Q1 2026 F5 Inc Earnings Call Transcript
Key Points
- F5 Inc (FFIV) reported a strong Q1 with 7% revenue growth, driven by 11% product revenue growth and 37% systems revenue growth.
- The company experienced minimal demand disruption despite a security incident, thanks to rapid mobilization of global sales and support teams.
- F5 Inc (FFIV) is benefiting from durable demand drivers such as hybrid multi-cloud adoption, AI investment, and demand for converged platforms.
- The EMEA region delivered exceptional 24% growth, driven by regulations and mandates for resiliency and digital sovereignty.
- F5 Inc (FFIV) is seeing strong momentum in AI-related investments, with significant growth in AI customer acquisitions and AI-related revenue.
- Software revenue declined by 8% year over year, attributed to strong results in the previous year and specific deals in the service provider space.
- The company anticipates a modest reduction in FY26 gross margin due to rising memory costs impacting product COGS in the second half.
- There is a potential risk of supply constraints in the future due to rising memory prices, despite current confidence in supply chain management.
- F5 Inc (FFIV) is facing increased operating expenses due to targeted investments in sales capacity and roadmap enhancements.
- The company is taking a measured approach to its second-half revenue guidance, reflecting potential macroeconomic uncertainties and budget finalizations.
Good afternoon, and welcome to the F5 Inc., first quarter fiscal 2026 financial results conference call. (Operator Instructions) Also, today's conference is being recorded. If anyone has any objections, please disconnect at this time.
And I'll now turn the conference over to Ms. Suzanne DuLong. Thank you, ma'am. You may begin.
Hello, and welcome. I'm Suzanne DuLong, F5's Vice President of Investor Relations. We're here to discuss our first quarter fiscal year 2026 financial results. François Locoh-Donou, F5's President and CEO; and Cooper Werner, F5's Executive Vice President and CFO, will be making prepared remarks on today's call. Other members of the F5 executive team are also here to answer questions during the Q&A session.
Today's press release is available on our website at f5.com, and an archived version of today's audio will be available through April 27, 2026. We will post the slide deck accompanying today's webcast to our IR site following this call. To access the
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