Assessing F5 (FFIV) Valuation After Upgraded 2026 Growth Outlook And Strong First Quarter Results

F5 (FFIV) is back in focus after raising its fiscal 2026 revenue growth outlook to 5% to 6%, alongside first quarter results that showed higher revenue, net income, and earnings per share year on year.

See our latest analysis for F5.

The recent guidance upgrade and quarterly results appear to have supported sentiment, with a 90 day share price return of 12.55% and a 3 year total shareholder return of 90.75%, even though the 1 year total shareholder return is down 9.79%. This suggests momentum has been stronger over the longer term than in the very recent past.

If this update has you looking beyond a single name in application security and infrastructure, it could be a good moment to scan 33 AI infrastructure stocks for other potential ideas in the same broad theme.

With the shares up over the past quarter but still carrying an estimated 24% intrinsic discount and trading below the average analyst target, the real question now is whether F5 is still undervalued or if the market is already pricing in that higher growth outlook.

Most Popular Narrative: 6.3% Undervalued

F5's most followed narrative pegs fair value at $295.30, slightly above the last close of $276.57. This frames the current discount as modest rather than extreme.

The ongoing shift to high margin, recurring software and SaaS subscription revenue, along with strong renewal and expand activity from existing customers, is improving revenue visibility and predictability while supporting operating margin and EPS growth.

Read the complete narrative.

Curious what kind of revenue mix, margin profile, and future earnings multiple it takes to justify that gap to fair value? The full narrative lays out those assumptions in detail without assuming a straight line from here.

Result: Fair Value of $295.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that gap relies on software and SaaS adoption staying on track, and on the recent security breach not causing deeper or longer lasting deal and pipeline disruption.

Find out about the key risks to this F5 narrative.

Build Your Own F5 Narrative

If you see the story differently or want to stress test the assumptions yourself, you can spin up your own F5 view in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding F5.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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