F5 Inc Shares Plunge 18% After Weak 2027 Guidance

F5 Inc shares dropped nearly 18% on Wednesday morning following the release of weak financial guidance for the 2027 fiscal year. The company forecast revenue growth of only 8% to 9% for the coming year, a projection that overshadowed strong current performance.

For the fourth quarter, the company reported revenue of $917 million, a 13% increase driven by a 23% surge in product revenue. Full-year revenue for 2026 reached $3.42 billion, marking an 11% increase. Despite these gains, management warned that legacy hardware replacement bookings are expected to decline in the second half of the year, which will limit growth contributions compared to the previous fiscal period.

To support shareholders amid the stock decline, the company board approved an additional $1.5 billion for share repurchases.