Revenue growth has recovered to 11.0% in 2026Q2, though operating margins remain sensitive to fluctuations, ranging between 20.5% and 26.8% over the last ten quarters.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 |
|---|
| Sales/Revenue | 3.22B | 3.09B | 2.82B | 2.81B | 2.7B | 2.6B | 2.35B | 2.24B | 2.16B | 2.09B | 2B | 1.92B | 1.73B | 1.48B | 1.38B | 1.15B | 881.97M | 653.08M | 650.17M | 525.67M | 394.05M | 281.41M | 171.19M | 115.89M | 108.27M | 107.37M | 108.64M | 27.8M | 4.8M |
| Revenue Growth % | 9.69% | 9.66% | 0.1% | 4.35% | 3.55% | 10.74% | 4.83% | 3.75% | 3.41% | 4.76% | 3.92% | 10.84% | 16.93% | 7.56% | 19.57% | 30.6% | 35.05% | 0.45% | 23.69% | 33.4% | 40.03% | 64.38% | 47.71% | 7.05% | 0.84% | -1.18% | 290.81% | 479.17% | - |
| Cost of Goods Sold | 583.74M | 573.98M | 557.65M | 593.31M | 539.63M | 493.15M | 407.89M | 356.58M | 361.48M | 353.49M | 337.2M | 332.26M | 309.96M | 253.05M | 236.17M | 208M | 171.95M | 142.73M | 149.02M | 118.32M | 88.15M | 65.18M | 39.4M | 26.91M | 30.48M | 45.51M | 30.24M | 6.6M | 1.1M |
| COGS % of Revenue | - | 18.59% | 19.8% | 21.09% | 20.02% | 18.94% | 17.35% | 15.9% | 16.72% | 16.91% | 16.9% | 17.31% | 17.9% | 17.08% | 17.15% | 18.06% | 19.5% | 21.85% | 22.92% | 22.51% | 22.37% | 23.16% | 23.01% | 23.21% | 28.15% | 42.38% | 27.83% | 23.74% | 22.92% |
| Gross Profit | 2.64B | 2.51B | 2.26B | 2.22B | 2.16B | 2.11B | 1.94B | 1.89B | 1.8B | 1.74B | 1.66B | 1.59B | 1.42B | 1.23B | 1.14B | 943.83M | 710.02M | 510.35M | 501.15M | 407.34M | 305.9M | 216.23M | 131.79M | 88.99M | 77.79M | 61.86M | 78.41M | 21.2M | 3.7M |
| Gross Margin % | 81.9% | 81.41% | 80.2% | 78.91% | 79.98% | 81.06% | 82.65% | 84.1% | 83.28% | 83.09% | 83.1% | 82.69% | 82.1% | 82.92% | 82.85% | 81.94% | 80.5% | 78.15% | 77.08% | 77.49% | 77.63% | 76.84% | 76.99% | 76.78% | 71.85% | 57.62% | 72.17% | 76.26% | 77.08% |
| Gross Profit Growth % | - | 11.32% | 1.74% | 2.95% | 2.18% | 8.61% | 3.03% | 4.77% | 3.65% | 4.75% | 4.43% | 11.64% | 15.78% | 7.64% | 20.9% | 32.93% | 39.12% | 1.84% | 23.03% | 33.16% | 41.47% | 64.07% | 48.1% | 14.4% | 25.74% | -21.1% | 269.85% | 472.97% | - |
| Operating Expenses | 1.85B | 1.75B | 1.6B | 1.75B | 1.74B | 1.72B | 1.55B | 1.37B | 1.21B | 1.17B | 1.1B | 1.03B | 928.53M | 797.45M | 714.78M | 593.17M | 480.02M | 384.1M | 401.84M | 293.84M | 215.76M | 146.87M | 106.64M | 84.8M | 84.05M | 89.6M | 65.56M | 26.1M | 7.4M |
| OpEx % of Revenue | - | 56.61% | 56.81% | 62.11% | 64.71% | 65.92% | 65.96% | 60.98% | 55.94% | 56.1% | 55.21% | 53.89% | 53.61% | 53.83% | 51.9% | 51.5% | 54.43% | 58.81% | 61.81% | 55.9% | 54.75% | 52.19% | 62.3% | 73.17% | 77.64% | 83.45% | 60.34% | 93.88% | 154.17% |
| Selling, General & Admin | 1.26B | 1.18B | 1.1B | 1.14B | 1.2B | 1.2B | 1.1B | 959.35M | 824.52M | 809.13M | 767.17M | 738.08M | 664.74M | 585.44M | 537.37M | 454.26M | 361.7M | 280.44M | 293.18M | 224.81M | 166.59M | 115.35M | 82.21M | 65.54M | 65.63M | 69.54M | 46.62M | 17.4M | 4.9M |
| SG&A % of Revenue | - | 38.3% | 39.1% | 40.58% | 44.56% | 46.23% | 46.86% | 42.78% | 38.15% | 38.71% | 38.45% | 38.45% | 38.38% | 39.52% | 39.02% | 39.44% | 41.01% | 42.94% | 45.09% | 42.77% | 42.28% | 40.99% | 48.02% | 56.55% | 60.62% | 64.77% | 42.91% | 62.59% | 102.08% |
| Research & Development | 564.94M | 539.82M | 490.12M | 540.28M | 543.37M | 512.63M | 441.32M | 408.06M | 366.08M | 350.37M | 334.23M | 296.58M | 263.79M | 209.61M | 177.41M | 138.91M | 118.31M | 103.66M | 103.39M | 69.03M | 49.17M | 31.52M | 24.44M | 19.26M | 17.98M | 17.43M | 14.48M | 5.6M | 1.8M |
| R&D % of Revenue | - | 17.48% | 17.4% | 19.21% | 20.16% | 19.69% | 18.77% | 18.2% | 16.94% | 16.76% | 16.75% | 15.45% | 15.23% | 14.15% | 12.88% | 12.06% | 13.41% | 15.87% | 15.9% | 13.13% | 12.48% | 11.2% | 14.28% | 16.62% | 16.61% | 16.24% | 13.33% | 20.14% | 37.5% |
| Other Operating Expenses | 2M | 25.48M | 8.65M | 65.39M | 0 | 0 | 7.8M | 0 | 0 | 13.11M | 9.05M | 0 | 0 | 2.39M | 0 | 0 | 0 | 0 | 5.27M | 0 | 0 | 0 | 0 | 0 | 0 | 3.6M | 4.46M | 3.1M | 700K |
| Operating Income | 794.82M | 765.95M | 658.59M | 472.57M | 403.79M | 394.02M | 392.27M | 518.46M | 609.33M | 563.96M | 547.38M | 552.9M | 493.56M | 430.82M | 426.3M | 350.66M | 230M | 126.25M | 104.58M | 113.5M | 90.14M | 69.36M | 25.15M | 4.19M | -9.54M | -28.72M | 12.85M | -4.88M | -3.61M |
| Operating Margin % | 24.65% | 24.8% | 23.39% | 16.8% | 14.98% | 15.13% | 16.69% | 23.12% | 28.19% | 26.98% | 27.44% | 28.8% | 28.5% | 29.08% | 30.95% | 30.44% | 26.08% | 19.33% | 16.09% | 21.59% | 22.87% | 24.65% | 14.69% | 3.61% | -8.81% | -26.75% | 11.83% | -17.54% | -75.23% |
| Operating Income Growth % | - | 16.3% | 39.36% | 17.03% | 2.48% | 0.45% | -24.34% | -14.91% | 8.04% | 3.03% | -1% | 12.02% | 14.56% | 1.06% | 21.57% | 52.46% | 82.18% | 20.72% | -7.86% | 25.92% | 29.96% | 175.82% | 500.29% | 143.91% | 66.77% | -323.44% | 363.63% | -35% | - |
| EBITDA | 866.69M | 858.35M | 765.58M | 585.27M | 519.4M | 509.45M | 488.12M | 586.97M | 668.82M | 625.1M | 604.15M | 605.48M | 539.68M | 470.82M | 461.44M | 371.55M | 253.84M | 152.66M | 128.21M | 129.36M | 101.72M | 76.16M | 30.5M | 9.43M | -3.49M | -20.74M | 17.31M | -1.77M | -2.91M |
| EBITDA Margin % | 26.88% | 27.8% | 27.19% | 20.8% | 19.27% | 19.57% | 20.76% | 26.18% | 30.94% | 29.91% | 30.28% | 31.54% | 31.16% | 31.78% | 33.5% | 32.26% | 28.78% | 23.38% | 19.72% | 24.61% | 25.81% | 27.06% | 17.82% | 8.14% | -3.22% | -19.32% | 15.94% | -6.38% | -60.65% |
| EBITDA Growth % | 6.61% | 12.12% | 30.81% | 12.68% | 1.95% | 4.37% | -16.84% | -12.24% | 6.99% | 3.47% | -0.22% | 12.19% | 14.62% | 2.03% | 24.19% | 46.37% | 66.27% | 19.07% | -0.89% | 27.17% | 33.57% | 149.68% | 223.31% | 370.63% | 83.19% | -219.8% | 1075.44% | 39.02% | - |
| D&A (Non-Cash Add-back) | 71.87M | 92.4M | 106.99M | 112.7M | 115.61M | 115.42M | 95.86M | 68.51M | 59.49M | 61.15M | 56.78M | 52.58M | 46.12M | 40.01M | 35.14M | 20.89M | 23.83M | 26.41M | 23.62M | 15.86M | 11.59M | 6.8M | 5.36M | 5.25M | 6.05M | 7.97M | 4.46M | 3.1M | 700K |
| EBIT | 817.76M | 791.43M | 667.25M | 537.96M | 411.7M | 394.02M | 400.07M | 518.46M | 609.33M | 577.07M | 556.43M | 552.9M | 493.56M | 430.82M | 426.3M | 350.66M | 230M | 126.25M | 99.31M | 113.5M | 90.14M | 69.36M | 25.15M | 4.19M | -6.27M | -27.74M | 12.85M | -4.88M | -3.61M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 2.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 2.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 45.41M | 42.39M | 36.87M | 13.42M | -18.4M | -7.09M | 4.13M | 22.65M | -5.57M | 11.56M | 2.51M | 8.45M | 3.79M | 7.27M | 5.91M | 10.09M | 7.63M | 5.39M | 13.68M | 14.19M | 17.43M | 8.08M | 2.73M | 751K | 1.42M | 2.02M | 2.9M | 0 | 0 |
| Pretax Income | 840.23M | 808.34M | 695.47M | 485.99M | 385.39M | 386.94M | 396.4M | 541.11M | 603.76M | 575.52M | 549.89M | 561.34M | 497.34M | 438.09M | 432.21M | 360.75M | 237.63M | 131.65M | 118.26M | 127.69M | 107.57M | 77.43M | 27.88M | 4.94M | -8.12M | -26.7M | 15.76M | -4.9M | 0 |
| Pretax Margin % | 26.06% | 26.18% | 24.7% | 17.28% | 14.3% | 14.86% | 16.86% | 24.13% | 27.93% | 27.54% | 27.56% | 29.24% | 28.71% | 29.57% | 31.38% | 31.32% | 26.94% | 20.16% | 18.19% | 24.29% | 27.3% | 27.52% | 16.28% | 4.26% | -7.5% | -24.86% | 14.5% | -17.63% | - |
| Income Tax | 132.02M | 115.96M | 128.69M | 91.04M | 63.23M | 55.7M | 88.96M | 113.38M | 150.07M | 154.76M | 184.04M | 196.33M | 186.16M | 160.78M | 157.03M | 119.35M | 86.47M | 40.11M | 43.93M | 50.69M | 41.56M | 30.53M | -8.45M | 853K | 489K | 4.09M | 2.1M | -600K | 3.7M |
| Effective Tax Rate % | 15.71% | 14.35% | 18.5% | 18.73% | 16.41% | 14.39% | 22.44% | 20.95% | 24.86% | 26.89% | 33.47% | 34.97% | 37.43% | 36.7% | 36.33% | 33.08% | 36.39% | 30.47% | 37.15% | 39.7% | 38.64% | 39.43% | -30.32% | 17.27% | -6.02% | -15.34% | 13.36% | 12.24% | - |
| Net Income | 708.21M | 692.38M | 566.78M | 394.95M | 322.16M | 331.24M | 307.44M | 427.73M | 453.69M | 420.76M | 365.86M | 365.01M | 311.18M | 277.31M | 275.19M | 241.4M | 151.15M | 91.53M | 74.33M | 77M | 66M | 46.9M | 36.33M | 4.09M | -8.61M | -30.79M | 13.65M | -4.3M | -3.7M |
| Net Margin % | 21.96% | 22.42% | 20.13% | 14.04% | 11.95% | 12.72% | 13.08% | 19.07% | 20.99% | 20.13% | 18.34% | 19.01% | 17.97% | 18.72% | 19.98% | 20.96% | 17.14% | 14.02% | 11.43% | 14.65% | 16.75% | 16.67% | 21.22% | 3.53% | -7.95% | -28.68% | 12.56% | -15.47% | -77.08% |
| Net Income Growth % | 13.98% | 22.16% | 43.51% | 22.59% | -2.74% | 7.74% | -28.12% | -5.72% | 7.83% | 15.01% | 0.23% | 17.3% | 12.21% | 0.77% | 14% | 59.7% | 65.13% | 23.15% | -3.47% | 16.66% | 40.73% | 29.11% | 788.87% | 147.47% | 72.04% | -325.57% | 417.44% | -16.22% | - |
| Net Income (Continuing) | 708.21M | 692.38M | 566.78M | 394.95M | 322.16M | 331.24M | 307.44M | 427.73M | 453.69M | 420.76M | 365.86M | 365.01M | 311.18M | 277.31M | 275.19M | 241.4M | 151.15M | 91.53M | 74.33M | 77M | 66M | 46.9M | 36.33M | 4.09M | -8.61M | -30.79M | 13.65M | -4.3M | -3.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 12.36 | 11.80 | 9.55 | 6.55 | 5.27 | 5.34 | 5.01 | 7.08 | 7.32 | 6.50 | 5.38 | 5.03 | 4.09 | 3.50 | 3.45 | 2.96 | 1.86 | 1.14 | 0.89 | 0.90 | 0.79 | 0.61 | 0.26 | 0.07 | -0.17 | -0.68 | 0.30 | -0.10 | -0.15 |
| EPS Growth % | 15.65% | 23.56% | 45.8% | 24.29% | -1.31% | 6.59% | -29.24% | -3.28% | 12.62% | 20.82% | 6.96% | 22.98% | 16.86% | 1.45% | 16.55% | 59.14% | 63.16% | 28.09% | -1.11% | 13.92% | 29.51% | 134.62% | 271.43% | 141.18% | 75% | -326.67% | 403.34% | 34.07% | - |
| EPS (Basic) | - | 11.96 | 9.65 | 6.59 | 5.34 | 5.46 | 5.05 | 7.12 | 7.41 | 6.56 | 5.43 | 5.07 | 4.13 | 3.53 | 3.48 | 2.99 | 1.90 | 1.16 | 0.90 | 0.93 | 1.08 | 0.63 | 0.74 | 0.08 | -0.17 | -0.68 | 0.33 | -0.11 | -0.15 |
| Diluted Shares Outstanding | 57.3M | 58.68M | 59.36M | 60.27M | 61.1M | 62.06M | 61.38M | 60.46M | 62.01M | 64.78M | 67.98M | 72.55M | 76.09M | 79.14M | 79.78M | 81.48M | 81.05M | 80.07M | 83.43M | 85.14M | 83.98M | 77.47M | 143.84M | 58.63M | 50.65M | 45.29M | 46.13M | 43.49M | 25.37M |
| Basic Shares Outstanding | 56.71M | 57.9M | 58.72M | 59.91M | 60.27M | 60.71M | 60.91M | 60.04M | 61.26M | 64.17M | 67.43M | 71.94M | 75.39M | 78.56M | 79.14M | 80.66M | 79.61M | 78.84M | 82.29M | 83.2M | 61.1M | 74.44M | 48.8M | 52.91M | 50.65M | 45.29M | 42.27M | 40.85M | 25.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Legacy hardware revenue cannibalization
According to recent financial disclosures, F5's revenue growth has exhibited a volatile trajectory, shifting from a 3.1% contraction in 2024Q2 to an 11.0% expansion by 2026Q2, reflecting the ongoing transition from legacy hardware cycles toward a more consistent, albeit slower, recurring software-based subscription model.
The recent acceleration in top-line growth suggests that the company is successfully navigating the pivot toward its Distributed Cloud platform. However, investors should monitor whether this growth is sustainable or merely a reflection of lumpy hardware refresh cycles that continue to mask the underlying subscription momentum.
As reported in quarterly filings, F5 has maintained robust gross margins consistently above 80%, with the 2026Q2 figure reaching 82.8%, which underscores the company's ability to preserve pricing power despite the broader industry shift toward commoditized cloud-native load balancing and security tools.
This high-margin profile appears to be supported by the sticky nature of the TMOS ecosystem and proprietary iRules, which create significant switching costs for enterprise clients. The stability of these margins suggests that the company's software-centric pivot is not yet diluting the core profitability of its service offerings.
Based on the provided income statement data, operating margins have fluctuated between 20.5% and 26.8% over the last ten quarters, indicating that F5 has struggled to consistently scale operating income faster than gross profit as it absorbs rising R&D and SG&A expenses.
The lack of clear operating leverage suggests that the company is currently in a heavy investment phase, likely prioritizing the development of its Distributed Cloud vision. This may imply that near-term profitability will remain sensitive to the pace of headcount expansion and integration costs associated with recent acquisitions.
Analysis of the reported figures reveals that stock-based compensation remains a persistent expense, totaling $68.0 million in 2026Q2, which warrants further investigation as it continues to create a meaningful wedge between GAAP net income and the company's adjusted profitability metrics for shareholders.
The consistent level of SBC suggests that management is utilizing equity-based incentives to retain talent during this strategic transition. Investors should monitor whether this dilution is adequately offset by share repurchases, as the current EPS growth may be partially supported by a shrinking share count rather than pure operational efficiency.
While F5 maintains a strong competitive position, the income statement suggests a potential vulnerability, as the company's reliance on legacy hardware revenue may be increasingly threatened by hyperscaler-native security tools, potentially leading to margin compression if pricing power erodes in the core BIG-IP segment.
The tension between maintaining the legacy business and funding the software-first future may result in a 'house divided' scenario where resources are spread too thin. This warrants caution, as any failure to successfully cross-sell new SaaS offerings into the existing installed base could lead to a significant deceleration in future growth.
Quick answers to the most common questions about buying FFIV stock.
For fiscal year 2025, F5, Inc. (FFIV) reported total revenue of $3.09B. This represents a 64234.8% increase compared to $4.8M in 1998.
F5, Inc. (FFIV) is profitable, generating $692.4M in net income for the fiscal year ending 2025 with a net profit margin of 22.4%.
F5, Inc. (FFIV) reported an operating income of $765.9M, resulting in an operating profit margin of 24.8%. This margin reflects the operational efficiency of the business before interest and taxes.
F5, Inc. (FFIV) generated $2.51B in gross profit for the year, representing a gross profit margin of 81.4%. This demonstrates the company's core pricing power and production efficiency.