What factors drove the changes in F5's revenue and profit?

What were the key takeaways from F5's earnings call?

What is F5's gross profit margin?

What is the market's earnings forecast for F5 next quarter?

What does F5 do and what are its main business segments?

Did F5 beat or miss consensus estimates last quarter?

What guidance did F5's management provide for the next earnings period?

What is F5's latest dividend and current dividend yield?

- **Record FY25 Performance**: $3.1 billion revenue (+10%), $906M free cash flow, 83.6% gross margin. Operating profit surpasses $1B.
- **AI-Driven Growth**: Systems revenue +42% YoY, 30+ AI use case wins, 900+ XOps adopters.
- **FY26 Outlook**: 0-4% revenue growth (near-term security disruption), $14.50-$15.50 EPS. Mid-single-digit growth resuming in H2.
- **Security Investment**: Doubled security spend in FY25; maintaining aggressive posture post-breach.
- **Customer Resilience**: 90%+ of customers updated BIG-IP within 2 weeks; minimal sensitive data impact.

**【CEO Summary Section】**
- **FY25 Financial Highlights**: Revenue reached $3.1 billion (+10% YoY), operating profit exceeded $1 billion, and free cash flow was $906 million (+19% YoY). Gross margin improved to 83.6%, up 80bps YoY.
- **Security Incident Response**: F5 prioritized containment, customer updates, and rapid software patch deployment. Over 800 customers completed updates within 6 hours, with minimal disruption. A North American tech provider updated 814 devices in 6 hours.
- **AI and Hybrid Cloud Growth**: Systems revenue grew 42% YoY, driven by AI readiness, data center modernization, and competitive takeouts. F5 secured 30+ AI use case wins, including AI data delivery, runtime security, and load balancing for AI factories.
- **Customer Expansion**: 900+ customers adopted F5 XOps capabilities (vs. 20 in FY24). 26% of top 1,000 customers now use F5 Distributed Cloud Services (up from 17% in FY24).

**【CFO Financial Commentary】**
- **Q4 FY25 Results**: Revenue $810 million (+8% YoY), Non-GAAP EPS $4.39 (+20% YoY). Gross margin 84.3% (up 138bps YoY). Free cash flow $906 million (+19% YoY).
- **FY26 Guidance**: Revenue growth 0-4% (mid-single-digit long-term trend). Non-GAAP EPS $14.50-$15.50. FY26 gross margin 83-83.5%, operating margin 33.5-34.5%.
- **Share Buybacks**: 55% of FY25 free cash flow ($1.36 billion) used for buybacks. Q4 repurchased $125 million in shares.
- **Security Investment**: FY25 security spend doubled; FY26 will maintain aggressive investment to enhance product and customer security.

**【Q&A Highlights】**
- **Security Impact on Sales**: Near-term disruption expected in Q1-Q2 FY26, with normalization in H2. 70%+ of revenue recurring, limiting impact. Customer focus on upgrades may delay new projects.
- **Systems Business Growth**: 2/3 of FY25 systems growth from tech refresh, 1/3 from AI readiness. Over half of installed base still on legacy systems, driving long-term refresh opportunity.
- **Software Trends**: Term-based subscriptions grew 18% YoY, SaaS ARR +21%. FY26 SaaS growth to resume post-legacy transition. XOps adoption accelerated (90% expansion rate among distributed cloud customers).
- **Customer Feedback**: 90%+ of customers completed BIG-IP updates within 2 weeks. Minimal sensitive data exfiltrated; most customers deemed data non-critical.
- **Competitive Position**: F5 ADSP uniquely combines high-performance traffic management with advanced security across hybrid/multi-cloud. 70% of top 1,000 customers now use multiple F5 product families.


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