Fortinet Reports Strong Q3 2026 Results and Raises Full-Year Revenue Guidance

Summary of Earnings Release

Fortinet, Inc. (NASDAQ: FTNT) filed a Form 8-K under Item 2.02 detailing financial results for the third quarter ended September 30, 2026.

Key Q3 2026 Financial Highlights

• Revenue: $2.08 billion, up 20% year-over-year.
• Product Revenue: $765 million, up 37% year-over-year.
• Billings: $2.34 billion, up 29% year-over-year.
• GAAP Operating Margin: 34%
• Non-GAAP Operating Margin: 38%
• GAAP EPS: $0.86
• Non-GAAP EPS: $0.91
• Operating Cash Flow: $946 million
• Free Cash Flow: $865 million
• Capital Allocation: Share repurchase authorization increased by $1.2 billion, bringing remaining authorization to $2.0 billion.

Guidance

Q4 2026 Outlook

• Revenue: $2.155 billion to $2.245 billion
• Billings: $2.775 billion to $2.925 billion
• Non-GAAP Gross Margin: 78.0% to 80.0%
• Non-GAAP Operating Margin: 35.5% to 37.5%
• Diluted Non-GAAP EPS: $0.93 to $0.95 (assuming 18% effective tax rate and 741M-745M diluted shares)

Full Year 2026 Outlook

• Revenue: $8.125 billion to $8.215 billion (raised to 20% YoY growth)
• Service Revenue: $5.150 billion to $5.170 billion
• Billings: $9.568 billion to $9.718 billion
• Non-GAAP Gross Margin: 79.7% to 80.3%
• Non-GAAP Operating Margin: 36.5% to 37.5%
• Diluted Non-GAAP EPS: $3.54 to $3.58 (assuming 18% effective tax rate and 741M-743M diluted shares)