Faruqi & Faruqi Investigates F5 Securities Claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Globenewswire
- Litigation Investigation: Faruq & Faruqi LLP is investigating potential securities claims against F5, Inc., particularly for investors who purchased securities between October 28, 2024, and October 27, 2025, urging them to apply for lead plaintiff status by February 17, 2026, to protect their legal rights.
- Security Breach Allegations: F5 is accused of failing to disclose the true state of its security capabilities, particularly regarding a significant security breach affecting its key product, BIG-IP, which could severely impact the company's ability to profit in the security market, leading to substantial investor losses.
- Financial Forecast Downgrade: In its October 27, 2025 earnings report, F5 announced growth expectations for fiscal 2026 significantly below market forecasts, primarily due to the security breach resulting in reduced sales and renewals, elongated sales cycles, and increased expenses, highlighting the severe financial challenges facing the company.
- Stock Price Volatility: F5's stock price fell dramatically from $290.41 at the close on October 27, 2025, to $258.76 on October 29, 2025, a decline of 10.9% in just two days, reflecting strong market concerns about the company's future prospects.
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Analyst Views on FFIV
Wall Street analysts forecast FFIV stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FFIV is 287.56 USD with a low forecast of 260.00 USD and a high forecast of 320.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
1 Buy
8 Hold
1 Sell
Hold
Current: 292.300
Low
260.00
Averages
287.56
High
320.00
Current: 292.300
Low
260.00
Averages
287.56
High
320.00
About FFIV
F5, Inc. is a provider of multi-cloud application security and delivery solutions. The Company enables its customers to deploy, operate, secure, optimize, and govern every application and application programming interface (API) across any architecture, on-premises, in the cloud, at the edge and across hybrid, multi-cloud environments. Its enterprise-grade application services are available as hardware, software, and software-as-a-service solutions optimized for hybrid, multicloud environments, with modules that can run independently, or as part of an integrated solution on its high-performance appliances. Through its BIG-IP, F5 NGINX and F5 Distributed Cloud Services products, it offers a range of integrated, artificial intelligence- and machine learning-driven solutions that support performance and protect applications and APIs across data center, cloud, and edge locations. Its products and solutions also include F5 Distributed Cloud CDN and F5 NGINX Ingress Controller, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
F5 Networks Q1 Earnings Exceed Expectations
- Earnings Beat: F5 Networks reported a Q1 non-GAAP EPS of $4.45, exceeding expectations by $0.80, indicating strong market performance that is likely to boost investor confidence.
- Revenue Growth: The company achieved revenue of $822 million in Q1, a 7.3% year-over-year increase, surpassing market expectations by $63.94 million, reflecting sustained demand and market share expansion in the cybersecurity sector.
- Upgraded Outlook: F5 raised its fiscal year 2026 revenue growth guidance to a range of 5% to 6%, up from the previous 0% to 4%, demonstrating optimism about future market conditions that may attract more investor interest.
- Improved Profitability: The company expects non-GAAP operating margins to rise to 34% to 35%, up from 33.5% to 34.5%, which will enhance profitability and generate higher returns for shareholders.
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F5 Faces Securities Class Action Over Security Breach
- Lawsuit Notification: Hagens Berman has issued a notice to F5, Inc. investors, urging them to apply as lead plaintiffs by February 17, 2026, in a pending securities class action against the company and its executives.
- Security Breach Exposure: The lawsuit alleges that F5 executives failed to disclose a security breach of its core BIG-IP products in October 2025, misleading the market about its security, which resulted in a loss of over $2 billion in market value.
- Performance Decline: F5's Q4 FY25 results released on October 27, 2025, indicated significant reductions in sales and renewals due to the security incident, leading to a forecast for FY26 that fell well below market expectations, causing a 7% drop in stock price.
- Long-term Infiltration Risk: The lawsuit highlights that F5 was infiltrated by a nation-state threat actor in August 2025, who maintained long-term access and downloaded sensitive source code, posing serious risks to client security and the company's future prospects.
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