F5 Inc. announced on Monday that it expects its third-quarter revenue to exceed Wall Street estimates, driven by robust demand for its cloud services. Following the announcement, shares of the Seattle-based company rose by 1.8% in after-hours trading.

The company projects third-quarter revenue between $740 million and $760 million, comfortably ahead of analysts’ average estimate of $739 million, according to data from LSEG. For the second quarter ending March 31, F5 reported revenue of $731 million, surpassing expectations of $718.9 million.

The company also raised its full-year fiscal 2025 revenue growth forecast, now expecting an increase between 6.5% and 7.5%. This is an upward revision from the previous guidance of 6% to 7%, signaling confidence in sustained demand for its offerings.

F5’s second-quarter performance was marked by notable strength in its systems segment. Systems revenue rose 27% year-over-year to $179 million, reflecting the company’s efforts to enhance its hardware and software solutions to support evolving customer requirements. This growth in systems revenue comes amid a broader industry push towards hybrid and multicloud architectures, where enterprises demand both flexibility and security.

Despite the positive revenue outlook, F5’s earnings per share (EPS) guidance for the third quarter came in slightly below analyst expectations. Excluding certain items, the company forecasted EPS between $3.41 and $3.53, compared to the consensus estimate of $3.54. Nevertheless, analysts remain encouraged by F5’s strategic direction. The company has been transitioning from a traditional hardware-focused business to a software and services-led model. This shift has allowed F5 to capture a larger share of the cloud services market while maintaining relevance in an increasingly competitive landscape.

F5’s focus on cybersecurity solutions and application delivery in complex multicloud environments continues to resonate with enterprise customers. With companies around the world accelerating their digital transformation initiatives, F5’s role in ensuring secure, efficient, and reliable application performance positions it well for future growth.

The company’s outlook suggests that investments in product innovation, customer engagement, and cloud-centric strategies are yielding results. As organizations continue to navigate the challenges of hybrid IT infrastructures and rising cybersecurity threats, F5’s offerings are likely to remain in high demand.

F5 is scheduled to provide further details on its financial performance and strategic priorities during its upcoming earnings call with investors.