(Reuters) -F5 forecast third-quarter revenue above Wall Street estimates and beat second-quarter revenue estimates on Monday, indicating growing demand for its cloud services, sending its shares up 1.8% in extended trading.
Heightened cybersecurity risks, stemming from accelerated enterprise cloud migration, are driving demand for secure network and application delivery solutions offered by companies like F5.
The increased demand has helped the company offset IT budget cuts amid an environment of economic uncertainty.
The company forecast third-quarter revenue between $740 million and $760 million, above analysts’ estimate of $739 million, according to data compiled by LSEG.
Revenue for the quarter ended March 31 came in at $731 million, compared with analysts’ estimate of $718.9 million.
“F5 alleviates the high costs, crushing complexity, and escalating cyber risks IT teams face in an AI-driven hybrid multicloud world,” said CEO Francois Locoh-Donou.
For full-year 2025, the company raised its revenue growth forecast to be between 6.5% and 7.5% up from its previous outlook of 6% to 7% growth.
Excluding items, it forecast earnings per share between $3.41 and $3.53, compared to analysts’ estimate of $3.54 each.
The company reported second-quarter systems revenue of $179 million up 27% from the same period a year ago.
(Reporting by Priyanka.G in Bengaluru; Editing by Tasim Zahid)
