Q4 FY2026 and FY2026
Filed Oct 27, 2026F5 Reports Fourth Quarter Results with 23% Product Revenue Growth Driving 13% Total Revenue Growth Year Over Year; Board Authorizes Additional $1.5 Billion for Share Repurchases
Q4 total revenue grew 13% year over year and product revenue grew 23%, led by 29% systems revenue growth. Gross margin held at 82.2% on a GAAP basis, while GAAP and non-GAAP operating margins were below the prior-year period. The company guided FY2027 revenue growth of 8% to 9% and authorized an additional $1.5 billion for repurchases.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 FY2026 total revenueGAAP | $917M | – | 13% |
| Q4 FY2026 GAAP gross profitGAAP | $754M | – | – |
| Q4 FY2026 GAAP gross marginGAAP | 82.2% | – | – |
| Q4 FY2026 non-GAAP gross profitnon-GAAP | $771M | – | – |
| Q4 FY2026 non-GAAP gross marginnon-GAAP | 84.0% | – | – |
| Q4 FY2026 GAAP income from operationsGAAP | $212M | – | – |
| Q4 FY2026 GAAP operating marginGAAP | 23.1% | – | – |
| Q4 FY2026 non-GAAP income from operationsnon-GAAP | $309M | – | – |
| Q4 FY2026 non-GAAP operating marginnon-GAAP | 33.7% | – | – |
| Q4 FY2026 GAAP net incomeGAAP | $186M | – | – |
| Q4 FY2026 GAAP diluted EPSGAAP | $3.23 per diluted share | – | – |
| Q4 FY2026 non-GAAP net incomenon-GAAP | $255M | – | – |
| Q4 FY2026 non-GAAP diluted EPSnon-GAAP | $4.42 per diluted share | – | – |
| Q4 FY2026 sales and marketing expenseGAAP | $274.3M | – | – |
| Q4 FY2026 research and development expenseGAAP | $164.6M | – | – |
| Q4 FY2026 general and administrative expenseGAAP | $96.47M | – | – |
| Q4 FY2026 restructuring chargesGAAP | $7.4M | – | – |
| Q4 FY2026 other income, netGAAP | $17.84M | – | – |
| Q4 FY2026 provision for income taxesGAAP | $43.45M | – | – |
| FY2026 total revenueGAAP | $3.42B | – | 11% |
| FY2026 GAAP gross profitGAAP | $2.80B | – | – |
| FY2026 GAAP gross marginGAAP | 81.9% | – | – |
| FY2026 non-GAAP gross profitnon-GAAP | $2.87B | – | – |
| FY2026 non-GAAP gross marginnon-GAAP | 84.0% | – | – |
| FY2026 GAAP income from operationsGAAP | $818M | – | – |
| FY2026 GAAP operating marginGAAP | 23.9% | – | – |
| FY2026 non-GAAP income from operationsnon-GAAP | $1.2B | – | – |
| FY2026 non-GAAP operating marginnon-GAAP | 35.1% | – | – |
| FY2026 GAAP net incomeGAAP | $722M | – | – |
| FY2026 GAAP diluted EPSGAAP | $12.52 per diluted share | – | – |
| FY2026 non-GAAP net incomenon-GAAP | $1.01B | – | – |
| FY2026 non-GAAP diluted EPSnon-GAAP | $17.49 per diluted share | – | – |
| FY2026 sales and marketing expenseGAAP | $976.5M | – | – |
| FY2026 research and development expenseGAAP | $621.4M | – | – |
| FY2026 general and administrative expenseGAAP | $374.3M | – | – |
| FY2026 restructuring chargesGAAP | $7.01M | – | – |
| FY2026 other income, netGAAP | $49.70M | – | – |
| FY2026 provision for income taxesGAAP | $145.8M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q4 FY2026 Product revenueSystems revenue of $239 million grew 29% from the year-ago period and software revenue of $271 million grew 19%. | $510M | – | 23% |
| Q4 FY2026 Systems revenueReported as a component of product revenue. | $239M | – | 29% |
| Q4 FY2026 Software revenueReported as a component of product revenue. | $271M | – | 19% |
| Q4 FY2026 Services revenueReported separately from product revenue. | $408M | – | 3% |
| FY2026 Product revenueSystems revenue of $923 million grew 31% from the year-ago period and software revenue of $870 million grew 8%. | $1.79B | – | 19% |
| FY2026 Systems revenueReported as a component of product revenue. | $923M | – | 31% |
| FY2026 Software revenueReported as a component of product revenue. | $870M | – | 8% |
| FY2026 Services revenueReported separately from product revenue. | $1.62B | – | 3% |
FY2027 and Q1 FY2027 outlook
- RevenueFY2027 revenue growth of 8% to 9%; Q1 FY2027 revenue in the range of $875 million to $895 million
- NoteFY2027 non-GAAP earnings per share in a range of $18.00 to $18.30.
- NoteQ1 FY2027 non-GAAP earnings in the range of $4.25 to $4.37 per diluted share.
Capital returns
- Board of Directors authorized an additional $1.5 billion for its common stock repurchase program.
- The new authorization is incremental to the $322 million remaining in the Company’s existing program.
- Payments for repurchase of common stock, including excise taxes, were $601,113 (in thousands) for FY2026, compared with $502,085 (in thousands) for FY2025.
What drove it
- Q4 product revenue growth of 23% drove total revenue growth of 13%.
- Q4 systems revenue grew 29% and Q4 software revenue grew 19%.
- FY2026 product revenue grew 19%, including 31% growth in systems revenue and 8% growth in software revenue.
- The company cited hybrid multicloud complexity, an intensifying threat landscape, and a rapidly evolving AI-driven world as factors expanding F5's strategic role.
Concerns
- Q4 GAAP operating margin was 23.1%, compared with 25.4% in the year-ago period.
- Q4 non-GAAP operating margin was 33.7%, compared with 37.0% in the year-ago period.
- FY2026 GAAP operating margin was 23.9%, compared with 24.8% in FY2025.
- FY2026 non-GAAP operating margin was 35.1%, compared with 35.2% in FY2025.
- Q4 GAAP net income was $186 million, compared with $190 million in the year-ago period; Q4 non-GAAP net income was $255 million, compared with $257 million.
- Services revenue grew 3% in both Q4 FY2026 and FY2026.
What to watch
- Execution against FY2027 revenue growth guidance of 8% to 9%.
- Q1 FY2027 revenue guidance of $875 million to $895 million and non-GAAP earnings guidance of $4.25 to $4.37 per diluted share.
- Whether systems and software revenue growth continues to outpace services revenue growth.
- GAAP and non-GAAP operating-margin performance following Q4 and FY2026 declines versus the corresponding prior-year periods.
- Deployment of the additional $1.5 billion share-repurchase authorization.
Balance sheet and cash flow
- Cash and cash equivalents were $1,590,528 (in thousands) at September 30, 2026, compared with $1,344,273 (in thousands) at September 30, 2025.
- Accounts receivable, net were $448,753 (in thousands), compared with $414,433 (in thousands).
- Inventories were $261,918 (in thousands), compared with $77,229 (in thousands).
- Deferred revenue was $1,265,273 (in thousands) current and $939,164 (in thousands) long-term, compared with $1,213,226 (in thousands) current and $786,011 (in thousands) long-term.
- Total assets were $7,062,128 (in thousands), compared with $6,319,492 (in thousands).
- Total shareholders’ equity was $4,005,251 (in thousands), compared with $3,591,999 (in thousands).
- Net cash provided by operating activities was $959,489 (in thousands) for FY2026, compared with $949,666 (in thousands) for FY2025.
- Purchases of property and equipment were $90,545 (in thousands) for FY2026, compared with $43,260 (in thousands) for FY2025.
- Net cash used in investing activities was $143,937 (in thousands) for FY2026, compared with $219,491 (in thousands) for FY2025.
- Net cash used in financing activities was $567,262 (in thousands) for FY2026, compared with $464,815 (in thousands) for FY2025.
Analysis
F5 closed FY2026 with Q4 revenue of $917 million, up 13% from $810 million. Product revenue was $510 million, up 23%, while services revenue was $408 million and grew 3%. The product mix was led by systems revenue of $239 million, up 29%, and software revenue of $271 million, up 19%. For FY2026, total revenue was $3,417 million, up 11%, and product revenue was $1,793 million, up 19%.
Gross-profit performance was stable in Q4 on a GAAP basis, with gross margin of 82.2%, unchanged from the year-ago period. Q4 non-GAAP gross margin was 84.0%, compared with 84.3%. FY2026 GAAP gross margin was 81.9%, compared with 81.4%, and FY2026 non-GAAP gross margin was 84.0%, compared with 83.6%.
Operating-margin performance trailed the corresponding prior-year periods. Q4 GAAP operating margin was 23.1%, compared with 25.4%, and non-GAAP operating margin was 33.7%, compared with 37.0%. For FY2026, GAAP operating margin was 23.9%, compared with 24.8%, while non-GAAP operating margin was 35.1%, compared with 35.2%. Q4 GAAP net income was $186 million, compared with $190 million, although FY2026 GAAP net income was $722 million, compared with $692 million.
Operating cash flow was $959,489 (in thousands) in FY2026, compared with $949,666 (in thousands), while purchases of property and equipment were $90,545 (in thousands). Cash and cash equivalents were $1,590,528 (in thousands) at September 30, 2026. The board authorized an additional $1.5 billion for repurchases, incremental to $322 million remaining under the existing program.
The FY2027 outlook calls for revenue growth of 8% to 9% and non-GAAP earnings per share of $18.00 to $18.30. For Q1 FY2027, F5 guided revenue to $875 million to $895 million and non-GAAP earnings to $4.25 to $4.37 per diluted share. The filing provides no forward gross-margin, operating-expense, or tax-rate outlook.
Management, verbatim
Q4 closed out an exceptional fiscal year. In the quarter, we delivered 23% product revenue growth driving 13% total revenue growth year over year. 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.
François Locoh-Donou, Chairman, President and CEO
Frontier AI is rewriting the rules of enterprise security, accelerating vulnerability discovery to machine speed, expanding the attack surface through APIs and AI agents, and collapsing the time available to respond. F5 is focused on ensuring our customers can meet this moment, using AI to identify risk earlier, and enforcing consistent protection at runtime across every environment.
François Locoh-Donou, Chairman, President and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported Q4 FY2026 operating metrics.
- Free cash flow.
- Quarterly operating cash flow, investing cash flow, financing cash flow, and capital expenditures.
- Debt balances or debt maturities.
- Dividend amount or dividend policy.
- FY2027 and Q1 FY2027 GAAP earnings guidance.
- FY2027 and Q1 FY2027 gross-margin, operating-expense, and tax-rate guidance.
- Prior-period guidance for comparison.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.