F5, Inc.

F5 sustains very high gross margins around 80 percent and non-GAAP operating margins in the mid-30s, indicating healthy pricing for both systems and software support/subscriptions. Software renewals and mission-critical nature provide room for selective price increases, though hyperscaler-native alternatives cap ultimate pricing power.

We see scope for mix-led margin expansion as software and security subscriptions grow, but we remain conservative given competitive dynamics.