Cybersecurity company F5 projected annual revenue below Wall Street forecasts on Monday, citing the lingering effects of a recent cyberattack that has sparked concern over potential vulnerabilities in U.S. and UK government systems.
The company’s stock dropped 5.8% in after-hours trading following the announcement.
Earlier this month, F5 revealed that hackers had obtained “long-term, persistent access” to parts of its internal infrastructure, including source code for one of its core cybersecurity offerings.
According to Reuters, two individuals familiar with the matter said the breach was linked to state-backed hackers from China. U.S. authorities confirmed that federal networks were among those affected and urged organizations to take swift protective measures.
“F5 anticipates some near-term disruption to sales cycles as customers focus on assessing and remediating their environments following the recent security incident,” the company stated Monday.
Despite this warning, executives clarified during a post-earnings call that no immediate decline in demand had been detected.
Related story: China-Linked Hackers Accused in Major F5 Cybersecurity Breach
Impact on Customers and Future Outlook
Chief Executive Officer Francois Locoh-Donou explained that the incident mainly impacted BIG-IP customers in two distinct ways. Some clients were forced to quickly upgrade to the newest software releases after the breach was disclosed.
Others—representing a smaller group—experienced limited data theft and were individually informed of the situation. Locoh-Donou noted that initial assessments suggested the stolen information was “not sensitive.”
Looking ahead, F5 expects revenue growth for the full fiscal year to range between 0% and 4%, acknowledging that the repercussions of the breach will likely be felt more strongly in the first half of fiscal year 2026 before conditions stabilize later.
The company’s forecast came in below analysts’ average projection of a 4.8% increase, according to data compiled by LSEG.
For the upcoming quarter, F5 estimated revenue between $730 million and $780 million, factoring in possible disruptions tied to a potential U.S. government shutdown. This figure also fell short of analysts’ expectations of $791 million.
The security breach, coupled with the company’s cautious financial outlook, highlights the growing risks even major cybersecurity firms face in an increasingly volatile threat landscape.
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