F5’s fourth-quarter results for fiscal 2026 exceeded market expectations, but its share price plunged about 20% in trading on 28 October. The expected slowdown in growth in the coming fiscal year was cited as the background.
Fourth-quarter adjusted EPS was $4.42, above the market estimate of $4.26. Revenue was $917.4 million, exceeding the estimate of $884.0 million. Year-on-year growth reached 13%. Revenue was divided between products and services, which increased 23% and 3%, respectively.
Management said it expected overall revenue growth of 8–9% in fiscal 2027. Software growth is expected to accelerate from 8% in 2026 to the double digits in 2027, while systems are expected to grow faster in the first half than in the second half. Management also described replacement demand as cyclical.
Fourth-quarter operating cash flow was $1,180 million, down from $2,080 million a year earlier. The decline was attributed to increased inventory and advance payments to suppliers.
Although the results were strong, selling prevailed in the market on expectations of slower growth in the coming fiscal year, sending the share price sharply lower. Regardless of whether the strong results had already been priced in, the outlook for profit margins and inventory policy in the next period became key market focuses.