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Q3FY26 Results Published July 27, 2026 PE RIO D EN DI NG June 30, 2026 We deliver and secure every app. F5 specializes in application delivery and security. Our solutions are backed by three decades of expertise to ensure that every app is fast, available, secure, and ready for the AI -era.
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© 2026 F52 T oday’ s speakers François Locoh-Donou Chairman, President, & CEO Business Overview Cooper Werner EVP & Chief Financial Officer Results & Business Outlook
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© 2026 F53 Forward-looking statements This presentation and the remarks that accompany it contain forward-looking statements including, among other things, that F5’s eight consecutive quarters of double-digit product growth reflect the mission-critical role F5 plays at the application delivery and security layer of today’s hybrid multicloud and AI-driven enterprise infrastructure, the world runs on applications and the threats targeting them have never been more sophisticated, AI has empowered attackers and compressed the time between vulnerability discovery and exploitation, F5’s response is a continues defense model built for this new reality, F5 is using AI to empower our customers to stay ahead of threats across every environment they operate in by identifying risk earlier, protecting applications at runtime, and delivering hardened software faster, the Company’s future financial performance including revenue growth, earnings growth, future customer demand, and the performance and benefits of the Company's products. These, and other statements that are not historical facts, are forward-looking statements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors. Such forward-looking statements involve risks and uncertainties, as well as assumptions and other factors that, if they do not fully materialize or prove correct, could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such factors include, but are not limited to: customer acceptance of offerings; disruptions to the global supply chain resulting in inability to source required parts for F5’s products or the ability to only do so at greatly increased prices thereby impacting our revenues and/or margins; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; F5’s ability to successfully integrate acquired businesses’ products with F5 technologies; the ability of F5’s sales professionals and distribution partners to sell new solutions and service offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into F5’s markets, and new product and marketing initiatives by our competitors; increased sales discounts; the business impact of the acquisitions and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of completion of acquisitions; uncertain global economic conditions which may result in reduced customer demand for our products and services and changes in customer payment patterns; litigation involving patents, intellectual property, shareholder and other matters, and governmental investigations; potential security flaws in the Company’s networks, products or services; cybersecurity attacks on its networks, products or services; natural catastrophic events; a pandemic or epidemic; F5’s ability to sustain, develop and effectively utilize distribution relationships; F5’s ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5’s ability to expand in international markets; the unpredictability of F5’s sales cycle; the ability of F5 to execute on its share repurchase program including the timing of any repurchases; future prices of F5’s common stock; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K and other documents that we may file or furnish from time to time, which could cause actual results to vary from expectations. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in F5’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. All forward- looking statements in this press release are based on information available as of the date hereof and qualified in their entirety by this cautionary statement. F5 assumes no obligation to revise or update these forward-looking statements.
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© 2026 F54 GAAP to non-GAAP presentation In addition to financial information prepared in accordance with U.S. GAAP, this presentation also contains adjusted financial measures that we believe provide investors and management with supplemental information relating to operating performance and trends that facilitate comparisons between periods and with respect to projected information. These adjusted financial measures are non-GAAP and should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S. GAAP. We typically exclude certain GAAP items that management does not believe affect our basic operations and that do not meet the GAAP definition of unusual or non-recurring items. Other companies may define these measures in different ways. Further information relevant to the interpretation of adjusted financial measures, and reconciliations of these adjusted financial measures for historical data to the most comparable GAAP measures, may be found on F5’s website at www.f5.com in the “Investor Relations” section. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis due to the high variability and low visibility with respect to the charges which are excluded from these non-GAAP measures. For additional information, please see the appendix of this presentation.
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© 2026 F55 Business overview François Locoh-Donou
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© 2026 F56 GAAP & non-GAAP results Q3FY26 Q3FY25 Revenue $865M $780M Gross profit $712M $632M Gross margin 82.2% 81.0% Operating profit $213M $196M Operating margin 24.7% 25.2% Tax rate 8.0% 10.8% Net income $208M $190M EPS $3.62 $3.25 Q3FY26 Q3FY25 Revenue $865M $780M Gross profit $728M $649M Gross margin 84.2% 83.1% Operating profit $303M $267M Operating margin 35.0% 34.3% Tax rate 12.4% 14.4% Net income $272M $243M EPS $4.73 $4.16 GAAP results Non-GAAP results See appendix for GAA P to non -GAAP reconciliation
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© 2026 F57 Q3FY26 performance highlights See appendix for GAA P to non -GAAP reconciliation. 11% Total revenue growth Y/Y 19% Product revenue growth Y/Y 7% Software revenue growth Y/Y 14% Non-GAAP EPS growth Y/Y8 Consecutive quarters of double-digit product revenue growth 32% Systems revenue growth Y/Y
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© 2026 F58 F5 sits at the front door of the world’s most critical applications F5 targets this complexity, simplifying and unifying application delivery and security across hybrid multicloud environments. We sit at the front door of the world’s most critical applications, delivering and securing every app, every API. It’s a position we’ve earned over nearly three decades, and one we are strengthening every day. AI is accelerating everything. More traffic. More APIs. More distributed architectures. And a dramatically larger attack surface. The complexity our customers are navigating has never been greater .
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© 2026 F59 Expanding threat landscape accelerates demand for AI-powered security Hybrid multicloud accelerates workload distribution AI inference accelerates demand for app security and delivery F5 is at the intersection of three secular megatrends
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© 2026 F510 Our Q3FY26 results demonstrate F5 is delivering revenue growth while operating with discipline +14% Non-GAAP EPS growth Y/Y 35% Non-GAAP operating margin Operating with disciplineDriving revenue growth We are converting hybrid multicloud adoption into expansion opportunities, competitive displacements, digital sovereignty wins, and platform consolidation wins. We are capitalizing on heightened demand for best-in-class application and API security . We are building AI momentum , with another strong quarter of wins across AI data delivery, AI runtime security and AI factory load balancing. 11% Revenue growth 19% Product growth
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© 2026 F511 We are raising our FY26 outlook 9% to 10% FY26 revenue growth Y/Y +7% to 8% FY26 revenue growth Y/Y Approximately Previous outlook Updated outlook
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© 2026 F512 F5 is at the intersection of three secular megatrends Hybrid multicloud adoption AI inference inflection Threat landscape expansion Enterprises are building for flexibility across every environment Organizations are connecting apps and APIs to AI models and inference calls are becoming a part of how applications run Attacks are increasingly AI- and agentic-powered translating to higher volumes with greater variation
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© 2026 F513 Hybrid multicloud adoption is fueling multiple growth drivers for F5 Easier to operate at scale F5 replacing point products with a unified approach Improving performance and security Unmatched breadth and depth across on-prem, software, and SaaS Investment in hybrid multicloud translating into market share gains Refresh + expansion New use case attach, expanding footprint and wallet share Capacity expansion & higher perf systems We are converting hybrid multicloud adoption into expansion opportunities, digital sovereignty wins, competitive displacements , and platform consolidation wins. Digital sovereignty Platform consolidationCompetitive displacementData center buildout & sovereignty
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© 2026 F514 Hybrid multicloud adoption is fueling multiple growth drivers for F5 Competitive DisplacementDigital sovereignty • European government agency sought to standardize delivery and security across a growing multicloud environment while keeping select apps on-premises for privacy and compliance. • F5 delivered a sovereign-by-design architecture with consistent delivery , stronger security, and simpler operations across their multi-cloud environment. • Refreshed and expanded BIG-IP footprint and added Distributed Cloud Services, including AI- powered WAF to automate policy management and advance threat protection. • F5 displaced an incumbent at a Fortune 100 global enterprise technology provider looking to strengthen the delivery and security layer in front of its S3-compatible cloud storage service across 45 data centers worldwide. • BIG-IP selected for its ability to deliver the availability, resilience, and security required to support their AI and data-intensive workloads at global scale. Technology providerGovernment agency We are converting hybrid multicloud adoption into expansion opportunities, digital sovereignty wins, competitive displacements , and platform consolidation wins. • Energy and utilities provider with 1,000+ mission critical apps on F5 scaled its BIG-IP footprint in a major overhaul of its cloud infrastructure spanning three regions and multiple data centers. • Customer repatriated workloads on premises and onto BIG-IP after cloud instability threatened critical services. • F5 reduced third-party dependency , and restored confidence in delivery infrastructure reliability . Energy & utilities Data center buildout
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© 2026 F515 F5 is at the intersection of three secular megatrends Enterprises are building for flexibility across every environment Hybrid multicloud adoption Organizations are connecting apps and APIs to AI models and inference calls are becoming a part of how applications run AI inference inflection Attacks are increasingly AI- and agentic-powered translating to higher volumes with greater variation Threat landscape expansion
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© 2026 F516 Threat landscape expansion is creating tailwinds for F5 As the front lines of cyber defense shift to the application layer — with app attacks surging 140% from 2022 to 2025 — the need for F5's advanced application and API security has never been greater • A multi-brand telecommunications provider replaced a fragmented collection of security tools with Distributed Cloud Services. • The customer consolidated web application and API protection, bot defense, and DDoS mitigation on F5, displacing both a SaaS-only competitor and a cloud-native toolset. • F5's automated API discovery aligned with the customer's shift to microservices, reducing latency and keeping sensitive traffic off the public internet. • F5’s unified management layer lowered operational overhead, supporting the customer's cost-reduction goals and establishing F5 as an always-on security layer across their digital operations. • While pursuing a hybrid cloud strategy , a multinational healthcare company identified critical security gaps with their incumbent provider . • Following a competitive evaluation, Distributed Cloud Services displaced the incumbent, providing web application and API protection, DDoS mitigation, and bot defense on a unified platform. • Since deployment, threats that previously evaded detection are now being identified and blocked. • F5 improved security outcomes while reducing operational costs by consolidating multiple functions. Telecommunications provider Multinational healthcare company
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© 2026 F517 Frontier AI models have escalated the threat level and early movers are already strengthening defenses Frontier AI models are creating a new level of urgency that we are capitalizing on with F5's advanced application and API security • A major European retail banking institution accelerated plans to upgrade its application security infrastructure as the potential for AI-driven attacks escalated. • F5's AI-powered approach, including machine learning-based threat detection, granular per-application policy controls, and behavioral bot defense, differentiated F5 from their incumbent provider . • They are deploying Distributed Cloud Services as the front door to their application environments, creating a consistent, scalable on-premises bot defense architecture. • This foundation can be extended to every new environment they deploy , mitigating both agentic and traditional bot attacks. • A large financial institution and longstanding F5 customer , accelerated its application security strategy amidst rising AI-driven attacks and zero-day vulnerabilities. • The customer doubled down on F5 as its strategic security vendor, deploying our AI-powered WAF to automate threat detection and accelerate virtual patching at scale. Retail banking institution Financial institution
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© 2026 F518 F5 is at the intersection of three secular megatrends Enterprises are building for flexibility across every environment Hybrid multicloud adoption Organizations are connecting apps and APIs to AI models and inference calls are becoming a part of how applications run AI inference inflection Attacks are increasingly AI- and agentic-powered translating to higher volumes with greater variation Threat landscape expansion
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© 2026 F519 AI inference inflection is accelerating demand for application delivery and security across AI use cases • A leading autonomous infrastructure had already repatriated AI training data from public cloud to on-premises data centers, with F5 deployed in front of their AI storage environment to improve latency . • As data volumes and throughput demands grew, they selected F5 over a competitor , expanding our role as the trusted traffic layer between storage and compute and simplifying connectivity and storage sharing across their data centers. • U.S.-based professional sports league was rolling out AI-powered apps to analyze highly sensitive data, including player health information and team strategy insights. • They deployed AI Guardrails and AI Red T eam to validate apps before launch and defend them at runtime, standardizing on F5 as their single trusted vendor. • A service provider selected F5 to power its sovereign AI factory , purpose-built to deliver GPU as-a-Service and AI model as-a-Service. • They deployed BIG-IP Next for Kubernetes, Distributed Cloud Services, and NGINX, enabling secure multi-tenancy , traffic segmentation, token governance, and large language model API endpoint protection. Autonomous systems manufacturer Service providerProfessional sports league AI RUNTIM E SECUR ITY AI FACTORY LOAD BAL ANCI NGAI DATA DELIVERY The AI inference inflection is driving demand for F5, both indirectly, as customers expand hybrid multicloud deployments , and directly, through our three AI use cases: AI data delivery, AI runtime security and AI factory load balancing. F5 is accelerating secure AI data pipelines, ensuring storage, networking, and data delivery , and keeping AI clusters fully utilized across hybrid and multicloud deployments F5 is safeguarding AI applications, APIs, and models from abuse, data leaks, and attacks like prompt injection and delivering real-time threat defense, red teaming models, and robust guardrails. F5 is optimizing traffic and GPU utilization both across and within AI factories, increasing token throughput, reducing time-to-first token, and lowering per-token costs.
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© 2026 F520 Innovation at F5
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© 2026 F521 Frontier AI has fundamentally altered both sides of the security equation Attackers can use AI to discover vulnerabilities, develop exploits, and vary attacks at a speed and scale that was previously impossible, compressing the time between vulnerability discovery and exploitation and forcing every enterprise to rethink how to protect its applications. Customers increasingly need runtime protection: the ability to detect malicious behavior and stop attacks while their applications, APIs, models, and agents are running.
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© 2026 F522 We are innovating to lead the next generation of capabilities for customers AI-powered capabilities in Distributed Cloud WAF • Uses a layered detection engine to assess the intent and risk of each request • Moving customers beyond static signatures and manual policy tuning Hardened software releases • New monthly cadence • Applying advanced and preview frontier models to vulnerability discovery and remediation • Finding and fixing issues faster Fleet-management capabilities via F5 Insight • F5 Insight gives customers visibility into software versions, security posture and update readiness across their BIG -IP estates • Guided workflows simplify upgrades and patching
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© 2026 F523 Q3FY26 results Cooper Werner
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© 2026 F524 $392 $396 $412 $401 $402 $389 $414 $410 $411 $463 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Global Services Product Revenue mix $780 $810 $822 Consecutive quarters of double-digit product growth 8 Total revenue growth 11% Product revenue growth 19% Revenue $ in millions Totals may not add due to rounding. Year/Year change $812 $865 +1% Y/Y +2% Y/Y +4% Y/Y +2% Y/Y +3% Y/Y +26% Y/Y +16% Y/Y +11% Y/Y +22% Y/Y +19% Y/Y
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© 2026 F525 $181 $186 $218 $226 $240 $208 $229 $192 $184 $223 $0 $100 $200 $300 $400 $500 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Systems Software Product revenue mix Year/Year change +7% Software +32% Systems Revenue $ in millions Totals may not add due to rounding. $389 $414 $410 $411 $463
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© 2026 F526 $185 $198 $164 $165 $201 $23 $30 $27 $19 $22 $0 $50 $100 $150 $200 $250 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Subscription Perpetual licenses $229 $208 $192 $184 $223 Software revenue mix Totals may not add due to rounding. Subscription software revenue includes term subscriptions, both multi -year and annual, as well as SaaS & managed services and utility -based revenue.. 9% Software subscription revenue growth Y/Y Revenue $ in millions 90% of Q3FY26 total software revenue from subscriptions
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© 2026 F527 Recurring revenue (subscriptions, SaaS & managed services, and maintenance) 31% 69% Recurring Non-recurring Q3FY26 $594M Recurring revenue Recurring revenue includes term subscriptions, SaaS & managed services, utility -based revenue and the maintenance portion of our global services revenue.
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© 2026 F528 Revenue contribution by geography 55% 57% 53% 50% 55% 26% 26% 31% 32% 30% 19% 17% 16% 18% 15% Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Americas EMEA APAC -11% Growth APAC +27% Growth EMEA +11% Growth Americas Y/Y growth by region Q3FY26 Totals may not add to 100% due to rounding.
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© 2026 F529 Customer verticals as a % of product bookings 70% 73% 64% 66% 71% 15% 19% 23% 24% 19% 15% 8% 13% 9% 11% Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Enterprise Government Service providerTotals may not add to 100% due to rounding. 7% from U.S. Federal included
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© 2026 F530 Non-GAAP gross and operating margins 34.3% 37.0% 38.2% 33.8% 35.0% 10.0% 20.0% 30.0% 40.0% Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 83.1% 84.3% 83.8% 83.7% 84.2% 60.0% 70.0% 80.0% 90.0% Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Non-GAAP gross margin Non-GAAP operating margin % of revenue % of revenue See appendix for GAA P to non -GAAP reconciliation
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© 2026 F531 $4.16 $4.39 $4.45 $3.90 $4.73 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 +14% Y/Y Non-GAAP net income and EPS EPS reflects 12.4% Q3FY26 and 14.4% Q3FY25 non-GAAP effective tax rate $243 $257 $259 $223 $272 $0 $100 $200 $300 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Non-GAAP net income Non-GAAP EPS $ in millions See appendix for GAA P to non -GAAP reconciliation +12% Y/Y
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© 2026 F532 $274 $192 $149 $348 $281 $0 $100 $200 $300 $400 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Cash flow from operations and free cash flow $282 $208 $159 $366 $316 $0 $100 $200 $300 $400 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Cash flow from operations Free cash flow $ in millions See appendix for GAA P to non -GAAP reconciliation
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© 2026 F533 Cash and investments $1,442 $1,360 $1,218 $1,464 $1,628 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 $ in millions
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© 2026 F534 $1,957 $1,999 $2,062 $2,118 $2,193 $0 $500 $1,000 $1,500 $2,000 $2,500 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Deferred revenue +12% Y/Y $ in millions Key insights Deferred revenue consists predominantly of global services maintenance renewals and also includes term-based software subscriptions.
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© 2026 F535 We are consistently returning cash to shareholders via share repurchases $500 $350 $500 $500 $500 $0 $100 $200 $300 $400 $500 $600 FY22 FY23 FY24 FY25 FY26 YTD Committed buyback level FY22 – FY25 Share repurchases ($ in millions) 64% of FY26 YTD free cash flow* used toward repurchases *Free cash flow defined as cash flow from operations less capital expenditures Key insights • We repurchased $100 million in FFIV shares during Q3FY26. • We have used 64% of our $778 million FY26 YTD free cash flow* for share repurchases. • We are committed to using at least 50% of our annual free cash flow for share repurchases. • As of June 30, 2026, there was $422 million remaining under our authorized stock repurchase program.
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© 2026 F536 Business outlook Cooper Werner
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© 2026 F537 Three forces are reshaping how our customers operate Enterprises are building for flexibility across every environment Hybrid multicloud adoption Organizations are connecting apps and APIs to AI models and inference calls are becoming a part of how applications run AI inference inflection Attacks are increasingly AI- and agentic-powered translating to higher volumes with greater variation Threat landscape expansion
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© 2026 F538 Our Q4FY26 outlook Q4FY26 outlook Total revenue $870 to $890M Non-GAAP gross margin 83% to 84% Non-GAAP operating expenses $430 to $442M Share-based compensation $68 to $70M Non-GAAP EPS $4.14 to $4.26
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© 2026 F539 FY25A FY26 outlook Total revenue $3.1B 10% growth ~9% to 10% growth (from 7% to 8% growth previously) Non-GAAP gross margin 83.6% 83.5% to 84.0% Non-GAAP operating margin 35.2% 34.5% to 35.5% Effective non -GAAP tax rate 17.8% 18% to 19% (from 20% to 21% previously) Non-GAAP EPS $15.81 18% growth $17.21 to $17.33 (from $16.25 to $16.55 previously) Capital return as % of annual free cash flow* 55% At least 50% of annual FCF* Our updated FY26 outlook *Free cash flow (FCF) defined as cash flow from operations less capital expenditures
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© 2026 F540 Conclusion François Locoh-Donou
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© 2026 F541 Complete delivery and security for every app Deployable anywhere and in any form factor AI-enhanced operations with unified console cross NetOps, SecOps, DevOps and PlatOps ADSP open partner ecosystem F5 ADSP delivers and secures every app and every API across on-premises, cloud and edge environments © 2026 F541
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© 2026 F542 Appendix
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© 2026 F543 GAAP to non-GAAP reconciliation Net revenues…………………………………………….……………………………………………………………………………………………865,077$ 780,370$ 2,499,242$ 2,277,982$ Gross profit and gross margin: GAAP gross profit and gross margin…………………………………………….……………………………………………………………………………………………711,513$ 82.2% 631,742$ 81.0% 2,042,993$ 81.7% 1,847,885$ 81.1% Adjustments to gross profit and gross margin: Stock-based compensation…………………………………………….……………………………………………………………………………………………6,905$ 0.8% 7,408$ 0.9% 21,204$ 0.8% 22,201$ 1.0% Amortization and impairment of purchased intangible assets…………………………………………….……………………………………………………………………………………………9,152 1.1% 9,438 1.2% 30,432 1.2% 28,005 1.2% Facility-exit costs…………………………………………….……………………………………………………………………………………………121 0.0% 118 0.0% 303 0.0% 679 0.0% Acquisition-related charges…………………………………………….……………………………………………………………………………………………- - - - - - 0.0% Cyber incident costs…………………………………………….……………………………………………………………………………………………770 0.1% - - 2,416 0.1% - - Non-GAAP gross profit and gross margin…………………………………………….……………………………………………………………………………………………728,461$ 84.2% 648,706$ 83.1% 2,097,348$ 83.9% 1,898,770$ 83.4% Income from operations and operating margin: GAAP income from operations and operating margin…………………………………………….……………………………………………………………………………………………213,267$ 24.7% 196,317$ 25.2% 606,472$ 24.3% 560,296$ 24.6% Adjustments to income from operations and operating margin: Stock-based compensation…………………………………………….……………………………………………………………………………………………65,534$ 7.6% 57,451$ 7.4% 193,535$ 7.7% 174,243$ 7.6% Amortization and impairment of purchased intangible assets…………………………………………….……………………………………………………………………………………………9,619 1.1% 10,250 1.3% 32,523 1.3% 30,488 1.3% Facility-exit costs…………………………………………….……………………………………………………………………………………………1,224 0.1% 1,243 0.2% 3,077 0.1% 6,727 0.3% Acquisition-related charges…………………………………………….……………………………………………………………………………………………10,064 1.2% 2,032 0.3% 28,902 1.2% 3,937 0.2% Cyber incident costs…………………………………………….……………………………………………………………………………………………2,978 0.3% - - 26,503 1.1% - - Restructuring charges…………………………………………….……………………………………………………………………………………………(30) 0.0% - - (388) 0.0% 11,321 0.5% Non-GAAP income from operations and operating margin…………………………………………….……………………………………………………………………………………………302,656$ 35.0% 267,293$ 34.3% 890,624$ 35.6% 787,012$ 34.5% Net income: GAAP net income…………………………………………….……………………………………………………………………………………………208,208$ 189,912$ 536,017$ 501,887$ Adjustments to net income: Stock-based compensation…………………………………………….……………………………………………………………………………………………65,534$ 57,451$ 193,535$ 174,243$ Amortization and impairment of purchased intangible assets…………………………………………….……………………………………………………………………………………………9,619 10,250 32,523 30,488 Facility-exit costs…………………………………………….……………………………………………………………………………………………1,224 1,243 3,077 6,727 Acquisition-related charges…………………………………………….……………………………………………………………………………………………10,064 2,032 28,902 3,937 Cyber incident costs…………………………………………….……………………………………………………………………………………………2,978 - 26,503 - Insurance recoveries from cyber incident………........................................................... (5,309) - (5,309) - Restructuring charges…………………………………………….……………………………………………………………………………………………(30) - (388) 11,321 Tax effects related to above items…………………………………………….……………………………………………………………………………………………(20,344) (17,647) (60,957) (57,296) Non-GAAP net income…………………………………………….……………………………………………………………………………………………271,944$ 243,241$ 753,903$ 671,307$ Net income per share - diluted: GAAP net income per share — diluted …………………………………………….……………………………………………………………………………………………3.62$ 3.25$ 9.29$ 8.54$ Adjustments to GAAP net income per share — diluted: Stock-based compensation…………………………………………….……………………………………………………………………………………………1.14$ 0.98$ 3.36$ 2.96$ Amortization and impairment of purchased intangible assets…………………………………………….……………………………………………………………………………………………0.17 0.18 0.56 0.52 Facility-exit costs…………………………………………….……………………………………………………………………………………………0.02 0.02 0.05 0.11 Acquisition-related charges…………………………………………….……………………………………………………………………………………………0.17 0.03 0.50 0.07 Cyber incident costs…………………………………………….……………………………………………………………………………………………0.05 - 0.46 - Insurance recoveries from cyber incident………........................................................... (0.09) - (0.09) - Restructuring charges…………………………………………….……………………………………………………………………………………………(0.00) - (0.01) 0.19 Tax effects related to above items…………………………………………….……………………………………………………………………………………………(0.35) (0.30) (1.06) (0.97) Non-GAAP net income per share — diluted …………………………………………….……………………………………………………………………………………………4.73$ 4.16$ 13.07$ 11.42$ Weighted average shares — diluted …………………………………………….……………………………………………………………………………………………57,550 58,492 57,674 58,773 Note: Numbers and percentages are rounded for presentation purposes and may not foot. GAAP to Non-GAAP Reconciliation (unaudited, in thousands, except percentages and per share amounts) F5, Inc. 2026 2025 2026 2025 Three Months Ended June 30, Nine Months Ended June 30,
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© 2026 F544 GAAP to non-GAAP reconciliation (continued) The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are outlined below: Stock-based compensation. Stock-based compensation consists of expense for stock options, restricted stock, and employee stock purchases through the Company’s Employee Stock Purchase Plan. Although stock-based compensation is an important aspect of the compensation of F5’s employees and executives, management believes it is useful to exclude stock-based compensation expenses to better understand the long-term performance of the Company’s core business and to facilitate comparison of the Company’s results to those of peer companies. Amortization and impairment of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives, and generally cannot be changed or influenced by management after the acquisition. On a non-recurring basis, when certain events or circumstances are present, management may also be required to write down the carrying value of its purchased intangible assets and recognize impairment charges. Management does not believe these charges accurately reflect the performance of the Company’s ongoing operations, therefore, they are not considered by management in making operating decisions. However, investors should note that the use of intangible assets contributed to F5’s revenues earned during the periods presented and will contribute to F5’s future period revenues as well. Facility-exit costs. F5 has incurred charges in connection with the exit of facilities as well as other non- recurring lease activity. These charges are not representative of ongoing costs to the business and are not expected to recur. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations. Acquisition-related charges, net. F5 does not acquire businesses on a predictable cycle and the terms and scope of each transaction can vary significantly and are unique to each transaction. F5 excludes acquisition-related charges from its non-GAAP financial measures to provide a useful comparison of the Company’s operating results to prior periods and to its peer companies. Acquisition-related charges consist of planning, execution and integration costs incurred directly as a result of an acquisition. Cyber incident costs. F5 has incurred certain non-recurring expenses in connection with the investigation and remediation of the Cyber Incident. Management believes it is useful to exclude these expenses as they are not representative of our ongoing operations and to facilitate comparison of the Company’s historical results and to those of peer companies. Insurance recoveries from cyber incident. F5 has received insurance recoveries in connection with the cyber incident costs described above. Management believes it is useful to exclude these recoveries as they offset the cyber incident costs non-GAAP adjustment, are not representative of our ongoing operations and to facilitate comparison of the Company's historical results and to those of peer companies. Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP financial statements, primarily related to workforce reductions and costs associated with exiting facility-lease commitments. F5 excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business. Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the Company’s core business operations and facilitates comparisons to the Company’s historical operating results. Although F5’s management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management’s reliance on this measure is limited because items excluded from such measures could have a material effect on F5’s earnings and earnings per share calculated in accordance with GAAP. Therefore, F5’s management will use its non- GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the Company’s core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP. F5 believes that presenting its non-GAAP measures of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the Company’s core business and is used by management in its own evaluation of the Company’s performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the Company provides investors these supplemental measures since, with reconciliation to GAAP, it may provide additional insight into the Company’s operational performance and financial results.