F5, Inc.
F5, Inc. Q2 FY26 Results — Earnings Call Analysis
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
What the Q2 FY26 call signalled
1 of 3 strong
The short version
- Strong growth visibility two quarters out into next year, driven by refresh cycles and expansion at refresh time. - FY ’26 revenue growth raised to 7%–8%, up from previous 5%–6% outlook. - Mid-single-digit software revenue growth and double-digit systems revenue growth expected for FY ’26. - Low single-digit services revenue growth anticipated for FY ’26. - Q3 revenue expected between $820M to $840M, approx.
From F5, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Revenue & Sales Performance
- Strong growth visibility two quarters out into next year, driven by refresh cycles and expansion at refresh time.
- Expect growth opportunities in systems revenue for fiscal 2027 due to current strong refresh momentum and new use cases (e.g., AI, data sovereignty).
- Software business primarily subscription-based (90% subscription), with slower growth this year expected to accelerate next year due to a larger renewal base.
- FY 2026 revenue growth guidance raised to 7-8% (up from 5-6%), with mid-single-digit software growth, double-digit systems growth, and low single-digit services growth.
- AI-related sales grew 200% year-over-year, with ~$50 million sales in H1 FY 2026 and nearly 100 AI customers, indicating strong AI-driven demand.
2 more points management made on revenue & sales performance
Profitability & Margins
See what F5, Inc. said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Q2 CapEx was $18 million, indicating ongoing capital investment.
- The company is investing continuously and innovating in systems and software, viewing this as critically important.
- Focus on hybrid multicloud architectures and AI-powered security solutions shows strategic investment in emerging technology areas.
- Planning for new ranges of appliances and systems is underway, although specifics were not disclosed.
- Investments target hybrid multicloud capabilities, expanding security solutions including AI-powered WAF, Bot Defense, and runtime security.
2 more points management made on capital expenditure plans
Fundraising & Capital Structure
See what F5, Inc. said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- Deferred revenue was $2.12 billion at quarter end, up 10% year-over-year, primarily tied to the services business and maintenance renewals.
- Strength in deferred revenue reflects multi-year maintenance renewals, with some customers accelerating renewals ahead of anticipated price increases.
- Product backlog does not show up in deferred revenue; no indication of significant product backlog buildup currently.
- Supply availability for near term is good, with proactive measures taken since mid-FY ’25 to secure memory and components for higher build forecasts and demand upside.
- Longer-term visibility (4-5 quarters out) is less certain but build forecasts are aligned with high-end expectations for the systems business.
2 more points management made on order book & pipeline
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Frequently Asked Questions
What were F5, Inc. Q2 FY26 results?
- Strong growth visibility two quarters out into next year, driven by refresh cycles and expansion at refresh time. - FY ’26 revenue growth raised to 7%–8%, up from previous 5%–6% outlook. - Mid-single-digit software revenue growth and double-digit systems revenue growth expected for FY ’26. - Low single-digit services revenue growth anticipated for FY ’26. - Q3 revenue expected between $820M to $840M, approx.
What is F5, Inc. share price analysis?
F5, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 32.6 with a market cap of $21,633. Investors should review the full earnings analysis for detailed insights.
Is F5, Inc. planning capital expenditure?
- Q2 CapEx was $18 million, indicating ongoing capital investment.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.