F5, a software and cybersecurity company, is bracing for a financial setback in the wake of a sophisticated cyber attack that compromised software utilized by various entities, including government agencies. On Monday, the company announced that it expects its revenue growth for fiscal year 2026 to be significantly affected, projecting a range of flat to just 4% growth. This forecast falls well short of the approximately 9% growth that analysts polled by FactSet were expecting. Chief Executive François Locoh-Donou commented on the situation during an analyst call, noting the attack, which was reported in early October, could lead to customers pausing or slowing down their buying decisions or even outright canceling deals as they focus on their own response efforts.
These comments mark the first public indication from F5 regarding the potential magnitude of the nation-state attack’s impact on its financial bottom line. The attack was first disclosed about two weeks ago and has since necessitated an intense internal and external response. CEO François Locoh-Donou addressed the situation directly during the company’s fourth-quarter earnings call, expressing deep regret for the incident. “We are disappointed that this has happened and very aware as a team and as a company of the burden that this has placed in our customers who have had to work long hours to upgrade” affected products, Locoh-Donou told investors.
In response to the highly sophisticated hack, F5 is significantly increasing its internal cybersecurity investments. According to a Bloomberg report, the attackers are believed to be linked to the Chinese government and may have had access to the company’s systems since 2023. The immediate focus has been on remediation and customer support. F5 has been working with thousands of customers in recent weeks to deploy necessary security fixes with minimal operational disruption, the CEO added, while also identifying and notifying an unspecified number of customers whose data was stolen as a result of the breaches.
Looking ahead, the company is implementing comprehensive changes to enhance its long-term security posture. F5 plans to step up its security measures by enhancing its bug bounty program and partnering with outside firms to conduct thorough reviews of its code for any vulnerabilities. This proactive approach aims to build a more resilient system moving forward.
Furthermore, F5 is making an organizational shift to fully embed security into all aspects of its operations. Michael Montoya, the company’s security chief, has transitioned into a new role as its chief technology operations officer. This move is intended to ensure that security is not just a separate function but a core component of every business process, which the company hopes will prevent similar incidents in the future and help restore full customer confidence.
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