Stock Track | F5 Inc Plunges 8.74% After-Hours on Weak Guidance and Expected Sales Disruptions

Stock Track
Oct 28

F5 Inc (FFIV) shares tumbled 8.74% in after-hours trading on Monday, despite reporting strong fourth-quarter results that beat analysts' expectations. The company's stock price decline was primarily driven by weak forward guidance and anticipated near-term sales disruptions.

For the fourth quarter, F5 reported adjusted earnings per share of $4.39, surpassing the FactSet estimate of $3.97. Revenue for the quarter came in at $810 million, also exceeding the expected $793.4 million. However, the company's outlook for the upcoming quarter and fiscal year 2026 fell short of market expectations, leading to the sharp stock price decline.

F5 provided guidance for the first quarter of fiscal 2026, projecting adjusted earnings per share between $3.35 and $3.85 on revenue of $730 million to $780 million, both below analysts' forecasts. Furthermore, the company expects fiscal 2026 adjusted EPS of $14.50 to $15.50, significantly lower than the FactSet analyst consensus of $16.25 per share. Adding to investor concerns, F5 anticipates near-term sales cycle disruptions as customers focus on assessing and remediating their environments following a recent security incident. The company also warned of potential modest impacts on its operating margins in the near term due to these disruptions.

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