F5 Reports Q4 Results & Authorizes Incremental $1.5B Share Repurchase Program

Executive Summary

On October 27, 2026, F5, Inc. filed a Form 8-K reporting its fourth-quarter and fiscal year 2026 financial results (Item 2.02) and announcing an incremental $1.5 billion share repurchase program authorization approved by the Board of Directors on October 23, 2026 (Item 8.01).

Key Highlights

1. Capital Allocation & Share Repurchases

• Authorization Amount: Incremental $1.5 billion approved for common stock repurchases.
• Existing Program Capacity: Adds to the $322.4 million remaining under the previous authorization, bringing total repurchase capacity to over $1.82 billion.
• Execution: Repurchases may be executed in open market transactions, accelerated repurchase programs, or private transactions.

2. Fourth Quarter FY26 Financial Performance

• Total Revenue: $917 million, representing a 13% increase year-over-year compared to $810 million in Q4 FY25.
• Product Revenue: $510 million (+23% YoY), driven by:
  • Systems revenue: $239 million (+29% YoY)
  • Software revenue: $271 million (+19% YoY)
• Services Revenue: $408 million (+3% YoY).
• Margins: GAAP gross margin stood at 82.2% (flat YoY), while non-GAAP gross margin was 84.0% (vs. 84.3% YoY). GAAP operating margin was 23.1% (vs. 25.4%), and non-GAAP operating margin was 33.7% (vs. 37.0%).
• Net Income & Diluted EPS:
  • GAAP Net Income: $186 million, or $3.23 per diluted share (compared to $190 million, or $3.26 per diluted share in Q4 FY25).
  • Non-GAAP Net Income: $255 million, or $4.42 per diluted share (compared to $257 million, or $4.39 per diluted share in Q4 FY25).

3. Full-Year FY26 Summary

• Annual Revenue: $3,417 million, up 11% compared to $3,088 million in FY25.
• Product Revenue: $1,793 million, up 19% YoY.
• GAAP Diluted EPS: $12.52 (up from $11.80 in FY25).
• Non-GAAP Diluted EPS: $17.49 (up from $15.81 in FY25).

4. Business Outlook

• Full-Year FY27 Guidance:
  • Revenue growth expected between 8% and 9%.
  • Non-GAAP diluted EPS expected in the range of $18.00 to $18.30.
• Q1 FY27 Guidance:
  • Revenue projected in the range of $875 million to $895 million.
  • Non-GAAP diluted EPS projected between $4.25 and $4.37.