FFIV Q2 Earnings Surpass Expectations, Revenues Rise Y/Y

F5, Inc. FFIV reported second-quarter fiscal 2025 non-GAAP earnings of $3.42 per share, which surpassed the Zacks Consensus Estimate by 10.3% and came ahead of management’s guidance of $3.02-$3.14 (midpoint of $3.08). The bottom line increased 17.5% year over year.F5’s revenues of $731 million for the second quarter of fiscal 2025 surpassed the consensus mark by 2%. The top line increased 7.3% on a year-over-year basis. Revenues also came ahead of management’s guidance of $705-$725 million (midpoint of $715 million).FFIV’s Q2 2025 DetailsProduct revenues (46.1% of total revenues), which comprise the Software and Systems subdivisions, increased 12% year over year to $337.2 million. This growth was primarily driven by a robust 27% year-over-year increase in Systems revenues, which totaled $179 million.However, this was partially offset by flat Software revenues, which remained at $158 million compared to the year-ago period. Systems accounted for approximately 53.1% of total Product revenues, showing continued momentum due to demand for infrastructure upgrades.F5, Inc. Price, Consensus and EPS Surprise F5, Inc. price-consensus-eps-surprise-chart | F5, Inc. QuoteGlobal Services revenues (53.9% of total revenues) grew 3% year over year to $393.9 million, supported by sustained pricing strength implemented in prior periods.Non-GAAP gross margin for the quarter expanded 100 basis points to 83.1% from 82.1% a year ago.F5’s Balance Sheet & Cash FlowF5 ended the March-ended quarter with cash and short-term investments of $1.26 billion, up from $1.16 billion in the previous quarter. The company generated operating cash flow of $257 million during the quarter, up from $203 million reported in the previous quarter.In the fiscal second quarter, F5 repurchased shares worth $252.1 million, maintaining its commitment to return a significant portion of free cash flow to shareholders.F5 Raises Guidance for 2025F5 anticipates its fiscal 2025 revenues to grow in the range of 6.5-7.5% compared with the previously projected revenue growth of 6-7%. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $3 billion, indicating year-over-year growth of 6.5%.Non-GAAP earnings per share are now projected to grow 8-10% compared with the earlier projected earnings growth of 6.5-8.5%. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $14.33, indicating year-over-year growth of 7.2%.For third-quarter fiscal 2025, F5 expects revenue between $740 million and $760 million. The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $3 billion, indicating year-over-year growth of 6.5%.The company projected a non-GAAP EPS in the range of $3.41-$3.53 for the third quarter of fiscal 2025. The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $3.55, indicating a year-over-year increase of 5.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Zacks Rank and Stocks to ConsiderCurrently, FFIV carries a Zacks Rank #4 (Sell).Affirm AFRM, Super Micro Computer SMCI and Paycom Software PAYC are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, SMCI and ACMR sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.AFRM shares have gained 4% for the past year. The Zacks Consensus Estimate for AFRM’s full-year 2025 earnings is pegged at a loss of 6 cents per share, up by 7 cents over the past 60 days, suggesting a growth of 96.7% from the year-ago quarter’s reported figure.SMCI shares have plunged 56.4% in the past year. The Zacks Consensus Estimate for SMCI’s full-year fiscal 2025 earnings have been revised downward to $2.52 in the past seven days reflecting a year-over-year growth of 14%.PAYC shares have gained 6% over the past year. The Zacks Consensus Estimate for PAYC’s full-year 2025 earnings is pegged at $8.72 per share, implying a rise of 6.21% from the year-ago quarter’s levels.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report F5, Inc. (FFIV): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Paycom Software, Inc. (PAYC): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks