F5FRA:FFV +0.58%81 Gross Margin % is 81.41% as of Mar. 2026, which is 1% below its 10-year median of 82.03. GuruFocus rates FRA:FFV with a GF Score™ of 81/100 and a GF Value™ of €229.08 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,680 Software companies, F5 ranks better than 89.66% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. F5's Gross Profit for the
three
months ended in Mar. 2026 was €572 Mil. F5's Revenue for the
three
months ended in Mar. 2026 was €702 Mil. Therefore, F5's Gross Margin % for the quarter that ended in Mar. 2026 was 81.41%.
The historical rank and industry rank for F5's Gross Margin % or its related term are showing as below:
FRA:FFV'
s Gross Margin % Range Over the Past 10 Years
Min: 78.91 Med: 82.03 Max: 84.1
Current: 81.54
During the past 13 years, the highestGross Margin % of F5 was 84.10%. The lowest was 78.91%. And the median was 82.03%.
FRA:FFV's Gross Margin % is ranked better than 89.66% of 2680
companies
in the Software industry
Industry Median: 40.445
vs FRA:FFV: 81.54
F5 had a gross margin of 81.41% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for F5 was -0.40% per year.
F5 (FRA:FFV) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
F5 had a gross margin of 81.41% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
F5 Gross Margin % Related Terms
F5 Gross Margin % Historical Data
* Premium members only.
The historical data trend for F5's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:FFV vs CPAY, OKTA, ZS: Gross Margin % Comparison
For the Software - Infrastructure subindustry, F5's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
F5 Gross Margin % vs Software Industry
For the Software industry and Technology sector, F5's Gross Margin % distribution charts can be found below:
* The bar in red indicates where F5's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
F5 (FRA:FFV) has a Gross Margin % of 81.41% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on F5 and its competitors. This is near median its historical median of 82.03. Over the past decade, F5's Gross Margin % has ranged from 78.91 to 84.10. According to the industry distribution chart, F5 ranks #277 out of 2680 companies in the Software industry, placing it in the top 10.3%.
Is F5's Gross Margin % too high?
F5's current Gross Margin % of 81.41% is near median its 10-year median of 82.03. Over the past 10 years, this metric has ranged from a low of 78.91 to a high of 84.10. The Software industry median Gross Margin % is 40.45. F5's value of 81.41% is 101.3% above this industry median. Based on the distribution chart, F5 ranks #277 out of 2680 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, F5 has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does F5's Gross Margin % compare to CPAY and OKTA?
According to the Software industry distribution chart, F5 ranks #277 out of 2680 companies for Gross Margin %. This places F5 in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. F5's value of 81.41% is 101.3% above this benchmark. Historically, F5's own Gross Margin % has ranged from 78.91 to 84.10 over the past decade. While the company's 10-year median is 82.03 vs. the industry median of 40.45, F5 has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. F5's current Gross Margin % of 81.41% is 101.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on F5 and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. F5's current Gross Margin % is 81.41%, which is near median its own 10-year median of 82.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is F5 stock overvalued right now?
Based on GuruFocus' analysis, F5 (FRA:FFV) is currently considered Significantly Overvalued. The stock's GF Value™ is €229.08, compared to a current price of €362.80 — trading 58.4% above its estimated fair value. The current Gross Margin % is 81.41%, which is near median its 10-year median of 82.03 and 101.3% above the Software industry median of 40.45. F5's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For F5 (FRA:FFV), the current Gross Margin % is 81.41% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is F5 (FRA:FFV) Overvalued in 2026?
Based on GuruFocus' analysis, F5 stock appears to be overvalued.
The current stock price of €362.80 is trading 58.4% above its estimated GF Value™ of €229.08.
GuruFocus considers F5 to be Significantly Overvalued.
Key valuation signals for FRA:FFV:
Gross Margin %: 81.41% (near median its 10-year median of 82.03)
GF Value™: €229.08 vs. price of €362.80 (58.4% above fair value)
Industry Position: 101.3% above the Software median (#277 of 2680)
No single metric tells the full story. See the FRA:FFV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
F5 is a market leader in the application delivery controller market. The company sells products for security, application performance, and automation. Its three customer verticals are enterprises, service providers, and government entities. Revenue is evenly split between its services business and products business with revenue trending toward products due to software adoption. The Seattle-based firm was incorporated in 1996, and went public in 1999.
81GF Score
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