F5 forecasts upbeat quarterly results on enterprise cloud demand

(Reuters) -F5 on Wednesday forecast fourth-quarter results above Wall Street estimates on strong demand for its enterprise cloud services, sending shares up 9% in extended trading.

The ongoing digital transformation is driving organizations to modernize infrastructure, with flexibility and scalability becoming key priorities.

"Customers are modernizing their data centers, adopting hybrid multicloud architectures, and scaling to meet growing application performance and security needs, including those coming from AI adoption," CEO Francois Locoh-Donou said.

The company forecast fourth-quarter revenue in the range of $780 million to $800 million, driven by continued demand, data center modernization and adoption across its application delivery and security platform.

Analysts expect revenue of $777.7 million in the current quarter, according to data compiled by LSEG.

Excluding items, F5 projected quarterly earnings per share between $3.87 and $3.99, above expectations of $3.82.

Revenue for the third quarter ended June 30 came in at $780.4 million, compared with analysts' estimates of $757.7 million.

Adjusted earnings per share for the third quarter came in at $4.16, above expectations at $3.50 per share.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Mohammed Safi Shamsi)

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