
218,061
464,188
424,096
Research and development
151,039
136,561
292,200
267,079
General and administrative
91,647
76,645
182,245
149,668
Restructuring charges
(315
)
-
(358
)
11,321
Total
481,782
431,267
938,275
852,164
Income from operations
179,018
158,897
393,205
363,979
Other income, net
10,199
12,303
18,934
16,265
Income before income taxes
189,217
171,200
412,139
380,244
Provision for income taxes
41,462
25,670
84,330
68,269
Net income
$
147,755
$
145,530
$
327,809
$
311,975
Net income per share - basic
$
2.61
$
2.51
$
5.73
$
5.37
Weighted average shares - basic
56,708
57,886
57,184
58,098
Net income per share - diluted
$
2.58
$
2.48
$
5.68
$
5.30
Weighted average shares - diluted
57,298
58,764
57,736
58,913
F5, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Six Months Ended
March 31,
2026
2025
Operating activities
Net income
$
327,809
$
311,975
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation
128,001
116,792
Depreciation and amortization
49,185
45,137
Non-cash operating lease costs
14,959
15,792
Deferred income taxes
(20,582
)
(39,212
)
Other
(3,488
)
3,746
Changes in operating assets and liabilities (excluding effects of the acquisition of businesses):
Accounts receivable
(11,751
)
7,275
Inventories
(13,068
)
8,498
Other current assets
(59,744
)
(53,457
)
Other assets
21,379
(28,434
)
Accounts payable and accrued liabilities
(10,142
)
(33,844
)
Deferred revenue
119,073
124,640
Lease liabilities
(16,503
)
(19,529
)
Net cash provided by operating activities
525,128
459,379
Investing activities
Purchases of investments
(2,910
)
(1,900
)
Maturities of investments
402
-
Sales of investments
1,343
-
Acquisition of businesses, net of cash acquired
-
(10,100
)
Purchases of property and equipment
(28,066
)
(18,576
)
Net cash used in investing activities
(29,231
)
(30,576
)
Financing activities
Proceeds from the exercise of stock options and
purchases of stock under employee stock purchase plan
22,940
23,871
Payments for repurchase of common stock, including excise taxes
(401,102
)
(252,068
)
Taxes paid related to net share settlement of equity awards
(18,118
)
(16,083
)
Net cash used in financing activities
(396,280
)
(244,280
)
Net increase in cash, cash equivalents and restricted cash
99,617
184,523
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(1,031
)
(1,606
)
Cash, cash equivalents and restricted cash, beginning of period
1,346,368
1,078,340
Cash, cash equivalents and restricted cash, end of period
$
1,444,954
$
1,261,257
Supplemental disclosures of cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities
$
20,432
$
22,828
Supplemental disclosures of non-cash activities
Right-of-use assets obtained in exchange for lease obligations
$
14,619
$
36,893
F5, Inc.
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands, except percentages and per share amounts)
Three Months Ended
Six Months Ended
March 31,
March 31,
2026
2025
2026
2025
Net revenues
$
811,700
$
731,123
$
1,634,165
$
1,497,612
Gross profit and gross margin:
GAAP gross profit and gross margin
$
660,800
81.4
%
$
590,164
80.7
%
$
1,331,480
81.5
%
$
1,216,143
81.2
%
Adjustments to gross profit and gross margin:
Stock-based compensation
$
7,473
0.9
%
$
7,393
1.0
%
$
14,299
0.9
%
$
14,793
1.0
%
Amortization and impairment of purchased intangible assets
10,640
1.3
%
9,283
1.3
%
21,280
1.3
%
18,567
1.2
%
Facility-exit costs
90
0.0
%
437
0.1
%
182
0.0
%
561
0.0
%
Cyber incident costs
770
0.1
%
-
-
1,646
0.1
%
-
-
Non-GAAP gross profit and gross margin
$
679,773
83.7
%
$
607,277
83.1
%
$
1,368,887
83.8
%
$
1,250,064
83.5
%
Income from operations and operating margin:
GAAP income from operations and operating margin
$
179,018
22.1
%
$
158,897
21.7
%
$
393,205
24.1
%
$
363,979
24.3
%
Adjustments to income from operations and operating margin:
Stock-based compensation
$
67,996
8.4
%
$
58,884
8.1
%
$
128,001
7.8
%
$
116,792
7.8
%
Amortization and impairment of purchased intangible assets
11,452
1.4
%
10,095
1.4
%
22,904
1.4
%
20,238
1.4
%
Facility-exit costs
922
0.1
%
4,264
0.6
%
1,853
0.1
%
5,484
0.4
%
Acquisition-related charges
9,021
1.1
%
1,214
0.2
%
18,838
1.2
%
1,905
0.1
%
Cyber incident costs
6,037
0.7
%
-
-
23,525
1.4
%
-
-
Restructuring charges
(315
)
0.0
%
-
-
(358
)
0.0
%
11,321
0.8
%
Non-GAAP income from operations and operating margin
$
274,131
33.8
%
$
233,354
31.9
%
$
587,968
36.0
%
$
519,719
34.7
%
Net income:
GAAP net income
$
147,755
$
145,530
$
327,809
$
311,975
Adjustments to net income:
Stock-based compensation
$
67,996
$
58,884
$
128,001
$
116,792
Amortization and impairment of purchased intangible assets
11,452
10,095
22,904
20,238
Facility-exit costs
922
4,264
1,853
5,484
Acquisition-related charges
9,021
1,214
18,838
1,905
Cyber incident costs
6,037
-
23,525
-
Restructuring charges
(315
)
-
(358
)
11,321
Tax effects related to above items
(19,672
)
(18,893
)
(40,613
)
(39,649
)
Non-GAAP net income
$
223,196
$
201,094
$
481,959
$
428,066
Net income per share - diluted:
GAAP net income per share — diluted
$
2.58
$
2.48
$
5.68
$
5.30
Adjustments to GAAP net income per share — diluted:
Stock-based compensation
$
1.19
$
1.00
$
2.22
$
1.98
Amortization and impairment of purchased intangible assets
0.20
0.17
0.40
0.34
Facility-exit costs
0.02
0.07
0.03
0.09
Acquisition-related charges
0.16
0.02
0.33
0.03
Cyber incident costs
0.11
-
0.41
-
Restructuring charges
(0.01
)
-
(0.01
)
0.19
Tax effects related to above items
(0.34
)
(0.32
)
(0.70
)
(0.67
)
Non-GAAP net income per share — diluted
$
3.90
$
3.42
$
8.35
$
7.27
Weighted average shares — diluted
57,298
58,764
57,736
58,913
Note: Numbers and percentages are rounded for presentation purposes and may not foot.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428200491/en/
Investors
Suzanne DuLong
+1 (206) 272-7049
s.dulong@f5.com
Media
Rob Gruening
+1 (206) 272-6208
r.gruening@f5.com
Original: F5 Reports Second Quarter Results with 11% Revenue Growth
US Market News
2月前
The $240 Billion Race to Rebuild Cybersecurity Before Quantum ArrivesApril 17, 2026 9:00 AM
PR Newswire (US)
Issued on behalf of Quantum Secure Encryption Corp.Equity-Insider.com News CommentaryVANCOUVER, BC, April 17, 2026 /PRNewswire/ -- The old playbook is dead. Gartner now forecasts global cybersecurity spending will hit $240 billion in 2026, up 12.5% from last year, as enterprises scramble to rebuild their defenses against two converging threats: ransomware attacks that now cost an average of $5.08 million per breach, and AI powered intrusions that compress attacker breakout times to under 30 minutes[1]. NIST's latest post-quantum migration guidance is telling organizations to start their cryptographic overhauls now, not later, because adversaries are already harvesting encrypted data today with plans to crack it once quantum computing matures[2]. That urgency is creating a pivotal window for companies built around cryptographic agility and autonomous threat detection: Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8), Commvault (NASDAQ: CVLT), NetApp (NASDAQ: NTAP), Zscaler (NASDAQ: ZS), and F5 (NASDAQ: FFIV). The capital flows tell the story. IDC projects global security spending will exceed $308 billion in 2026, with unified AI driven platforms and zero trust architectures absorbing the largest share of new enterprise budgets[3]. Fresh research from Gigamon confirms the shift: 87% of organizations now rank "harvest now, decrypt later" quantum attacks as a top concern, validating cryptographic resilience and continuous verification as the primary value drivers for this cycle[4].Quantum Secure Encryption (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8) has launched QPA v2, an enterprise platform built to do something most organizations have been putting off: figure out exactly where their encryption is vulnerable to quantum computing, and lay out a step-by-step plan to fix it before it matters.The Vancouver-based company designed QPA v2 around the idea that most large organizations already know quantum computing poses a threat to current encryption. What they lack is a practical way to act on it. The platform delivers a planning wizard covering governance, budgets, and migration timelines, AI-enhanced modules that score an organization's cryptographic readiness, and inventory tools that scan software, hardware, and encryption components to surface what needs upgrading. A centralized executive dashboard gives leadership a real-time view of risk exposure and migration progress across the entire organization. QSE says the platform is already live and in use with both existing and prospective clients."Organizations are now moving from understanding quantum risk to actively planning for it," said Ted Carefoot, CEO of QSE. "QPA v2 is designed to support that transition by providing a structured, repeatable framework that enables enterprises and public-sector organizations to assess their current state, prioritize risk, and plan their migration toward post-quantum cryptographic standards."The company's public-sector push is already producing results. QSE recently landed its first municipal government pilot through its membership in MISA (Municipal Information Systems Association), a national network connecting Canadian municipalities with new technology. That pilot municipality is now using QPA to identify which systems depend on encryption that quantum computers could eventually crack, and to begin planning replacements. QSE says conversations with additional municipalities are already underway.The commercial footprint has grown just as quickly. Since November 2025, QSE has expanded from four to thirteen operational markets worldwide, with eleven value-added distributors active and two more partnerships expected to close shortly. The company also joined CADSI (Canadian Association of Defence and Security Industries), creating new pathways into Canadian defence and public-sector procurement.QPA v2 integrates with QSE's broader product suite, including its quantum-resilient key infrastructure, QAuth identity platform, and encrypted storage solutions. QSE is a Canadian post-quantum security company helping organizations protect sensitive data from the more powerful cyberattacks quantum computing is expected to enable, serving commercial, enterprise, and government clients ahead of a generational shift in encryption.CONTINUED… Read this and more on QSE at: https://equity-insider.com/2025/03/18/is-scope-technologies-corp-cse-scpe-otcqb-scpcf-the-next-big-player-in-quantum-cybersecurity/Other industry developments and happenings in the market include:Commvault (NASDAQ: CVLT) and NetApp (NASDAQ: NTAP) announced a strategic alliance to deliver an integrated enterprise data protection and cyber resilience solution spanning on-premises and cloud environments. The unified platform combines Commvault's recovery and protection capabilities with NetApp's AI-driven ransomware detection to give organizations confidence that data remains available, immutable, and recoverable against an expanding threat landscape."The first step in building cyber resilience in your organization is the ability to recover with trust and speed," said Pranay Ahlawat, Chief Technology and AI Officer at Commvault. "Together Commvault and NetApp detect potential attacks close to the data and make trusted recovery decisions to quickly, cleanly, and completely restore data at scale. Our joint customers will be able to innovate with confidence that their data and their business can be resilient in the face of disruption.""This alliance reinforces NetApp and Commvault's leadership in the rapidly evolving cyber resilience and data protection market," said Dallas Olson, Chief Commercial Officer at NetApp. "Together we're helping customers make their infrastructure intelligent and secure so they have the confidence that their data is always available, protected, and recoverable—no matter where it lives—while expanding our joint go-to-market reach and driving growth in a high-demand segment."The alliance's closed-loop recovery architecture integrates NetApp's AI-powered Autonomous Ransomware Protection on primary storage with Commvault's threat-aware backup and Synthetic Recovery workflows, targeting shorter rollback windows and faster return to operations. Future joint innovation will incorporate NetApp ONTAP restore technology to further reduce data loss and improve recovery speed across hybrid environments.Zscaler (NASDAQ: ZS) has significantly expanded its data sovereignty capabilities across its Zero Trust Exchange cloud security platform, introducing new regional deployments including a forthcoming presence in Canada. The company operates 160+ data centers globally and has built a decentralized architecture with fully isolated control, data, and logging planes, ensuring sensitive data never leaves its required jurisdiction."The true measure of a security cloud isn't just global performance, but its ability to adapt to local realities," said Misha Kuperman, Chief Reliability Officer at Zscaler. "Effective data sovereignty requires customers to have verified authority over their data residency, telemetry and control data plane data. By separating control, data, and logging planes with a decentralized architecture, Zscaler enables customers to align with strict local sovereignty requirements while maintaining the resilience and availability needed for global business continuity."New capabilities include in-region SSL inspection and malware analysis, certified on-premises flexibility through Private Service Edges, and a "Collect Once, Certify All" compliance framework accelerating validation for GDPR, NIS2, and DoD IL5. Zscaler owns and operates its own cloud infrastructure, eliminating single points of failure and supporting business continuity for major financial institutions and government agencies worldwide.F5 (NASDAQ: FFIV) has announced a new alliance with Forcepoint to help enterprises secure AI across its full lifecycle, connecting data discovery and classification with runtime protection and continuous assurance. The partnership combines Forcepoint's AI-native Data Security Posture Management capabilities with F5's red teaming and AI guardrails functionality within the F5 Application Delivery and Security Platform, giving security teams real-time visibility into data vulnerabilities, runtime controls over AI interactions, and continuous monitoring for misuse or abnormal behavior."Enterprises are moving AI initiatives from experimentation to production faster than most security programs can adapt," said John Maddison, Chief Marketing Officer of F5. "By combining Forcepoint's deep data intelligence and contextual awareness with F5's advanced application security and runtime protections, organizations eliminate operational security gaps with unmatched confidence and control in their AI operations."The combined solution addresses a growing gap in enterprise security architecture where data governance, application security, and runtime protections have historically operated in silos. F5 secures AI systems at runtime by enforcing policies across APIs, gateways, applications, and AI agents, defending against prompt abuse, data exfiltration, and emerging threats as organizations scale AI deployment across copilots, assistants, and automated workflows.FURTHER READING: https://equity-insider.com/2025/03/18/is-scope-technologies-corp-cse-scpe-otcqb-scpcf-the-next-big-player-in-quantum-cybersecurity/CONTACT:
EQUITY INSIDER
info @acblanke1DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has previously been paid a fee for QSE - Quantum Secure Encryption Corp. advertising and digital media from the company directly, which has since expired. There may be 3rd parties who may have shares QSE - Quantum Secure Encryption Corp., and may liquidate their shares which could have a negative effect on the price of the stock. Previous compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of QSE - Quantum Secure Encryption Corp. which were purchased as a part of a private placement, and in the open market. MIQ reserves the right to buy and sell, and will buy and sell shares of QSE - Quantum Secure Encryption Corp. at any time hereafter without any further notice. We also expect further compensation in the future as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.SOURCES:https://www.elisity.com/blog/2026-cybersecurity-budget-complete-enterprise-planning-guide https://pages.nist.gov/nccoe-migration-post-quantum-cryptography/FAQ/ https://www.biztechreports.com/news-archive/2026/3/20/global-security-spend-to-exceed-300-billion-in-2026-as-the-adoption-of-ai-driven-security-platforms-gains-momentum-idc-march-23-2026 https://itwire.com/guest-articles/guest-research/quantum-threats-move-from-theory-to-reality-as-%E2%80%98harvest-now,-decrypt-later%E2%80%99-attacks-rise.htmlLogo: https://mma.prnewswire.com/media/2840019/5919891/Equity_Insider_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/the-240-billion-race-to-rebuild-cybersecurity-before-quantum-arrives-302744570.html
Original: The $240 Billion Race to Rebuild Cybersecurity Before Quantum Arrives
US Market News
3月前
F5 Strengthens Its Application Delivery and Security Platform to Simplify Operations and Accelerate Secure AI AdoptionMarch 11, 2026 12:00 PM
Business Wire
New platform enhancements—including F5 Insight for ADSP—offer unified observability and proactive intelligence for modern IT environments
Today at AppWorld, F5 (NASDAQ: FFIV), the global leader in delivering and securing every app and API, unveiled a major evolution of the F5 Application Delivery and Security Platform (ADSP). In tandem with F5’s security-focused news, F5 is introducing several enhancements, including F5 Insight for ADSP with increased observability across the platform, support for agentic AI-driven workloads, future-ready cryptographic capabilities, and a new straightforward packaging approach to F5 Distributed Cloud Services designed to simplify SaaS deployments and promote infrastructure convergence.
Modern organizations operate increasingly complex IT environments where applications are spread across data centers, multiple clouds, and edge locations. F5 ADSP offers a trusted approach to navigate the challenges that distributed applications face in powering AI capabilities. With these latest enhancements, F5 ensures its platform can meet the critical demands of evolving application architectures.
“Most operations teams are stuck babysitting complexity they did not sign up for,” said Kunal Anand, Chief Product Officer at F5. “They have a dozen tools, a thousand alerts, and not enough signal. F5 ADSP collapses that mess into a platform. With F5 Insight, we turn scattered telemetry into a clear story and the next best action. Then we extend that foundation for agentic AI workloads and future-focused cryptography, because the infrastructure is changing, ready or not.”
F5 Insight: Laying the observability foundation for F5 ADSP
A critical new addition to the XOps component of F5’s ADSP, F5 Insight transforms the way organizations approach applications and infrastructure. For teams using F5 BIG-IP solutions, F5 Insight delivers comprehensive, end-to-end observability and analytics tailored to their environments by harnessing tools such as OpenTelemetry.
Key benefits include:
Unified visibility: Real-time monitoring and analytics across application and infrastructure layers address longstanding industry demand for comprehensive insights in hybrid and multicloud settings.
Actionable intelligence: Created with the benefit of decades of experience in application delivery and security, F5 Insight doesn’t just provide dashboards; it delivers operational clarity with impactful KPIs and visualizations, helping teams optimize application performance and holistically address potential issues before they affect users.
AI-driven proactive guidance: By leveraging Model Context Protocol (MCP) integration and support for popular large language models (LLMs), F5 Insight offers predictive analytics and generates operational narratives to guide teams in prioritizing actions and addressing vulnerabilities—all through natural language interactions. With this functionality, operational data becomes clear and actionable, improving efficiency and collaboration.
F5 Insight for ADSP is a flexible, customizable solution available as both self-managed software and a forthcoming SaaS model. It is now generally available for BIG-IP, with plans to extend capabilities to F5 NGINX and Distributed Cloud Services.
F5 BIG-IP v21.1: Future-ready modernization
Building on the BIG-IP v21.0 milestone release in late 2025, upcoming BIG-IP v21.1 software evolves F5’s ADSP to support today’s demanding applications and APIs. This release bolsters an already industry-leading feature set by introducing innovative new capabilities, including:
Enhanced post-quantum cryptography (PQC) readiness: BIG-IP v21.1 adds support for new NIST-compliant cryptographic ciphers, providing robust encryption against future quantum threats. Complementing this, F5 BIG-IP Zero Trust Access (formerly F5 BIG-IP Access Policy Manager) debuts quantum-resistant TLS/SSL VPN tunnelling for secure application access and data transmission.
Delivery, security, and access for AI workloads: The release improves the security and performance of AI workloads by adding MCP protection and session persistence capabilities. It also empowers agentic AI by enabling fast, automated, and secure access to necessary resources by utilizing the new Dynamic Client Registration (DCR) feature.
Advanced protection for modern APIs and traffic protocols: With BIG-IP v21.1, F5 web application firewall (WAF) solutions now safeguard modern APIs defined by the OpenAPI 3.1 specification against malicious threats, while blocking sophisticated attacks targeting HTTP/3 protocol traffic such as a cross-site scripting or SQL injection.
Continued BIG-IP TMOS software modernization: BIG-IP v21.1 further upgrades the control plane to improve overall system reliability and efficiency, while introducing a new, high performance declarative API—the BIG-IP Declarative API—to support automation in the most extensive and dynamic application environments.
General availability of BIG-IP v21.1 is currently targeted for the second quarter of calendar year 2026.
F5 NGINX: Agentic observability powered by MCP traffic visibility
As AI agents increasingly interact with applications and APIs to execute tasks autonomously, enterprises require visibility into how these agents access and consume services. F5 NGINX delivers real-time observability into AI-initiated traffic—providing DevOps, SRE, and platform teams with deep insights into agent behavior across both known and shadow AI activity. By parsing and inspecting MCP metadata directly in the traffic path, NGINX surfaces agent request patterns, latency, throughput, and error signals to improve monitoring and governance.
Because NGINX occupies a privileged position in the application traffic path, organizations can use a single gateway to observe and deliver application, API, and AI workloads. There is no need to introduce a separate AI gateway—reducing tool sprawl, simplifying operations, and enabling unified governance across modern workloads.
Agentic observability powered by MCP traffic visibility is generally available today in NGINX Open Source. Enterprise support and advanced capabilities are available through F5 NGINX Plus.
F5 Distributed Cloud Services: Simplified deployment
F5 has reimagined packaging for its Distributed Cloud Services, enabling a seamless buying experience and scalable adoption of F5 ADSP capabilities within a SaaS framework. The new starter packages, Essentials and Enterprise, both offer integrated services such as CDN and API security capabilities to align with modern business needs. These new packages simplify subscriptions while reducing friction and replacing dozens of SKUs with value-driven bundles.
These adjustments support F5’s vision of delivering SaaS solutions alongside traditional hardware, software, and managed services offerings, making the migration to a unified platform more seamless than ever for customers.
“F5 is addressing operational challenges while also enabling more effective AI application deployments and proactively preparing for future needs,” said Paul Nicholson, Research VP, Cloud and Datacenter Networks at IDC. “A key highlight is F5 Insight, which delivers the visibility and actionable intelligence customers require, with notable AI capabilities. Combined with MCP enhancements for AI applications and PQC support, F5 is meeting requirements for modern applications. Collectively, these advancements enable organizations to optimize operations, strengthen security, and scale across their environments.”
Supporting materials
Blog: Announcing F5 Insight for ADSP: Answering six critical questions
Blog: A sneak peek into F5 BIG-IP v21.1: AI security, PQC, and software enhancements
About F5
F5, Inc. (NASDAQ: FFIV) is the global leader that delivers and secures every app. Backed by three decades of expertise, F5 has built the industry’s premier platform—F5 Application Delivery and Security Platform (ADSP)—to deliver and secure every app, every API, anywhere: on-premises, in the cloud, at the edge, and across hybrid, multicloud environments. F5 is committed to innovating and partnering with the world’s largest and most advanced organizations to deliver fast, available, and secure digital experiences. Together, we help each other thrive and bring a better digital world to life.
For more information visit f5.com
Explore F5 Labs threat research at f5.com/labs
Follow to learn more about F5, our partners, and technologies:
Blog | LinkedIn | X | YouTube | Instagram | Facebook
F5, BIG-IP, and NGINX are trademarks, service marks, or tradenames of F5, Inc., in the U.S. and other countries. All other product and company names herein may be trademarks of their respective owners. References to third-party technologies, including OpenTelemetry, are for informational purposes only and do not imply endorsement, sponsorship, or affiliation.
Forward-looking statements
This press release contains forward-looking statements, including statements regarding the anticipated availability of certain products and releases, the intent to extend F5 Insight capabilities to additional platforms, and the development of future security, cryptographic, and AI-enabled features, which are subject to risks and uncertainties that could cause actual results to differ materially.
Source: F5, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260311021815/en/
Dan Sorensen
F5
(650) 228-4842
d.sorensen@f5.com
Holly Lancaster
We. Communications
(415) 547-7054
hlancaster@wecommunications.com
Original: F5 Strengthens Its Application Delivery and Security Platform to Simplify Operations and Accelerate Secure AI Adoption
US Market News
3月前
F5 Advances Enterprise Application Security for the AI and Post-quantum EraMarch 11, 2026 12:00 PM
Business Wire
New security innovations in the F5 Application Delivery and Security Platform unify AI-driven protection, zero trust access, and post-quantum readiness across hybrid multicloud environments
Today at AppWorld, F5 (NASDAQ: FFIV), the global leader in delivering and securing every app and API, unveiled new security capabilities that strengthen protection for AI-driven and modern applications. Integrated within the F5 Application Delivery and Security Platform (ADSP), the innovations unify intelligent threat protection, zero trust access controls, and crypto-agile architecture to help enterprises secure distributed applications and prepare for emerging post-quantum risks.
“Security teams do not need more alarms. They need fewer gaps,” said Kunal Anand, Chief Product Officer at F5. “ADSP closes the loop from finding risk to enforcing protection. That includes moving from identified AI model vulnerabilities to validated runtime guardrails, AI-powered risk scoring, and a practical path to zero trust and post-quantum readiness. The point is simple: move faster while reducing your threat landscape.”
AI-driven protection for modern threats
As organizations scale applications across data center, hybrid multicloud, and edge environments, they need faster, more intelligent responses to emerging threats. F5 addresses this through AI-powered protections in the F5 ADSP, automating risk-based web application firewall (WAF) capabilities that reduce operational overhead and improve threat detection, bridging the gaps between risk identification and mitigation.
New to the F5 ADSP, F5 AI Remediate closes a gap between identifying AI model vulnerabilities with F5 AI Red Team and enforcing validated runtime protections with F5 AI Guardrails. AI Remediate accelerates time to response by automating the creation, optimization, and validation of targeted guardrail packages, enabling security teams to put evidence-backed protections into production with human approval. As part of the ADSP, AI Remediate helps organizations reduce exposure quickly without disrupting live AI applications, eliminating repetitive tasks while supporting accountable AI adoption.
Additionally, the latest F5 Distributed Cloud WAF release introduces AI-powered risk scoring, transforming manual processes into automated protections. With outcome-based blocking policies, CISOs, SecOps, and NetOps teams can eliminate threats, reduce operational burden, and achieve rapid time to protection, all while maintaining low false positive rates through layered analysis. F5 Web Application and API Protection (WAAP) solutions such as this minimize reliance on signature-level exceptions and tedious tuning for enterprises with significant application portfolios. Whether safeguarding on-premises hardware or virtual systems, cloud-based SaaS applications, or containerized deployments, F5 enables consistent, enterprise-grade security across ecosystems.
Security in the age of agentic AI
F5 is introducing powerful capabilities within F5 Distributed Cloud Bot Defense to address the emerging challenges of AI-driven automation. These enhanced features combat analytics distortion, automated abuse, and impersonation attempts created by AI agents—threats that increasingly impact both users and the business.
Within the F5 ADSP, Distributed Cloud Bot Defense now offers deeper visibility across application traffic, clearly distinguishing humans, bots, and AI agents. Only trusted, verifiable AI agents are allowed to interact with applications, ensuring malicious or ungoverned activity is blocked while enabling safe, controlled agentic commerce. With unified governance and consistent policy controls for human, bot, and AI agent interactions, these new capabilities help organizations safeguard revenue from harmful automation and confidently participate in the emerging agentic economy.
ADSP also now integrates F5 Distributed Cloud Web App Scanning with F5 BIG-IP Advanced WAF, delivering scalable, automated vulnerability detection for BIG-IP customers. Security teams can identify threats through automated penetration testing and rapidly deploy precise virtual patches. This integration streamlines vulnerability detection and exploit response, reducing time to protection. This approach showcases F5's platform advantage: unified security across hardware, software, and SaaS, offering unmatched flexibility to protect applications and APIs in any environment.
Unified zero trust across hybrid multicloud environments
F5 is evolving BIG-IP Access Policy Manager (APM) into BIG-IP Zero Trust Access, emphasizing its zero trust application access (ZTAA) capabilities as part of the ADSP. Unlike SaaS-based zero trust network access (ZTNA) solutions, BIG-IP Zero Trust Access delivers hybrid zero trust operations with continual identity- and context-aware policy enforcement for modern, cloud, SaaS, and legacy applications. With per-request validation limiting horizontal movement, it strengthens application security across diverse access environments—supporting Identity Aware Proxy, SSL VPN, or IPsec VPN on a post-quantum cryptography (PQC)-ready platform. BIG-IP Zero Trust Access provides a seamless path to adopt zero trust principles while extending F5's ADSP vision.
New API discovery and security options within F5 Distributed Cloud API Security provide flexibility and control for modern, hybrid application environments. Enhancements include out-of-band discovery across multiple data planes, including BIG-IP, NGINX, Kong, and Apigee. Additionally, F5 is also introducing a deployable API security software solution for air-gapped, highly regulated, and cloud-constrained environments. This empowers organizations to maintain full API visibility and oversight without external connections, meeting compliance and data sovereignty requirements. By integrating seamlessly with existing architectures, F5 extends its ADSP vision with API discovery and security that fits any environment without disrupting application performance or workflows.
Building for what’s next: Crypto-agility and post-quantum readiness
F5 is reinforcing its leadership in PQC readiness by delivering a comprehensive, crypto-agile solution within its unified ADSP. By supporting hybrid TLS cipher groups, F5 provides immediate post-quantum security while maintaining compatibility with existing cryptographic workflows—ensuring a practical, standards-aligned approach to future-proofing against quantum threats. As organizations continue to prepare for the eventual arrival of Q-Day by attempting to address quantum-safe requirements, F5 proactively enables seamless quantum resistance today, minimizing long-term risks and supporting security across hybrid infrastructures.
Collectively, F5’s latest security advances deliver on the ADSP promise of seamless application delivery and robust cybersecurity across any deployment scenario. Enterprises benefit from taking a unified platform approach to meeting their security needs.
According to Gartner®, “Organizations should start by evaluating platform solutions first, and many will find that they need to combine a CDN, WAF or API threat protection solution with an API gateway. Again, the key is to look for existing platforms that can be extended or new platforms that offer significant combined capabilities across protection categories. This approach minimizes the number of moving parts and prevents ‘proxy overload,’ which can lead to excessive performance and availability risk.”1
With F5’s platform-based approach, enterprises gain extended choice to meet their users where they operate, securing applications across hybrid cloud, multicloud, edge, or on-premises ecosystems—all while reducing complexity and time to action. Further details are available in an additional press release focused on the F5 ADSP.
Supporting materials
Blog: F5 AI Remediate: Closing the AI security gap
Blog: API security without compromise: Introducing flexible new discovery options with F5 API security
Blog: Hello, F5 BIG-IP Zero Trust Access
Blog: F5 extends NIST-compliant PQC cipher support
About F5
F5, Inc. (NASDAQ: FFIV) is the global leader that delivers and secures every app. Backed by three decades of expertise, F5 has built the industry’s premier platform—F5 Application Delivery and Security Platform (ADSP)—to deliver and secure every app, every API, anywhere: on-premises, in the cloud, at the edge, and across hybrid, multicloud environments. F5 is committed to innovating and partnering with the world’s largest and most advanced organizations to deliver fast, available, and secure digital experiences. Together, we help each other thrive and bring a better digital world to life.
For more information visit f5.com
Explore F5 Labs threat research at f5.com/labs
Follow to learn more about F5, our partners, and technologies:
Blog | LinkedIn | X | YouTube | Instagram | Facebook
F5, BIG-IP, and NGINX are trademarks, service marks, or tradenames of F5, Inc., in the U.S. and other countries. All other product and company names herein may be trademarks of their respective owners.
Gartner is a trademark of Gartner, Inc. and/or its affiliates.
[1] Gartner, Implement Effective Application and API Security Controls, April 10, 2025
###
Source: F5, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260311660169/en/
Dan Sorensen
F5
(650) 228-4842
d.sorensen@f5.com
Holly Lancaster
We. Communications
(415) 547-7054
hlancaster@wecommunications.com
Original: F5 Advances Enterprise Application Security for the AI and Post-quantum Era
US Market News
4月前
F5 Reports Strong First Quarter Results with 7% Revenue Growth Including 11% Product GrowthJanuary 27, 2026 9:05 PM
Business Wire
F5, Inc. (NASDAQ: FFIV), the global leader in delivering and securing every app and API, today announced financial results for its first quarter fiscal year 2026 ended December 31, 2025.
“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,” said François Locoh-Donou, F5’s President and CEO. “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.”
First Quarter Performance Summary
First quarter fiscal year 2026 revenue totaled $822 million, representing 7% growth compared with $766 million in the first quarter of fiscal year 2025. Systems revenue of $218 million grew 37% from the year-ago period while software revenue of $192 million was down 8% against strong results in the year-ago period. Global services revenue of $412 million grew 4% from the year-ago period.
GAAP gross profit for the first quarter of fiscal year 2026 was $671 million, representing GAAP gross margin of 81.5%. This compares with GAAP gross profit of $626 million in the year-ago period, which represented GAAP gross margin of 81.7%. Non-GAAP gross profit for the first quarter of fiscal year 2026 was $689 million, representing non-GAAP gross margin of 83.8%. This compares with non-GAAP gross profit of $643 million in the year-ago period, which represented non-GAAP gross margin of 83.9%.
GAAP income from operations for the first quarter of fiscal year 2026 was $214 million, representing GAAP operating margin of 26.0%. This compares with GAAP income from operations of $205 million in the year-ago period, which represented GAAP operating margin of 26.8%. Non-GAAP income from operations for the period was $314 million, representing non-GAAP operating margin of 38.2%. This compares to non-GAAP income from operations of $286 million in the year-ago period, which represented non-GAAP operating margin of 37.4%.
GAAP net income for the first quarter of fiscal year 2026 was $180 million, or $3.10 per diluted share compared to $166 million, or $2.82 per diluted share, in the first quarter of fiscal year 2025. Non-GAAP net income for the first quarter of fiscal year 2026 was $259 million, or $4.45 per diluted share, compared to $227 million, or $3.84 per diluted share, in the first quarter of fiscal year 2025.
Performance Summary Tables
GAAP Measures
Non-GAAP Measures
($ in millions except EPS)
Q1 FY2026
Q1 FY2025
($ in millions except EPS)
Q1 FY2026
Q1 FY2025
Revenue
$
822
$
766
Revenue
$
822
$
766
Gross profit
$
671
$
626
Gross profit
$
689
$
643
Gross margin
81.5
%
81.7
%
Gross margin
83.8
%
83.9
%
Operating profit
$
214
$
205
Operating profit
$
314
$
286
Operating margin
26.0
%
26.8
%
Operating margin
38.2
%
37.4
%
Net income
$
180
$
166
Net income
$
259
$
227
EPS
$
3.10
$
2.82
EPS
$
4.45
$
3.84
A reconciliation of GAAP to non-GAAP measures is included with the attached financial statements. Additional information about non-GAAP financial information is included in this release.
Business Outlook
F5 raised its outlook for its fiscal year 2026, guiding for revenue growth in a range of 5% to 6%, up from 0% to 4% previously. The Company expects to deliver non-GAAP operating margin in a range of 34% to 35%, up from 33.5% to 34.5% previously. Finally, F5 expects non-GAAP earnings per share in a range of $15.65 to $16.05, up from $14.50 to $15.50 previously.
For the second quarter of fiscal year 2026, F5 is guiding to revenue in the range of $770 million to $790 million, with non-GAAP earnings in the range of $3.34 to $3.46 per diluted share.
All forward-looking non-GAAP measures included in the Company’s business outlook exclude estimates for amortization of intangible assets, share-based compensation expenses, significant effects of tax legislation and judicial or administrative interpretation of tax regulations (including the impact of income tax reform), non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions or divestitures, acquisition-related charges and write-downs, cyber incident costs, restructuring charges, facility exit costs, or other non-recurring charges that may occur in the period. F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding U.S. generally accepted accounting principles or GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.
Live Webcast and Conference Call
F5 will host a live webcast to review its financial results and outlook today, January 27, 2026, at 4:30 pm ET. Open to the public, the live webcast, supplemental financial information, and earnings slides are accessible from the investor relations page of F5.com. To participate in the live call via telephone in the U.S. and Canada, dial +1 (877) 407-0312. Outside the U.S. and Canada, dial +1 (201) 389-0899. Please call at least five minutes prior to the call start time. The webcast replay will be archived on the investor relations portion of F5’s website.
Forward Looking Statements This press release contains forward-looking statements including, among other things, that F5’s strong performance underscores its alignment with durable market demand drivers including the shift to hybrid multicloud architectures, enterprise adoption of AI, and the growing need for converged platforms, that F5’s six consecutive quarters of double-digit product revenue growth demonstrates the continued value F5 is delivering to customers, the Company’s future financial performance including revenue growth, earnings growth, future customer demand, and the performance and benefits of the Company's products. These, and other statements that are not historical facts, are forward-looking statements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors. Such forward-looking statements involve risks and uncertainties, as well as assumptions and other factors that, if they do not fully materialize or prove correct, could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: customer acceptance of offerings; disruptions to the global supply chain resulting in inability to source required parts for F5’s products or the ability to only do so at greatly increased prices thereby impacting our revenues and/or margins; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; F5’s ability to successfully integrate acquired businesses’ products with F5 technologies; the ability of F5’s sales professionals and distribution partners to sell new solutions and service offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into F5’s markets, and new product and marketing initiatives by our competitors; increased sales discounts; the business impact of the acquisitions and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of completion of acquisitions; uncertain global economic conditions which may result in reduced customer demand for our products and services and changes in customer payment patterns; litigation involving patents, intellectual property, shareholder and other matters, and governmental investigations; potential security flaws in the Company’s networks, products or services; cybersecurity attacks on its networks, products or services; natural catastrophic events; a pandemic or epidemic; F5’s ability to sustain, develop and effectively utilize distribution relationships; F5’s ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5’s ability to expand in international markets; the unpredictability of F5’s sales cycle; the ability of F5 to execute on its share repurchase program including the timing of any repurchases; future prices of F5’s common stock; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K and other documents that we may file or furnish from time to time, which could cause actual results to vary from expectations. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in F5’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. All forward-looking statements in this press release are based on information available as of the date hereof and qualified in their entirety by this cautionary statement. F5 assumes no obligation to revise or update these forward-looking statements.
GAAP to non-GAAP Reconciliation
F5’s management evaluates and makes operating decisions using various operating measures. These measures are generally based on the revenues of its products, services operations, and certain costs of those operations, such as cost of revenues, research and development, sales and marketing and general and administrative expenses. One such measure is GAAP net income excluding, as applicable, stock-based compensation, amortization and impairment of purchased intangible assets, facility-exit costs, acquisition-related charges, net of taxes, cyber incident costs, restructuring charges, and certain non-recurring tax expenses and benefits, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. This measure of non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the Company would accrue if it used non-GAAP results instead of GAAP results to calculate the Company’s tax liability.
The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are outlined below:
Stock-based compensation. Stock-based compensation consists of expense for stock options, restricted stock, and employee stock purchases through the Company’s Employee Stock Purchase Plan. Although stock-based compensation is an important aspect of the compensation of F5’s employees and executives, management believes it is useful to exclude stock-based compensation expenses to better understand the long-term performance of the Company’s core business and to facilitate comparison of the Company’s results to those of peer companies.
Amortization and impairment of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. On a non-recurring basis, when certain events or circumstances are present, management may also be required to write down the carrying value of its purchased intangible assets and recognize impairment charges. Management does not believe these charges accurately reflect the performance of the Company’s ongoing operations; therefore, they are not considered by management in making operating decisions. However, investors should note that the use of intangible assets contributed to F5’s revenues earned during the periods presented and will contribute to F5’s future period revenues as well.
Facility-exit costs. F5 has incurred certain non-recurring right-of-use asset impairment charges, and other related recurring costs in connection with the exit of its leased facilities. These charges are not representative of the ongoing activity or costs to the business. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.
Acquisition-related charges, net. F5 does not acquire businesses on a predictable cycle and the terms and scope of each transaction can vary significantly and are unique to each transaction. F5 excludes acquisition-related charges from its non-GAAP financial measures to provide a useful comparison of the Company’s operating results to prior periods and to its peer companies. Acquisition-related charges consist of planning, execution and integration costs incurred directly as a result of an acquisition.
Cyber incident costs: F5 has incurred certain non-recurring expenses in connection with the investigation and remediation of the Cyber Incident. Management believes it is useful to exclude these expenses as they are not representative of our ongoing operations and to facilitate comparison of the Company’s historical results and to those of peer companies.
Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP financial statements, primarily related to workforce reductions and costs associated with exiting facility-lease commitments. F5 excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.
Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the Company’s core business operations and facilitates comparisons to the Company’s historical operating results. Although F5’s management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management’s reliance on this measure is limited because items excluded from such measures could have a material effect on F5’s earnings and earnings per share calculated in accordance with GAAP. Therefore, F5’s management will use its non-GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the Company’s core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP.
F5 believes that presenting its non-GAAP measures of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the Company’s core business and is used by management in its own evaluation of the Company’s performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the Company provides investors these supplemental measures since, with reconciliation to GAAP, it may provide additional insight into the Company’s operational performance and financial results.
For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section in our attached Condensed Consolidated Income Statements entitled “Non-GAAP Financial Measures.”
About F5
F5, Inc. (NASDAQ: FFIV) is the global leader that delivers and secures every app. Backed by three decades of expertise, F5 has built the industry’s premier platform—F5 Application Delivery and Security Platform (ADSP)—to deliver and secure every app, every API, anywhere: on-premises, in the cloud, at the edge, and across hybrid, multicloud environments. F5 is committed to innovating and partnering with the world’s largest and most advanced organizations to deliver fast, available, and secure digital experiences. Together, we help each other thrive and bring a better digital world to life.
For more information visit f5.com
Explore F5 Labs threat research at f5.com/labs
Follow to learn more about F5, our partners, and technologies: Blog | LinkedIn | X | YouTube | Instagram | Facebook
F5 is a trademark, service mark, or tradename of F5, Inc., in the U.S. and other countries.
SOURCE: F5, Inc.
F5, Inc.
Consolidated Balance Sheets
(unaudited, in thousands)
December 31, 2025
September 30, 2025
Assets
Current assets
Cash and cash equivalents
$
1,199,734
$
1,344,273
Accounts receivable, net of allowances of $2,882 and $2,877
493,627
414,433
Inventories
79,895
77,229
Other current assets
742,163
682,766
Total current assets
2,515,419
2,518,701
Property and equipment, net
157,100
156,947
Operating lease right-of-use assets
191,350
185,601
Long-term investments
17,965
15,693
Deferred tax assets
456,184
446,388
Goodwill
2,443,882
2,443,882
Other assets, net
509,782
552,280
Total assets
$
6,291,682
$
6,319,492
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable
$
60,659
$
83,972
Accrued liabilities
305,188
315,383
Deferred revenue
1,253,071
1,213,226
Total current liabilities
1,618,918
1,612,581
Deferred tax liabilities
1,911
1,921
Deferred revenue, long-term
808,590
786,011
Operating lease liabilities, long-term
234,862
230,749
Other long-term liabilities
89,137
96,231
Total long-term liabilities
1,134,500
1,114,912
Commitments and contingencies
Shareholders’ equity
Preferred stock, no par value; 10,000 shares authorized, no shares issued and outstanding
-
-
Common stock, no par value; 200,000 shares authorized, 56,887 and 57,684
shares issued and outstanding
5,870
42,023
Accumulated other comprehensive loss
(18,195
)
(18,324
)
Retained earnings
3,550,589
3,568,300
Total shareholders' equity
3,538,264
3,591,999
Total liabilities and shareholders' equity
$
6,291,682
$
6,319,492
F5, Inc.
Consolidated Income Statements
(unaudited, in thousands, except per share amounts)
Three Months Ended
December 31,
2025
2024
Net revenues
Products
$
410,283
$
368,497
Services
412,182
397,992
Total
822,465
766,489
Cost of net revenues
Products
92,271
82,836
Services
59,514
57,674
Total
151,785
140,510
Gross profit
670,680
625,979
Operating expenses
Sales and marketing
224,777
206,035
Research and development
141,161
130,518
General and administrative
90,598
73,023
Restructuring charges
(43
)
11,321
Total
456,493
420,897
Income from operations
214,187
205,082
Other income, net
8,735
3,962
Income before income taxes
222,922
209,044
Provision for income taxes
42,868
42,599
Net income
$
180,054
$
166,445
Net income per share - basic
$
3.12
$
2.85
Weighted average shares - basic
57,650
58,305
Net income per share - diluted
$
3.10
$
2.82
Weighted average shares - diluted
58,164
59,058
F5, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Three Months Ended
December 31,
2025
2024
Operating activities
Net income
$
180,054
$
166,445
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation
60,005
57,908
Depreciation and amortization
24,611
22,666
Non-cash operating lease costs
7,520
7,943
Deferred income taxes
(9,593
)
(11,944
)
Other
(1,118
)
1,623
Changes in operating assets and liabilities:
Accounts receivable
(79,409
)
(98,188
)
Inventories
(2,666
)
3,139
Other current assets
(58,606
)
(57,069
)
Other assets
28,641
(34,544
)
Accounts payable and accrued liabilities
(44,691
)
6,554
Deferred revenue
62,424
148,300
Lease liabilities
(7,961
)
(10,051
)
Net cash provided by operating activities
159,211
202,782
Investing activities
Purchases of investments
(2,180
)
(1,900
)
Sales of investments
1,343
-
Purchases of property and equipment
(9,720
)
(8,073
)
Net cash used in investing activities
(10,557
)
(9,973
)
Financing activities
Proceeds from the exercise of stock options and
purchases of stock under employee stock purchase plan
22,844
23,695
Payments for repurchase of common stock, including excise taxes
(301,095
)
(125,010
)
Taxes paid related to net share settlement of equity awards
(14,770
)
(13,368
)
Net cash used in financing activities
(293,021
)
(114,683
)
Net (decrease) increase in cash, cash equivalents and restricted cash
(144,367
)
78,126
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(131
)
(3,568
)
Cash, cash equivalents and restricted cash, beginning of period
1,346,368
1,078,340
Cash, cash equivalents and restricted cash, end of period
$
1,201,870
$
1,152,898
Supplemental disclosures of cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities
$
10,359
$
10,851
Supplemental disclosures of non-cash activities
Right-of-use assets obtained in exchange for lease obligations
$
13,857
$
35,084
F5, Inc.
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands, except percentages and per share amounts)
Three Months Ended
December 31,
2025
2024
Net revenues
$
822,465
$
766,489
Gross profit and gross margin:
GAAP gross profit and gross margin
$
670,680
81.5
%
$
625,979
81.7
%
Adjustments to gross profit and gross margin:
Stock-based compensation
$
6,826
0.8
%
$
7,400
1.0
%
Amortization and impairment of purchased intangible assets
10,640
1.3
%
9,284
1.2
%
Facility-exit costs
92
0.0
%
124
0.0
%
Cyber incident costs
876
0.1
%
-
-
Non-GAAP gross profit and gross margin
$
689,114
83.8
%
$
642,787
83.9
%
Income from operations and operating margin:
GAAP income from operations and operating margin
$
214,187
26.0
%
$
205,082
26.8
%
Adjustments to income from operations and operating margin:
Stock-based compensation
$
60,005
7.3
%
$
57,908
7.6
%
Amortization and impairment of purchased intangible assets
11,452
1.4
%
10,143
1.3
%
Facility-exit costs
931
0.1
%
1,220
0.2
%
Acquisition-related charges
9,817
1.2
%
691
0.1
%
Cyber incident costs
17,488
2.1
%
-
-
Restructuring charges
(43
)
0.0
%
11,321
1.5
%
Non-GAAP income from operations and operating margin
$
313,837
38.2
%
$
286,365
37.4
%
Net income:
GAAP net income
$
180,054
$
166,445
Adjustments to net income:
Stock-based compensation
$
60,005
$
57,908
Amortization and impairment of purchased intangible assets
11,452
10,143
Facility-exit costs
931
1,220
Acquisition-related charges
9,817
691
Cyber incident costs
17,488
-
Restructuring charges
(43
)
11,321
Tax effects related to above items
(20,941
)
(20,756
)
Non-GAAP net income
$
258,763
$
226,972
Net income per share - diluted:
GAAP net income per share — diluted
$
3.10
$
2.82
Adjustments to GAAP net income per share — diluted:
Stock-based compensation
$
1.03
$
0.98
Amortization and impairment of purchased intangible assets
0.20
0.17
Facility-exit costs
0.02
0.02
Acquisition-related charges
0.17
0.01
Cyber incident costs
0.30
-
Restructuring charges
(0.00
)
0.19
Tax effects related to above items
(0.36
)
(0.35
)
Non-GAAP net income per share — diluted
$
4.45
$
3.84
Weighted average shares — diluted
58,164
59,058
Note: Numbers and percentages are rounded for presentation purposes and may not foot.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260127941839/en/
Investors
Suzanne DuLong
+1 (206) 272-7049
s.dulong@f5.com
Media
Rob Gruening
+1 (206) 272-6208
r.gruening@f5.com
Original: F5 Reports Strong First Quarter Results with 7% Revenue Growth Including 11% Product Growth
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