F5 raises full-year revenue growth outlook to 7% to 8% after Q2 product revenue jumped 22% year-over-year to $411 million

F5 Q2 fiscal 2026 revenue grew 11% year-over-year to $812 million, with product revenue up 22% to $411 million and services revenue up 2% to $401 million. The company raised its full-year revenue growth outlook from 5% to 6% previously to 7% to 8%, and increased its non-GAAP EPS outlook to $16.25 to $16.55.

Within products, systems revenue reached $226 million (up 26% year-over-year) and software revenue hit $184 million (up 17% year-over-year). Subscription software, which comprises 90% of software revenue, grew 20% year-over-year to $165 million. Recurring sources accounted for 70% of Q2 revenue.

AI use cases drove approximately $50 million in first-half fiscal 2026 sales, up more than 200% year-over-year, with F5 approaching about 100 customers using F5 for AI use cases across data delivery, AI runtime security, and AI factory load balancing. An NVIDIA integration validated in third-party tests showed F5 software can help AI factories generate 30% to 40% more tokens for a given amount of GPUs.

CFO Cooper Werner flagged higher component costs, primarily related to memory, expecting gross margins to step down sequentially from Q3 into Q4, with memory prices expected to remain elevated through at least the better part of fiscal 2027.