EU and US could reach trade deal this weekend - Reuters
WASHINGTON - F5 (NASDAQ: FFIV), a technology company with impressive financial health according to InvestingPro data, has announced the integration of NGINX Plus with Red Hat Enterprise Linux to meet Federal Information Processing Standards (FIPS) compliance, now available on AWS Marketplace. The solution, which was introduced at the AWS Summit earlier this week, aims to provide unified application security, scalability, and reliability, crucial for safeguarding sensitive data and adhering to strict cryptographic standards. The company’s strong balance sheet, with more cash than debt, positions it well to continue investing in security innovations.
The NGINX Plus FIPS 140-3 on Red Hat Enterprise Linux solution supports FIPS 140-3 validation standards, which are recognized by the U.S. National Institute of Standards and Technology (NIST) and the Canadian Centre for Cyber Security. This integration is designed to simplify the configuration and usage of FIPS-compliant products, addressing the needs of government, healthcare, legal, and finance sectors to protect sensitive information. F5’s robust gross profit margin of 80.9% demonstrates its ability to maintain pricing power while delivering high-value security solutions.
John Maddison, Chief Product and Corporate Marketing Officer at F5, emphasized the company’s commitment to delivering FIPS-designed solutions that bolster application and API protections amid an expanding threat landscape. The offering is part of the F5 Application Delivery and Security Platform, which merges load balancing and traffic management with app and API security.
Red Hat Enterprise Linux is known for supporting compliance with stringent security protocols and cryptographic modules. The F5 NGINX Plus enhances performance through advanced load balancing and secure application delivery. Now accessible via AWS Marketplace, the integrated solution streamlines the customer experience with a packaged FIPS offering and improved security posture.
John Dvorak, Chief Technology Officer, North America Public Sector at Red Hat, highlighted the importance of solutions that enable digital capabilities through application-dependent technologies, such as AI, without sacrificing security or compliance. He noted that Red Hat Enterprise Linux provides a secure foundation to support applications more consistently across environments.
The collaboration between F5 and Red Hat offers customers the ability to maintain compliance and protect data while focusing on business priorities. The AWS Summit provides an opportunity for further discussions with industry experts on advanced application delivery and security technologies. F5’s market performance has been remarkable, with a 76% return over the past year, though InvestingPro analysis suggests the stock may be slightly overvalued at current levels. For deeper insights into F5’s valuation and growth prospects, including 8 additional ProTips and comprehensive financial analysis, explore the full Pro Research Report available on InvestingPro.
This news is based on a press release statement.
In other recent news, F5 Networks has reported robust financial performance for the second quarter of 2025, surpassing analyst expectations with earnings per share (EPS) of $3.42, above the forecasted $3.10. The company also exceeded revenue projections, posting $731 million against an anticipated $718.2 million, marking a 7% year-over-year increase. Needham has initiated coverage of F5 Networks with a Buy rating and a price target of $320, citing the company’s favorable earnings results and strong guidance for the upcoming quarters. Goldman Sachs, however, maintained a Neutral rating with a $300 price target, noting the company’s earnings beat was partly due to lower taxes and unexpected other income.
F5 Networks has raised its full-year 2025 revenue and EPS guidance, reflecting confidence in its systems refresh cycle and strong demand for its hybrid multi-cloud solutions. The company anticipates a significant rebound in its Software segment in the second half of the fiscal year, projecting over 10% growth for the full year. The firm’s systems revenue experienced a notable 27% increase, driven by strong demand for data center modernization and AI infrastructure.
Despite a deceleration in Software segment revenue, F5 Networks expects a recovery due to a strong renewal base and mid-single-digit percentage price increases. The company also plans to mitigate a low single-digit million-dollar impact from tariffs through manufacturing efficiencies, benefiting from USMCA compliance. Overall, F5 Networks’ strategic focus on AI and security innovations, along with its robust product offerings, positions it well for continued growth in the evolving market landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.