F5 Q4 product revenue rises 23%, board adds $1.5 billion buyback

F5, Inc. (FFIV) said in a regulatory filing on Oct. 27 that fourth-quarter fiscal 2026 revenue rose 13% to $917.43 million, and its non-GAAP earnings were $4.42 per diluted share. Both were above the consensus estimates compiled by Finnhub.

Shares fell 1.2% in after-hours trading as of 5:12 p.m. ET, from a regular-session close of $460.72.

The board of directors also authorized an additional $1.5 billion for the company's share repurchase program on Oct. 23, according to the filing.

Here's how the company did:

• Adjusted EPS: $4.42 per diluted share vs. $4.39 a year earlier, above the $4.34 expected, according to Finnhub
• Revenue: $917.43 million vs. $810.09 million a year earlier, above the $901.74 million expected, according to Finnhub
• GAAP EPS: $3.23 per diluted share vs. $3.26 a year earlier

Product and services growth

Product revenue totaled $509.77 million, up 23% from $414.11 million a year earlier, the release said.

Systems revenue of $239 million grew 29% and software revenue of $271 million grew 19%. Services revenue of $408 million rose 3% from the year-ago period.

Chairman, President and CEO François Locoh-Donou said, “Nine consecutive quarters of double-digit product revenue growth reflect F5's expanding strategic role as our customers navigate hybrid multicloud complexity.”

Margins and costs

GAAP operating margin was 23.1%, down from 25.4% a year earlier. Non-GAAP operating margin was 33.7%, down from 37.0%.

Restructuring charges were $7.4 million in the quarter, compared with $14.2 million a year earlier.

Fiscal 2027 outlook

The company said it expects fiscal 2027 revenue growth of 8% to 9% and non-GAAP earnings of $18.00 to $18.30 per share.

For the first quarter of fiscal 2027, it guided to revenue of $875 million to $895 million and non-GAAP earnings of $4.25 to $4.37 per diluted share.

The company said its non-GAAP outlook excludes amortization, share-based compensation, and certain tax and restructuring items, and that it cannot reconcile the forward non-GAAP guidance to GAAP without unreasonable effort.

Share repurchases

The new $1.5 billion authorization is incremental to the $322.4 million unused under the existing program, the filing said.

Purchases may be made in private transactions, accelerated repurchase programs, or open market purchases, as permitted by securities laws. The program can be terminated at any time.

In fiscal 2026, payments for share repurchases totaled $601.1 million, up from $502.1 million a year earlier, according to the cash flow statement.