F5 Inc: Key debates ahead of F5’s analyst and investor meeting

研报英文原文证据摘录

F5 Inc: Key debates ahead of F5’s analyst and investor meeting

Accessible version

F5 Inc

Key debates ahead of F5’s analyst and

investor meeting

Reiterate Rating: UNDERPERFORM | PO: 300.00 USD | Price: 393.63 USD

Growth may continue into 2H26, but is it sustainable? 26 May 2026

F5 is hosting an analyst and investor meeting on Thursday, May 28th. We see a better Equity

near-term growth outlook and increase our PO from $250 to $300, while reiterating

Underperform. Systems refresh and improving Software trends should support growth

Key Changesthroughout the remainder of FY26. However, looking at FY27 and beyond, we view

Systems strength as largely refresh-driven with limited forward growth, and Software (US$) Previous Current

growth as a function of ASC-606 revenue recognition, rather than fundamental Price Obj. 250.00 300.00

improvements in demand. The stock is up 37% on a TTM basis, underperforming

Networking peers, such as Cisco which is up 89%. F5 stock is trading at a ~22x forward Tal Liani

Research Analyst

P/E multiple, above historical peak, yet we still don’t see signs of sustainable growth. BofAS

+1 646 855 5107

Systems strength likely unsustainable tal.liani@bofa.com

Tomer Zilberman

The outsized 30% Systems growth last quarter is likely unsustainable, in our view, driven Research Analyst

by the 2027 End of Service (EOS) cycle for VIPRION and iSeries, which represent 50%+ BofAS +1 646 855 3203

of the install base. Average quarterly Systems revenue rose from ~$150mn in 2023– tomer.zilberman@bofa.com

1H25 to ~$220mn in 1H26, with the refresh cycle supporting near-term growth and Kevin Niederpruem

higher software attach. However, the comps are becoming more challenging, going from ResearchBofAS Analyst

22% Systems growth in 1H25 to 41% in 2H25.