Fortinet reports strong third-quarter 2026 financial results

• Revenue grew 20% year over year to $2.08 billion.
• Product revenue grew 37% year over year to $765 million.
• Billings grew 29% year over year to $2.34 billion.[1]
• GAAP operating margin of 34%.
• Non-GAAP operating margin of 38%.[1]
• GAAP earnings per share of $0.86.
• Non-GAAP earnings per share of $0.91.[1]
• Operating cashflow of $946 million.
• Free cashflow of $865 million.[1]
• Share repurchase authorisation increased by $1.2 billion; remaining authorisation of $2 billion.

Fortinet (Nasdaq: FTNT), a global cyber security leader driving the convergence of networking and security, today announced financial results for the third quarter ended 30 September 2026.

“We are very pleased with our excellent third-quarter results, which reflect strong execution and broad-based demand across our entire portfolio, allowing us to raise our 2026 billings guidance for the third time this year,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “Our strong momentum is driven by our continued leadership in the AI era. As AI introduces entirely new attack surfaces, network security remains the critical foundation of AI security. Powered by our single FortiOS operating system and proprietary FortiASIC technology, our unified platform approach secures critical AI infrastructure while delivering industry-leading performance and a significantly lower total cost of ownership.”

Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. (Image: AI-enhanced)

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• Announced the new FortiGuard Inline AI Security Service, delivering AI-specific inspection and guardrails to FortiGate customers through a cloud-delivered service, enabling organisations to gain deeper visibility into AI activity and stop AI threats and data exposure through the Fortinet solutions they already use.
• Announced the FortiLink SASE service, giving organisations a simpler way to secure small branch office, remote facilities and other distributed locations without requiring a dedicated on-site firewall. By connecting local networks to FortiSASE, organisations can protect and manage wired and wireless devices through a simplified, cloud-delivered service while managing networking and security from a single console.
• Selected by NVIDIA as a top OpenShell Reference Architecture Partner to Secure AI.
• Oracle and Fortinet announced a collaboration to help enterprises securely accelerate AI adoption, combining OCI Enterprise AI with FortiAIGate to protect and govern AI applications and agents at scale while maintaining visibility and control.
• Selected by Microsoft to join its Sovereign Partner Ecosystem based on Fortinet’s sovereign solution strength, to together deliver trusted sovereign AI security solutions to highly regulated industries.
• Recognised as a leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall and positioned highest for ability to execute for the second consecutive year.

For the fourth quarter of 2026, Fortinet currently expects:

• Revenue in the range of $2.155 billion to $2.245 billion.
• Billings in the range of $2.775 billion to $2.925 billion.
• Non-GAAP gross margin in the range of 78.0% to 80.0%.
• Non-GAAP operating margin in the range of 35.5% to 37.5%.
• Diluted non-GAAP net income per share in the range of $0.93 to $0.95, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 741 million to 745 million.

For the fiscal year 2026, Fortinet currently expects:

• Revenue in the range of $8.125 billion to $8.215 billion.
• Service revenue in the range of $5.150 billion to $5.170 billion.
• Billings in the range of $9.568 billion to $9.718 billion.
• Non-GAAP gross margin in the range of 79.7% to 80.3%.
• Non-GAAP operating margin in the range of 36.5% to 37.5%.
• Diluted non-GAAP net income per share in the range of $3.54 to $3.58, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 741 million to 743 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 Fortinet's actual results to differ materially from these forward-looking statements.

Fortinet's guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortisation of acquired intangible assets, gain on intellectual property matters, a gain from an escrow settlement 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 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.

[1] A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading: “Explanation of Non-GAAP Financial Measures”.

Fortinet will host a conference call today at 1:30pm Pacific Time (4:30pm Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

Fourth quarter 2026 conference participation schedule:

• BMO Technology and Innovation Leaders Conference: 12 November 2026

• UBS Global Technology and AI Conference: 2 December 2026
• Barclays Global Technology Conference: 9 December 2026

Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation and Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.