F5 (NASDAQ:FFIV) has recently introduced new, extensive post-quantum cryptography (PQC) readiness solutions that are integrated smoothly into its Application Delivery and Security Platform. These solutions aim to secure applications and APIs while ensuring high performance and scalability, which is crucial given the transformative impact of post-quantum cryptography on data security.
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F5 (FFIV) reported earnings 30 days ago. What's next for the stock?
FFIV accelerates growth with AI-driven innovation, robust software renewal base and deep enterprise traction across key sectors.
F5 (FFIV) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Examine F5's (FFIV) international revenue patterns and their implications on Wall Street's forecasts and the prospective trajectory of the stock.
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Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
I am neutral on F5, Inc. due to weak software momentum, uncertain demand visibility, and macro risks potentially impacting FY25 guidance. Despite strong systems growth in 2Q25, the heavy reliance on 2H25 renewals introduces significant timing risks and uncertainty. Management's optimism on FY25 outlook is questionable, given potential macroeconomic pressures and the stock trading at a premium to historical averages.
F5 Inc. has shown resilience with strong Q1 and Q2 FY25 performance, beating EPS estimates for 11 straight quarters and achieving significant revenue growth. The company benefits from a stable IT spending environment, robust recurring revenue streams, and a strategic pivot to software and cloud services. Despite a significant YTD decline in the tech sector, F5's unique hybrid multi-cloud portfolio and AI integration provide a competitive edge.
F5's second-quarter fiscal 2025 results reflect strength in System revenues, while Software remains flat.
F5, Inc. raised its fiscal 2025 outlook, showing solid topline growth and strong underlying profitability, yet the market reaction was muted. FFIV operates debt-free with 8% of its market cap in net cash, justifying its 17x forward free cash flow valuation. The company's new ADSP platform and hardware upgrades drive growth, while its minimal tariff impact and steady demand bolster confidence.