Fortinet, Inc. (FTNT): Results of Operations and Financial Condition
Fortinet, Inc. (FTNT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Press Release Fortinet Reports Strong Second Quarter 2026 Financial Results Exceeds high end of second quarter guidance on revenue and profitability Raises 2026 revenue guidance to 19% year over year growth Highlights • Revenue grew 26% year over year to $2.05 billion • Product r
How this was made
The 30-second read
Why it matters
The newest decision-relevant information is the combination of Q2 beats (revenue, EPS, margins, cash flow) and raised FY 2026 revenue guidance, plus specific Q3 guidance ranges for revenue, billings, and profitability.
Market read
A beat-and-raise earnings/guidance update with explicit revenue, margin, and EPS ranges is typically a primary driver for near-term positioning in FTNT.
What to watch
The release highlights multiple product launches and partnerships; investors may later scrutinize execution risk, competitive pricing pressure, and any margin sustainability beyond the guided ranges.
Fortinet Reports Strong Second Quarter 2026 Financial Results
Revenue grew 26% year over year to $2.05 billion, product revenue grew 52% year over year to $773 million, billings grew 33% year over year to $2.37 billion, and the company raised 2026 revenue guidance to 19% year over year growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $2.05 billion | – | 26% |
| Product revenueGAAP | $773 million | – | 52% |
| Billingsother | $2.37 billion | – | 33% |
| Operating marginGAAP | 34% | – | – |
| Operating marginnon-GAAP | 38% | – | – |
| Earnings per shareGAAP | $0.82 | – | 44% |
| Earnings per sharenon-GAAP | $0.90 | – | 41% |
| Operating cash flowGAAP | $1.04 billion | – | – |
| Free cash flowother | $966 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenueThe company cited customer value for its “SASE Firewall,” integrating firewall, SD-WAN and SASE functionality on FortiOS and powered by FortiASIC. | $773 million | – | 52% |
third quarter of 2026 and fiscal year 2026 outlook
- RevenueThird quarter of 2026: $2.010 billion to $2.100 billion; fiscal year 2026: $8.020 billion to $8.180 billion
- Gross marginThird quarter of 2026 non-GAAP gross margin: 79.0% to 81.0%; fiscal year 2026 non-GAAP gross margin: 79.0% to 81.0%
- Tax rateThird quarter of 2026 non-GAAP effective tax rate: 18%; fiscal year 2026 non-GAAP effective tax rate: 18%
- NoteThird quarter of 2026 billings: $2.250 billion to $2.350 billion
- NoteThird quarter of 2026 non-GAAP operating margin: 35.0% to 37.0%
- NoteThird quarter of 2026 diluted non-GAAP net income per share: $0.83 to $0.87
- NoteThird quarter of 2026 diluted share count: 741 million to 745 million
- NoteFiscal year 2026 service revenue: $5.180 billion to $5.220 billion
- NoteFiscal year 2026 billings: $9.350 billion to $9.550 billion
- NoteFiscal year 2026 non-GAAP operating margin: 35.0% to 37.0%
- NoteFiscal year 2026 diluted non-GAAP net income per share: $3.41 to $3.47
- NoteFiscal year 2026 diluted share count: 741 million to 745 million
What drove it
- Revenue grew 26% year over year to $2.05 billion.
- Product revenue grew 52% year over year to $773 million.
- Billings grew 33% year over year to $2.37 billion.
- Fortinet launched the FortiGate 1200G series with FortiSASE Outpost, FortiSOC, and an expanded FortiEndpoint offering.
- Fortinet announced a strategic collaboration with Intel to develop Fortinet Security Processor 6 (SP6).
- The company raised 2026 revenue guidance to 19% year over year growth.
Concerns
- The filing cites risks related to uncertainty regarding demand and increased business and renewals from existing customers.
- The filing cites longer sales cycles, particularly for larger enterprise, service provider, government and other large organization customers.
- The filing cites supply chain challenges, tariffs, trade disputes, trade barriers, and geopolitical dynamics as potential risks.
- The filing cites competition, pricing pressure, cybersecurity threats, vulnerabilities, breaches, and product or service disruption risks.
What to watch
- Third-quarter revenue guidance of $2.010 billion to $2.100 billion.
- Third-quarter billings guidance of $2.250 billion to $2.350 billion.
- Third-quarter non-GAAP operating margin guidance of 35.0% to 37.0%.
- Fiscal-year 2026 revenue guidance of $8.020 billion to $8.180 billion.
- Fiscal-year 2026 service revenue guidance of $5.180 billion to $5.220 billion.
- Execution of the SP6 collaboration with Intel and adoption of the FortiGate 1200G series with FortiSASE Outpost, FortiSOC, and expanded FortiEndpoint.
Balance sheet and cash flow
- Operating cash flow of $1.04 billion
- Free cash flow of $966 million
Analysis
Fortinet reported a strong second quarter of 2026, led by revenue growth of 26% year over year to $2.05 billion and billings growth of 33% year over year to $2.37 billion. The company stated that it exceeded the high end of its second-quarter guidance on revenue and profitability. The faster growth in billings than revenue is a central reported indicator of commercial momentum for the period.
Product revenue grew 52% year over year to $773 million, materially faster than total revenue growth. Management attributed customer value to its “SASE Firewall” offering, which combines firewall, SD-WAN and SASE functionality on FortiOS and FortiASIC. Product activity was supported by the launch of the FortiGate 1200G series with FortiSASE Outpost, as well as the introduction of FortiSOC and expansion of FortiEndpoint.
Profitability and cash generation remained substantial in the reported highlights. GAAP operating margin was 34% and non-GAAP operating margin was 38%. GAAP earnings per share grew 44% year over year to $0.82, while non-GAAP earnings per share grew 41% year over year to $0.90. Operating cash flow was $1.04 billion and free cash flow was $966 million. The supplied filing text does not provide the underlying operating income, net income, gross margin, expense, cash, debt, or capital-return line items.
For the third quarter, Fortinet guided revenue to $2.010 billion to $2.100 billion and billings to $2.250 billion to $2.350 billion, with non-GAAP operating margin of 35.0% to 37.0%. For fiscal 2026, revenue guidance is $8.020 billion to $8.180 billion and service revenue guidance is $5.180 billion to $5.220 billion. The company explicitly said it raised 2026 revenue guidance to 19% year over year growth. Investors should watch billings execution, the product-led growth profile, guided margin levels, service-revenue delivery, and demand conditions amid the sales-cycle, competitive, supply-chain, and geopolitical risks identified in the filing.
Management, verbatim
We are very pleased with our excellent second quarter results, which reflect the differentiated value of our innovation in the AI Era.
Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet
Our results reflect that customers value Fortinet’s unique ‘SASE Firewall’, with leading firewall, SD-WAN and SASE functionality integrated together on our single FortiOS operating system and powered by our purpose-built FortiASIC, offering customers flexible deployment in a sovereign form factor, on-prem and in the cloud.
Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet
Not in the filing
stated, not guessed- GAAP gross margin
- Non-GAAP gross profit
- GAAP operating income
- Non-GAAP operating income
- GAAP net income
- Non-GAAP net income
- Revenue prior-year dollar amount
- Revenue prior-quarter amount and sequential change
- Product revenue prior-year dollar amount
- Product revenue prior-quarter amount and sequential change
- Service revenue actual result
- Billings prior-year dollar amount
- Billings prior-quarter amount and sequential change
- Operating margin prior-year and prior-quarter comparisons
- GAAP and non-GAAP earnings-per-share prior-year dollar amounts
- Earnings-per-share prior-quarter amounts and sequential changes
- Operating cash flow comparison periods
- Free cash flow comparison periods
- Cash and cash equivalents
- Debt balance
- Share repurchases
- Dividends
- Capital expenditures
- Prior-quarter outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Fortinet’s SEC 8-K (Item 2.02) with a press release covering Q2 2026 results, business updates, and detailed Q3 and FY 2026 guidance.
Ticker impact
Fortinet reported Q2 revenue of $2.05B (+26% YoY), GAAP EPS $0.82 (+44% YoY), and raised 2026 revenue guidance to $8.02B-$8.18B.
Likely positive bias for FTNT over the next days as traders reprice Q3 and FY 2026 expectations around the raised guidance.
The article provides specific Q2 results, margin and cash flow metrics, and explicit Q3 and FY 2026 guidance ranges, which are direct inputs to valuation and positioning.
Market effects
Cybersecurity peers may see read-across on demand for SASE/firewall and AI-enabled security operations, especially given the raised FY revenue and strong billings.
Limited direct regional impact beyond US-listed cybersecurity sentiment.
Intel collaboration and supply-chain resilience messaging may influence broader enterprise security hardware and processor ecosystem narratives.
Counterpoint
Guidance is strong, but traders may focus on billings-to-revenue conversion and whether AI-era messaging is translating into durable service revenue growth.
Key entities
- companyFortinet, Inc.
Nasdaq-listed cybersecurity company reporting Q2 2026 results and raising 2026 guidance.
- partnerIntel
Announced strategic collaboration to develop Fortinet Security Processor 6 (SP6).
- credit_ratingsMoody’s
Upgraded Fortinet’s senior unsecured notes rating to A3 from Baa1.
