F5 Reports 11% Revenue Growth to $811.7 Million in Q2 FY 2026

F5, Inc. reported significant financial performance for the second quarter of fiscal year 2026, with total net revenues reaching $811.7 million, a 11% increase from $731.1 million in the same period last year. The company's product revenues surged by 21.7% to $410.5 million, while service revenues saw a modest increase of 1.8% to $401.2 million. For the first half of the fiscal year, total revenues amounted to $1.63 billion, up from $1.50 billion in the prior year, reflecting a strong demand for both systems and software solutions.

The company’s gross profit for the quarter was $660.8 million, translating to a gross margin of 81.4%, compared to 80.7% in the previous year. Operating expenses increased to $481.8 million, primarily driven by higher sales and marketing costs, which rose by 9.8% to $239.4 million. Despite these increases, F5's income from operations improved to $179.0 million, leading to a net income of $147.8 million, slightly up from $145.5 million year-over-year. The diluted earnings per share for the quarter were $2.58, compared to $2.48 in the same quarter last year.

F5 has also made strategic moves, including the acquisition of CalypsoAI Corp. for $145.2 million, which enhances its capabilities in enterprise AI security. This acquisition is expected to integrate with F5's existing offerings, particularly in securing AI inference. The company has continued to expand its product offerings, with notable growth in systems revenue, which increased by 26.2% for the quarter, driven by heightened customer demand.

Operationally, F5 reported a total deferred revenue balance of $2.1 billion as of March 31, 2026, up from $2.0 billion at the end of the previous fiscal year, indicating strong future revenue potential. The company’s cash and cash equivalents increased to $1.44 billion, bolstered by cash provided from operating activities of $525.1 million during the first half of the fiscal year. F5's employee headcount remained stable, with no significant changes reported, as the company continues to focus on optimizing its resources.

Looking ahead, F5 anticipates continued growth driven by its expanding product portfolio and strategic acquisitions. The company remains vigilant regarding macroeconomic conditions, including inflation and foreign currency fluctuations, which could impact its operations. F5's management is committed to leveraging its strong financial position to pursue further growth opportunities while maintaining operational efficiency.