F5 Revenue Rises to $917 Million as Product Sales Grow 23 Percent and Board Adds $1.5 Billion Buyback

F5 reported fourth quarter revenue of $917 million on Tuesday, up 13 percent from $810 million a year earlier, as product revenue grew 23 percent. The results cover the quarter ended September 30, 2026, the final quarter of the company's fiscal 2026 year.

Product revenue totaled $510 million, up 23 percent from $414 million a year earlier. Systems revenue was $239 million, up 29 percent, and software revenue was $271 million, up 19 percent. Services revenue was $408 million, up 3 percent.

GAAP net income was $186 million, or $3.23 per diluted share, compared with $190 million, or $3.26, a year earlier. Non-GAAP net income was $255 million, or $4.42 per diluted share, compared with $257 million, or $4.39, a year earlier.

The non-GAAP earnings figure beat the consensus estimate of $4.26 by $0.16. Revenue also beat the analyst estimate of $884.03 million, with reported revenue put at $917.43 million in the consensus comparison.

A full year of product growth

Chairman, president and chief executive Francois Locoh-Donou said the quarter closed out an exceptional fiscal year. "Q4 closed out an exceptional fiscal year. In the quarter, we delivered 23% product revenue growth driving 13% total revenue growth year over year," he said in the release.

He also pointed to a longer run of product growth. "Nine consecutive quarters of double-digit product revenue growth reflect F5's expanding strategic role as our customers navigate hybrid multicloud complexity, an intensifying threat landscape, and a rapidly evolving AI-driven world," Locoh-Donou said.

For the full fiscal year, revenue was $3,417 million, compared with $3,088 million in fiscal 2025. GAAP net income for the year was $722 million and non-GAAP net income was $1,009 million.

Guidance and a larger buyback

F5 guided fiscal 2027 revenue growth of 8 percent to 9 percent and non-GAAP earnings of $18.00 to $18.30 per share. For the first quarter of fiscal 2027, it guided revenue of $875 million to $895 million and non-GAAP earnings of $4.25 to $4.37 per share.

The board authorised an additional $1.5 billion for the share repurchase program. The amount is incremental to the $322 million remaining under the existing program.

Seeking Alpha reported that F5 shares fell slightly after the results, as the fiscal 2027 revenue guidance showed a slight deceleration. The stock had closed Tuesday down $2.24 at $459.36 in regular trading before the release.

For investors, the quarter was a beat on both revenue and adjusted earnings, led by systems and software. The guidance for the new fiscal year still points to growth, but at a slower rate than the product surge that drove the fourth quarter.