Shares of F5 Inc (FFIV) tumbled 10.09% in pre-market trading on Tuesday, following the company's release of its fourth-quarter results and weak forward guidance, largely impacted by a recent cybersecurity breach. Despite reporting strong Q4 earnings that beat analyst expectations, investors focused on the company's cautious outlook for the coming fiscal year.

F5, a leading provider of cybersecurity solutions, disclosed that hackers had gained "long-term, persistent access" to certain company systems, including the source code for one of its key cybersecurity services. This breach, which triggered alarm over potential risks to U.S. and UK government systems, is expected to weigh heavily on the company's near-term performance. CEO François Locoh-Donou stated, "F5 anticipates some near-term disruption to sales cycles as customers focus on assessing and remediating their environments following the recent security incident."

For fiscal year 2026, F5 projected revenue growth of 0% to 4%, significantly below analysts' expectations of 4.8% growth. The company also provided a conservative first-quarter outlook, forecasting revenue between $730 million and $780 million, which falls short of the $791 million consensus estimate. Adding to investor concerns, several analysts, including JP Morgan, Barclays, and RBC Capital, have cut their price targets for F5 stock. The combination of weak guidance, cybersecurity concerns, and analyst downgrades has led to the sharp decline in F5's stock price, as investors reassess the company's growth prospects in light of these challenges.