Fortinet reports second quarter 2025 financial results

Highlights

• Revenue grew 14% year over year to $1.63 billion.
• Billings grew 15% year over year to $1.78 billion.¹
• Unified SASE ARR up 22% and Security Operations ARR up 35%, year over year.²
• GAAP operating margin of 28%.
• Non-GAAP operating margin of 33%.¹
• Raised 2025 full-year billings guidance midpoint by $100 million.

Fortinet, a global cyber security leader driving the convergence of networking and security, today announced financial results for the second quarter ended 30 June 2025.

Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet.

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“Our strong second quarter performance and consistent track record of growth are a direct result of our continued innovation and customer-first strategy, enabling us to beat our billings guidance for the quarter and raise our full-year billings outlook,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We are the industry leader in network security, with the most deployed firewalls worldwide, a new-generation SASE firewall and recognised leadership in the 2025 Gartner Magic Quadrant for SASE Platforms. This recognition, along with our strong business momentum, financial outlook, innovation and leadership across five separate network security Magic Quadrant reports, underscores the strength of our AI-driven security approach and the strategic advantage of our unified FortiOS operating system.”

• Recognised as a leader in the 2025 Gartner Magic Quadrant for SASE Platforms, number one in the Critical Capabilities for SASE Platforms report for the Secure Branch Network Modernization use case, and the only vendor in five different network security Magic Quadrant reports.
• Expanded FortiCloud with three new natively integrated services: FortiIdentity, FortiDrive and FortiConnect.
• Recognised as the overall leader in the Westlands Advisory IT/OT Network Protection Platform Navigator 2025 report for the third time in a row.
• Named a leader in the 2025 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure for the second year in a row.
• Recognised as a Gartner Peer Insights Customers’ Choice for SD-WAN for the sixth consecutive year and for Endpoint Protection for the third consecutive year.
• Crossed 1 400 issued patents worldwide, and over 500 issued and pending AI patents, driven by R&D investments.

For the third quarter of 2025, Fortinet currently expects:

• Revenue in the range of $1.670 billion to $1.730 billion.
• Billings in the range of $1.760 billion to $1.840 billion.
• Non-GAAP gross margin in the range of 80.0% to 81.0%.
• Non-GAAP operating margin in the range of 32.5% to 33.5%.
• Diluted non-GAAP net income per share in the range of $0.62 to $0.64, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 772 million to 776 million.

For the fiscal year 2025, Fortinet currently expects:

• Revenue in the range of $6.675 billion to $6.825 billion.
• Service revenue in the range of $4.550 billion to $4.650 billion.
• Billings in the range of $7.325 billion to $7.475 billion.
• Non-GAAP gross margin in the range of 79.0% to 81.0%.
• Non-GAAP operating margin in the range of 32.0% to 33.5%.
• Diluted non-GAAP net income per share in the range of $2.47 to $2.53, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 777 million.

These statements are forward looking and actual results may differ materially. Refer to the forward-looking statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortisation of acquired intangible assets, gain on intellectual property matters, gain on bargain purchase related to acquisition, gain from an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.