F5, Inc. stock research
FY2026 Q1
F5 (FFIV) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, gross margin weakened slightly as cost of revenue grew more rapidly than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, gross margin weakened slightly as cost of revenue grew more rapidly than revenue.
- The primary observable driver of the margin change is the relative growth of cost of revenue versus revenue.
- Compared to the immediately preceding quarter, gross margin was lower, while compared to the same quarter one year earlier, gross margin was also slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.5%
Gross profit
$670.7M
Revenue
$822.5M
Cost of revenue
$151.8M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $731.1M | $590.2M | $141.0M | 80.7% |
| Jun 30, 2025 | $780.4M | $631.7M | $148.6M | 81.0% |
| Sep 30, 2025 | $810.1M | $666.2M | $143.9M | 82.2% |
| Dec 31, 2025 | $822.5M | $670.7M | $151.8M | 81.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.7 pts
Year-over-year change
Dec 31, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change is the relative growth of cost of revenue versus revenue.
Compared to the immediately preceding quarter, gross margin was lower, while compared to the same quarter one year earlier, gross margin was also slightly lower.
Monitor the trend of cost of revenue relative to revenue in upcoming quarters.