Piper Sandler on Wednesday increased its 12-month price target for F5 Networks (NASDAQ:FFIV) to $325.00, up from $295.00, and reaffirmed an Overweight rating on the name. The move followed F5’s quarterly results and came as the shares traded around $290.34, a level that InvestingPro Fair Value estimates assess as slightly undervalued.
The broker pointed to limited demand disruption and a vigorous product refresh cycle as key drivers behind its decision. F5’s latest report helped spark a more than 10% gain in the stock during after-hours trading as investors reacted to the company’s top-line and margin performance.
Financial metrics and guidance
F5 reported a gross profit margin of 81.4% and delivered revenue growth of 8.8% over the trailing twelve months. The company also upgraded its fiscal year 2026 outlook by an amount exceeding the upside from the first-quarter results. That guidance implies about 9% year-over-year product growth and projects Systems revenue above $800 million, which would represent approximately 14% year-over-year growth for that segment.
Analysts’ consensus for fiscal 2026 stands at earnings per share of $16.32, and the shares are trading at a price-to-earnings multiple of 22.9 based on that estimate.
Market and business dynamics cited by Piper Sandler
The research team highlighted a building deal pipeline tied to hybrid multi-cloud deployments, AI modernization initiatives and the convergence of delivery and security functions. Piper Sandler also noted improved engagement with large enterprise customers in the wake of a recent breach.
InvestingPro data cited by analysts indicates F5 carries more cash than debt on its balance sheet, a position that provides flexibility to pursue strategic growth initiatives highlighted by the firm.
Quarterly results that drove upward revisions
F5 posted first-quarter fiscal 2026 results that outperformed consensus expectations. The company reported earnings per share of $4.45 versus projected EPS of $3.65, and revenue of $822 million compared with anticipated revenue of $755.96 million. In response to the stronger-than-expected quarter, F5 raised its full fiscal 2026 revenue guidance by 3.5% and increased its EPS outlook by $0.85. The company’s guidance for the second quarter also exceeded consensus, by 4% on revenue and by $0.02 on EPS.
Analyst reactions beyond Piper Sandler
Evercore ISI also lifted its price target on F5, moving it from $280 to $320 while keeping an "In Line" rating. The company’s segment performance showed a 37% jump in Systems (hardware) revenue, an 8% decline in Software, and 4% growth in Services. Separately, Needham analyst Ryan Koontz maintained a Hold rating on the stock, while acknowledging the strength of the quarter.
Piper Sandler summed up part of its rationale with the phrase: "Year of Refresh, F5’s own refresh/EoSS, estimates de-risked, software acceleration coming." The firm’s view, combined with InvestingPro’s assessment of F5’s financial health as "GREAT" and generally low price volatility, underpins its recommendation to own the shares.
Bottom line
Piper Sandler’s raise in the price target and sustained Overweight stance reflect a set of interrelated developments: strong quarterly results, healthy margins, an upgraded fiscal outlook, and what the firm describes as growing demand in areas tied to cloud, AI modernization and security-delivery convergence. These factors, together with a net-cash position on the balance sheet, are cited as supporting a constructive case for F5’s shares.