Highlights
- Revenue grew 14% year over year to $1.72 billion.
- Product revenue grew 18% year over year to $559.3 million.
- Billings grew 14% year over year to $1.81 billion.(1)
- Record third quarter GAAP operating margin of 32%.
Fortinet, which positions itself as a global cyber security leader driving the convergence of networking and security, today announced financial results for the third quarter ended 30 September 2025.
“We are pleased with our excellent third quarter results, driven by our leading innovation and customer-first culture resulting in broad-based demand for our solutions across organisations of all sizes,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “Building on our leadership in firewall and SD-WAN through our unified FortiOS operating system, FortiSASE has quickly emerged as one of the fastest growing leaders in the SASE market. Fortinet has natively developed the key SASE functions, tightly integrating next-generation firewall, SD-WAN and SASE functionality into one unified ‘New Generation SASE Firewall’ solution, providing our customers with maximum flexibility to deploy security access at the edge and giving us a sustainable competitive advantage.”
Recent business highlights
- Recognised as a leader in the inaugural 2025 Gartner Magic Quadrant for Hybrid Mesh Firewall, ranking highest in ability to execute.
- FortiSASE is the fastest-growing SASE solution at scale, with third quarter billings increasing by over 100% year over year, driven by an easy migration path that allows existing SD-WAN customers to enable SASE in minutes.
- Launched the Secure AI Data Center solution, the industry’s first end-to-end framework designed specifically for AI workloads, delivering high-capacity connectivity and up to 69% lower energy consumption than alternative solutions.
- Achieved rapid adoption in AI add-on solutions, supported by continued R&D investment and more than 500 issued and pending AI patents, powering over 20 AI-driven solutions.
- Recognised as one of Newsweek’s Most Reliable Companies, ranking 16 out of 300 companies across all industries.
Guidance
For the fourth quarter of 2025, Fortinet currently expects:
- Revenue in the range of $1.825 billion to $1.885 billion.
- Billings in the range of $2.185 billion to $2.285 billion.
- Non-GAAP gross margin in the range of 79.0% to 80.0%.
- Non-GAAP operating margin in the range of 34.5% to 35.5%.
- Diluted non-GAAP net income per share in the range of $0.73 to $0.75, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 751 million to 755 million.
For the fiscal year 2025, Fortinet currently expects:
- Revenue in the range of $6.720 billion to $6.780 billion.
- Service revenue in the range of $4.575 billion to $4.595 billion.
- Billings in the range of $7.370 billion to $7.470 billion.
- Non-GAAP gross margin in the range of 80.25% to 80.75%.
- Non-GAAP operating margin in the range of 34.5% to 35.0%.
- Diluted non-GAAP net income per share in the range of $2.66 to $2.70, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 764 million to 768 million.
Fortinet's guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortisation of acquired intangible assets, settlements of litigation related matters, 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. Fortinet has not reconciled its 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 the company's 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.
Share