F5's Q2 2025 Earnings Call: Unraveling Key Contradictions in Hardware and Software Growth Strategies

Hardware growth and market trends, software growth strategy and renewal approach, hardware revenue growth drivers, service provider business trends, and software revenue growth expectations are the key contradictions discussed in F5's latest 2025Q2 earnings call.



Revenue Growth and Strong Hardware Performance:
- F5, Inc. reported revenue growth of 12% for Q3 2025, reaching $780 million.
- The strongest growth was seen in hardware revenue, which increased by 39%, driven by data center modernization and increased capacity requirements.

Software Revenue and Subscription Expansion:
- F5's software revenue grew by 16% year-over-year, driven by hybrid multi-cloud architecture adoption and subscription renewals and expansions.
- Subscription-based software revenue grew by 19%, representing 89% of total software revenue.

Regional Growth and Customer Demand:
- Revenue from the Americas grew by 13%, representing 55% of total revenue, while APAC grew by 21%, accounting for 19%.
- Growth was driven by customer demand for data center modernization and hybrid multi-cloud architectures.

AI and Platform Strategy:
- F5's application delivery and security platform (ADSP) won several deals, consolidating multiple delivery and security solutions for customers.
- The company continues to see strong interest in its AI data delivery and security capabilities, with several AI-related use case wins reported.