F5, Inc. (NASDAQ: FFIV) reported product revenue of $410 million, representing an 11% increase year-over-year. The growth was primarily fueled by a 37% surge in systems revenue, which reached $218 million. In contrast, software revenue for the quarter was $192 million, reflecting an 8% decline compared to the high performance seen in the prior-year period.
Business & Operations Update
The company launched F5 AI Guardrails and the F5 AI Red Team to support secure enterprise AI deployments. Additionally, the integration of NGINXaaS for Google Cloud was finalized, and a new partner program was introduced for its Application Delivery and Security Platform (ADSP).
M&A or Strategic Moves
F5 established a strategic alliance with CrowdStrike to embed Falcon sensors into F5 BIG-IP devices. This collaboration aims to consolidate security at the network edge. No other major acquisitions were disclosed during the period.
Financial Trends
Equity Analyst Commentary
Institutional analysts from RBC Capital and Piper Sandler recently upgraded the stock to “Outperform” and “Overweight,” respectively. These adjustments followed the company’s disclosure of reduced impact from a previous security incident. Conversely, Morgan Stanley maintained an “Equal Weight” rating in late 2025.
Performance Summary
F5 shares responded to a 7% rise in quarterly revenue and an upward revision in annual guidance. The performance was characterized by a 37% surge in systems revenue, which offset a decline in software sales. The company maintains its focus on AI-ready infrastructure as it enters the second quarter.
