F5 reported first quarter fiscal 2026 revenue of $822 million, up 7% year over year, driven by continued momentum in product sales. The results, announced today, cover the quarter ended December 31, 2025, and reflect an 11% increase in product revenue, including a 37% jump in systems revenue. The company cited sustained enterprise investment in hybrid multicloud architectures, AI-driven application traffic, and consolidated security and delivery platforms.
Product strength offset softer software comparisons against a strong year-ago period, while services revenue continued to expand. Systems revenue reached $218 million, up sharply from the prior year, as customers refreshed infrastructure to support modern application and API workloads. Software revenue totaled $192 million, down 8% year over year, while global services revenue grew 4% to $412 million, highlighting the stability of F5’s recurring revenue base.
Profitability remained strong in the quarter. F5 posted GAAP operating income of $214 million, representing a 26.0% operating margin, and non-GAAP operating income of $314 million, or a 38.2% margin. On the strength of the quarter, F5 raised its full-year fiscal 2026 guidance, pointing to improved visibility across enterprise and service provider customers.
- Q1 FY2026 revenue: $822 million, up 7% year over year
- Product revenue growth: 11% year over year
- Systems revenue: $218 million, up 37% year over year
- Software revenue: $192 million, down 8% year over year
- Global services revenue: $412 million, up 4% year over year
- GAAP EPS: $3.10; Non-GAAP EPS: $4.45
- FY2026 revenue growth outlook raised to 5%–6%
- FY2026 non-GAAP EPS outlook raised to $15.65–$16.05
“Our first quarter revenue of $822 million reflects 7% growth year over year, driven by 11% product revenue growth, including 37% growth in systems revenue,” said François Locoh-Donou, President and CEO of F5. “This strong performance underscores F5’s alignment with durable market demand drivers including the shift to hybrid multicloud architectures, enterprise adoption of AI, and the growing need for converged platforms.”
🌐 Analysis
F5’s results highlight a broader trend toward infrastructure refresh cycles as enterprises modernize application delivery and security to handle AI-driven traffic patterns and API proliferation. The outsized growth in systems revenue suggests customers are prioritizing performance and scale at the data plane, while the raised outlook places F5 among a small group of networking and security vendors showing renewed top-line acceleration entering 2026.