| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 27 | 32.5x | 17.8x | Bottom tier | |
Growth | 64 | 9.4% | 7.1% | Around median | |
Quality | 93 | 16.9% | 4.5% | Top tier | |
Safety | 84 | — | 2.6x | Top tier | |
Capital Return | 79 | — | 2.12% | Top tier | |
Momentum | 90 | 30.3% | 2.9% | Top tier | |
Sentiment | 45 | 9 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
F5, Inc. provides application delivery and security solutions across on-premises, cloud, and hybrid multi-cloud environments, positioning its platform in front of applications and APIs to manage and protect traffic. Its revenue model is split among software systems, hardware systems, and support services; in Q3 fiscal 2026, product revenue accounted for 54% of total revenue and services for 46%, while 69% of revenue came from recurring sources. Its portfolio includes BIG-IP, Distributed Cloud Services, NGINX, and F5 Insight, alongside AI Guardrails and AI Red Team for protecting AI applications and models.
In Q3 fiscal 2026, revenue rose 11% year over year to $865 million, exceeding the high end of the company’s guidance, supported by 19% growth in product revenue to $463 million, compared with 3% growth in services to $402 million. Systems revenue reached $240 million, up 32%, and software revenue reached $223 million, up 7%; within software, subscriptions totaled $201 million, grew 9%, and accounted for 90% of software revenue, while perpetual licenses declined 4% to $22 million.
F5 recorded a GAAP gross margin of 82.2% and an operating margin of 24.7% in Q3 fiscal 2026, with net income of $208 million and earnings per share of $3.62. On a non-GAAP basis, gross margin was 84.2% and operating margin was 35%, while net income reached $272 million and earnings per share reached $4.73, up 14% year over year. The company generated $316 million in operating cash flow and $281 million in free cash flow, and ended the period with $1.63 billion in cash and investments and $2.19 billion in deferred revenue, up 12% year over year.
The average analyst price target is $416.6, approximately 4% below the upper end of the 52-week range of $435, while the target range extends from $300 to $475 and is accompanied by a neutral consensus. This dispersion reflects a balance between the increase in fiscal 2026 guidance and accelerating systems and AI growth, versus the cyclicality of the replacement cycle and uncertainty regarding fiscal 2027 margins; a reliable comparison using an earnings multiple cannot be made because the data do not provide a specific multiple.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue rose 11% to $865 million, driven by 19% growth in product revenue to $463 million. Systems revenue jumped 32% to $240 million, while software grew 7% to $223 million and services grew 3% to $402 million. Management linked this performance to the iSeries replacement cycle, capacity expansion, digital sovereignty, competitive displacements, and increased AI traffic across on-premises and hybrid architectures.
F5 targets three direct use cases: AI data delivery, runtime AI security, and AI factory load balancing. The cumulative number of customers for these use cases rose 50% in Q3 fiscal 2026, and the number of AI security customers doubled during the period, after direct revenue had surpassed $50 million. Products include AI Guardrails, AI Red Team, BIG-IP Next for Kubernetes, Distributed Cloud Services, and NGINX, in addition to the discovery capabilities added through the SurePath AI acquisition.
F5 launched AI-powered WAF in Q2 fiscal 2026 as part of Distributed Cloud WAF. By Q3 fiscal 2026, it had been adopted by 15% of the product’s customers, and 75% of adopters were running it in blocking mode. The company says the multilayer engine evaluates the intent and risk of each request, and financial customers have used it to intercept zero-day attacks and accelerate virtual patching.
Automated analysis for informational purposes only — not investment advice.
The company expects revenue between $870 million and $890 million in Q4 fiscal 2026, with year-over-year growth of slightly less than 9% at the midpoint. It expects a non-GAAP gross margin between 83% and 84% and non-GAAP earnings per share between $4.14 and $4.26 for the period. For fiscal 2026, it raised its revenue growth outlook to 9%–10% and non-GAAP earnings per share to $17.21–$17.33, with a non-GAAP operating margin between 34.5% and 35.5%.
Management confirmed that part of the systems growth in Q3 fiscal 2026 was due to the iSeries replacement cycle, making it cyclical and not an expectation for a sustained 32% growth rate. In contrast, F5 sees longer-term drivers including digital sovereignty, workload repatriation to data centers, AI-related performance requirements, tool consolidation, and competitive displacements. It also said capacity expansion during and beyond upgrades was strong, but its longer-term guidance was for single-digit hardware growth rather than a continuation of a rate above 30%.
The first risk is a slowdown in systems growth after the iSeries replacement cycle fades, particularly because hardware was the fastest-growing driver in Q3 fiscal 2026. The second risk is the prices of memory, SSD units, and other components; therefore, F5 did not update its previous fiscal 2027 margin outlook of 80%–82% despite the improved Q4 fiscal 2026 outlook. APAC revenue also declined 11%, and software growth remained at 7%, while the neutral analyst consensus and wide target range between $300 and $475 indicate meaningful disagreement over the sustainability of performance.
