F5 Earnings Outperform as Software, AI Investments Pay Off

FFIV delivers cloud computing products and solutions across cloud environments. The company offers distributed cloud services, application security, networking, and other application management services. It serves customers around the world, including businesses, service providers, governments, and consumer-focused enterprises. The company’s subscription-based software is being rapidly adopted by customers, and AI opportunities are proving to be fruitful.

As for earnings, FFIV’s first-quarter fiscal 2025 earnings showed big revenue growth of 11%, to $766 million. Software and product sales were the big drivers, with software subscription revenue up 30% on a year-over-year basis. FFIV’s non-GAAP per-share earnings were $3.84, which exceeded analysts’ expectations by $0.43. Its full-year guidance is now calling for a top end of 7% revenue growth and 8.5% non-GAAP EPS growth.

It’s no wonder FFIV shares are up 23% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying F5 Shares

Institutional volumes reveal plenty. In the last year, FFIV has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in FFIV shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with F5.

F5 Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, FFIV has had strong profits and earnings growth over the years:

• Profit margin (+20.1%)
• 3-year earnings growth rate (+22.6%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +7.7%.

Now it makes sense why the stock has been powering to new heights. FFIV has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

F5 has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when FFIV was a top pick…sending shares upwards:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

F5 Price Prediction

The FFIV rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in FFIV at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.