# F5 Networks (FFIV.US)

Canonical: https://gigainvestors.com/s/FFIV

Analysis as of: 2026-10-16T07:28:30.435Z. Financial observations: FY1998–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $456.58 per share; close as of 2026-10-15.

Estimated value: low $140.84 per share, central $170.63 per share, high $194.69 per share. Buy at or below the central value $170.63 per share. Valuation as of 2026-10-16T07:28:30.435Z; scenarios are not confidence intervals.

Expected annual return: 5.3% at the stated quote. About 5.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.27×

- FY2018: 0.28×

- FY2019: 0.23×

- FY2020: 0.17×

- FY2021: 0.15×

- FY2022: 0.15×

- FY2023: 0.17×

- FY2024: 0.23×

- FY2025: 0.25×

- LTM to Jun 2026: 0.25×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 32.8%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 81.8%

- Recent gross margin (lower of latest and 3-year median): 81.4%

- Years with nonpositive capital: 3

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 25.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 32.8%

- FY2018: 34.9%

- FY2019: 23.3%

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

- LTM to Jun 2026: >100%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.7B

- Net income, five-year total: $2.3B

- Return on incremental invested capital: 107.9%

- Working capital / revenue, annual change: 2.3 pp

- Working capital / revenue, change between three-year averages: 16.2 pp

- Working capital / revenue, final three-year average: 29.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.26×

- FY2022: 1.25×

- FY2023: 1.15×

- FY2024: 1.14×

- FY2025: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 32.8% vs 221.4%

- Per-share earnings: 5.38 to 9.55 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.1%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: $11B

- Cumulative retained earnings: $2.3B

- Diluted shares, 10-year annual growth: -2.1%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.4%

- Per-share value change: $4.17

- Per-share value, starting three-year median: $5.38

- Per-share value, ending three-year median: $9.55

- Buybacks concentrated in cheaper years (correlation): 0.00

- Average buyback yield: 4.1%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $2.0B

- Cumulative net income, 10 years: $4.3B

- ROIC, first three-year median: 32.8%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.38

- FY2017: $6.50

- FY2018: $7.32

- FY2019: $7.08

- FY2020: $5.01

- FY2021: $5.34

- FY2022: $5.27

- FY2023: $6.55

- FY2024: $9.55

- FY2025: $11.80

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 24.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.37×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.71×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -15.0%

- FY2017: -12.9%

- FY2018: -11.8%

- FY2019: -9.4%

- FY2020: -7.6%

- FY2021: -6.3%

- FY2022: -2.3%

- FY2023: -4.9%

- FY2024: -4.0%

- FY2025: -4.1%

## Holders

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 17.4% a year for ten years · "AI Security, Institutional Inflows Push F5 Shares Up 75% YTD" (finance.yahoo.com, Sep 2026) · sales +7.2%

Story as of 2026-10-16T09:58:45.139Z; price observation 2026-10-15.

Price needs cash profits to grow 17.4% a year for ten years

- 2025-05-12: FFIV Q1 Earnings Call: Hardware Refresh Cycle and AI Initiatives Drive Outperformance ([finance.yahoo.com](https://finance.yahoo.com/news/ffiv-q1-earnings-call-hardware-135818177.html))

- 2025-10-28: F5 Q4 Earnings and Revenues Beat Estimates, Stock Down on Dim Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/f5-q4-earnings-revenues-beat-124200386.html))

- 2026-01-28: F5 Stock Soars 9% as Q1 Earnings and Revenues Beat Estimates ([finance.yahoo.com](https://finance.yahoo.com/news/f5-stock-soars-9-q1-131900859.html))

- 2026-04-28: F5 raises annual revenue growth forecast on strong security spending ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/f5-raises-annual-revenue-growth-213936202.html))

- 2026-05-19: F5's Hardware 'Refresh Plus' Cycle Amplified by Growing AI Workloads, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/f5-apos-hardware-apos-refresh-153214602.html))

- 2026-09-25: AI Security, Institutional Inflows Push F5 Shares Up 75% YTD ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ai-security-institutional-inflows-push-130916359.html))

### Sales · FY2025–2026

sales +7.2%; source https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm; observed 2025-11-25.

- FY2017: $2.1B 

- FY2018: $2.2B 

- FY2019: $2.2B 

- FY2020: $2.4B 

- FY2021: $2.6B 

- FY2022: $2.7B 

- FY2023: $2.8B 

- FY2024: $2.8B 

- FY2025: $3.1B 

- FY2026: $3.3B 

### Gross margin · FY2026

gross margin 82.2%; source https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm; observed 2025-11-25.

- FY2017: 83.1% 

- FY2018: 83.3% 

- FY2019: 84.1% 

- FY2020: 82.6% 

- FY2021: 81.1% 

- FY2022: 80.0% 

- FY2023: 78.9% 

- FY2024: 80.2% 

- FY2025: 81.4% 

- FY2026: 82.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 3.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm (filed 2025-11-25); FY2025: revenue 3088072000; grossProfit 2514094000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FFIV.US: F5, Inc. provides multicloud application security and delivery solutions in the United States, Europe, the Middle East, Africa, and the Asia Pacific region. The company's distributed cloud services enable its customers to deploy, secure, and operate applications in any architecture, from on-premises to the public cloud. It also offers unified, security, networking, and application management solutions, such as web app and API protection; multi-cloud networking; application delivery and deployment; domain name system; content delivery network; and application deployment and orchestration. In addition, the company provides application security and delivery products, including NGINX Plus; NGINX One Console; NGINX Ingress Controller; WAF for NGINX; BIG-IP Packaged Software; and BIG-IP Systems. Further, it provides a range of professional services, including maintenance, consulting, training, and other technical support services. The company sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, systems integrators, and other indirect channel partners. It has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The company was formerly known as F5 Networks, Inc. and changed its name to F5, Inc. in November 2021. F5, Inc. was incorporated in 1996 and is headquartered in Seattle, Washington.

### Why customers stay

Margins ranged from 78.9% to 81.4% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: grossProfit / revenue = 78.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: grossProfit / revenue = 80.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm (filed 2025-11-25); FY2025: grossProfit / revenue = 81.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); 10-year return on capital observations [[2017,0.3276608408125884],[2018,0.34868176304603615],[2019,0.2326608289654274],[2020,1.1056157682287409],[2021,1.375221171253284],[2022,1.287451611290957],[2023,1.6786371521967078],[2024,2.583362134793714],[2025,2.2135925882619185],[2026,34.84578673527554]]; median 1.3313363912721206. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 3 of 10 years; bought back USD 502.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2016: growth capex 3556823.7029233277; upkeep 64681176.29707667; owner earnings 357949823.7029233. Growth capex / owner earnings = 0.009936654434212757.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2017: growth capex 0; upkeep 38681000; owner earnings 443228000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2018: growth capex 0; upkeep 53465000; owner earnings 459715000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2019: growth capex 5462872.146818861; upkeep 98079127.85318114; owner earnings 398161872.1468189. Growth capex / owner earnings = 0.013720229205684649.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2020: growth capex 0; upkeep 59940000; owner earnings 343358000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2021: growth capex 0; upkeep 30651000; owner earnings 416014000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2022: growth capex 0; upkeep 33624000; owner earnings 404145000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: growth capex 0; upkeep 54184000; owner earnings 453466000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: growth capex 0; upkeep 30412000; owner earnings 643357000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm (filed 2025-11-25); FY2025: growth capex 0; upkeep 43260000; owner earnings 741519000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,52835000],[2021,65751999],[2022,0],[2023,59959000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm (filed 2025-11-25); FY2025: cash repurchases 502085000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FFIV.US SharesStats.PercentInsiders = 0.498 percentage points; cache date 2026-10-16.

### What could break it

"Our success depends on our key personnel" (SEC filing, Nov 2025)

- Source: https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm (filed 2025-11-25); Our success depends on our key personnel

### What the price says

The price assumes cash profits grow 17.4% yearly over ten years; actual growth was 9.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Ten-year compound average after fade. Initial solved rate 0.23927447796259405. Price 456.58; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.943500168438289 → FY2025 12.635795105991411. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $138.21 per share

- 2016-11: $140.75 per share

- 2016-12: $144.72 per share

- 2017-01: $134.03 per share

- 2017-02: $143.27 per share

- 2017-03: $142.57 per share

- 2017-04: $129.13 per share

- 2017-05: $128.13 per share

- 2017-06: $127.06 per share

- 2017-07: $120.75 per share

- 2017-08: $119.38 per share

- 2017-09: $120.56 per share

- 2017-10: $121.27 per share

- 2017-11: $134.20 per share

- 2017-12: $131.22 per share

- 2018-01: $144.54 per share

- 2018-02: $148.52 per share

- 2018-03: $144.61 per share

- 2018-04: $163.09 per share

- 2018-05: $173.11 per share

- 2018-06: $172.45 per share

- 2018-07: $171.38 per share

- 2018-08: $189.12 per share

- 2018-09: $199.42 per share

- 2018-10: $175.28 per share

- 2018-11: $171.97 per share

- 2018-12: $162.03 per share

- 2019-01: $160.95 per share

- 2019-02: $168.14 per share

- 2019-03: $156.93 per share

- 2019-04: $156.90 per share

- 2019-05: $132.08 per share

- 2019-06: $145.63 per share

- 2019-07: $146.72 per share

- 2019-08: $128.73 per share

- 2019-09: $140.42 per share

- 2019-10: $144.08 per share

- 2019-11: $145.71 per share

- 2019-12: $139.65 per share

- 2020-01: $122.12 per share

- 2020-02: $119.95 per share

- 2020-03: $106.63 per share

- 2020-04: $139.26 per share

- 2020-05: $144.92 per share

- 2020-06: $139.48 per share

- 2020-07: $135.90 per share

- 2020-08: $132.33 per share

- 2020-09: $122.77 per share

- 2020-10: $132.94 per share

- 2020-11: $162.81 per share

- 2020-12: $175.94 per share

- 2021-01: $195.95 per share

- 2021-02: $189.98 per share

- 2021-03: $208.62 per share

- 2021-04: $186.76 per share

- 2021-05: $185.43 per share

- 2021-06: $186.66 per share

- 2021-07: $206.51 per share

- 2021-08: $203.57 per share

- 2021-09: $198.78 per share

- 2021-10: $211.15 per share

- 2021-11: $227.58 per share

- 2021-12: $244.71 per share

- 2022-01: $207.62 per share

- 2022-02: $200.85 per share

- 2022-03: $208.95 per share

- 2022-04: $167.41 per share

- 2022-05: $163.04 per share

- 2022-06: $153.04 per share

- 2022-07: $167.36 per share

- 2022-08: $157.06 per share

- 2022-09: $144.73 per share

- 2022-10: $142.91 per share

- 2022-11: $154.61 per share

- 2022-12: $143.51 per share

- 2023-01: $147.66 per share

- 2023-02: $142.98 per share

- 2023-03: $145.69 per share

- 2023-04: $134.36 per share

- 2023-05: $147.58 per share

- 2023-06: $146.26 per share

- 2023-07: $158.24 per share

- 2023-08: $163.66 per share

- 2023-09: $161.14 per share

- 2023-10: $151.59 per share

- 2023-11: $171.19 per share

- 2023-12: $178.98 per share

- 2024-01: $183.70 per share

- 2024-02: $187.22 per share

- 2024-03: $189.59 per share

- 2024-04: $165.31 per share

- 2024-05: $168.97 per share

- 2024-06: $172.23 per share

- 2024-07: $203.64 per share

- 2024-08: $203.15 per share

- 2024-09: $220.20 per share

- 2024-10: $233.88 per share

- 2024-11: $250.35 per share

- 2024-12: $251.47 per share

- 2025-01: $297.26 per share

- 2025-02: $292.43 per share

- 2025-03: $266.27 per share

- 2025-04: $264.74 per share

- 2025-05: $285.38 per share

- 2025-06: $294.32 per share

- 2025-07: $313.42 per share

- 2025-08: $313.14 per share

- 2025-09: $323.19 per share

- 2025-10: $253.05 per share

- 2025-11: $239.16 per share

- 2025-12: $255.26 per share

- 2026-01: $275.61 per share

- 2026-02: $271.36 per share

- 2026-03: $289.33 per share

- 2026-04: $323.90 per share

- 2026-05: $383.45 per share

- 2026-06: $415.96 per share

- 2026-07: $402.57 per share

- 2026-08: $407.13 per share

- 2026-09: $445.18 per share

- 2026-10: $456.58 per share

## Annual estimated value (USD per share)

- FY2016: low $89.46 per share, central $122.49 per share, high $141.72 per share

- FY2017: low $99.79 per share, central $136.10 per share, high $157.25 per share

- FY2018: low $107.60 per share, central $146.82 per share, high $169.66 per share

- FY2019: low $109.54 per share, central $149.91 per share, high $173.42 per share

- FY2020: low $103.93 per share, central $129.03 per share, high $147.66 per share

- FY2021: low $102.00 per share, central $122.91 per share, high $141.08 per share

- FY2022: low $94.30 per share, central $109.99 per share, high $125.84 per share

- FY2023: low $100.45 per share, central $121.05 per share, high $139.12 per share

- FY2024: low $108.33 per share, central $131.86 per share, high $151.07 per share

- FY2025: low $124.19 per share, central $151.02 per share, high $172.68 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:12.164Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1048695/000104869525000157/ffiv-20250930.htm); period 2025-09-30, filed 2025-11-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.