F5 reports Q4 beat but FY27 outlook miss, shares tumble
F5 Networks posted fourth‑quarter revenue of $917 million, up 13% year over year, and product revenue rose 23%. The company guided FY2027 revenue growth of 8%‑9% and a non‑GAAP gross margin of 80.5%‑82.5%, both below analyst expectations. After the release, Piper Sandler downgraded the stock to Neutral and set a $461 price target, while Evercore ISI raised its target to $500. The mixed signals sent the shares sharply lower in trading.
Why it matters
The weaker FY27 guidance and margin outlook pressured the stock, causing a pre‑market decline of 6.6% and an intraday fall of up to 18%, which may affect short‑term trading strategies. Analyst rating changes also adjust target prices that investors use for valuation.
Key facts
- 1Q4 revenue increased to $917 million, up from $810 million a year earlier. finance.yahoo.com
- 2Product revenue grew 23% to $510 million. finance.yahoo.com
- 3FY2027 revenue growth guidance is 8%‑9%. investing.com
- 4FY2027 non‑GAAP gross margin is forecast at 80.5%‑82.5%, down from 84% in the quarter. investing.com
- 5Piper Sandler downgraded the stock to Neutral and set a price target of $461. investing.com
- 6Evercore ISI raised its price target to $500 while keeping an Outperform rating. investing.com
Open questions
- Materials report different intraday decline percentages: 6.6% pre‑market, 15%, and nearly 18%.
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.