Fortinet, Inc.

NASDAQ Global Select
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Very Bullish +85

Fortinet reports strong first quarter 2026 financial results

📈 Fortinet reported first-quarter 2026 revenue of $1.85 billion, a 20% year-over-year increase driven by heightened enterprise cybersecurity spending.

💰 Product revenue surged 41% to $645 million while total billings jumped 31% to $2.09 billion, exceeding both upper and lower guidance ranges.

💵 The company achieved an operating margin of 31% under GAAP, with non-GAAP operating margin climbing to 36%.

📊 Diluted non-GAAP earnings per share rose 41% year over year, reaching $0.82, alongside a record operating cash flow of $1.08 billion.

🧠 CEO Ken Xie attributed strong performance to the continued convergence of networking and security strategies alongside evolving AI-driven cyber threats.

🚀 Fortinet launched FortiOS 8.0 during the quarter, introducing expanded AI capabilities, next-generation SASE functionality, and quantum-safe features.

🛡️ The company unveiled new FortiGate G Series firewalls (3500G and 400G) specifically targeting enterprises managing growing volumes of encrypted traffic.

🤝 Fortinet expanded its artificial intelligence partnerships by collaborating with Anthropic under Project Glasswing and OpenAI.

🏆 The firm was named a Gartner Peer Insights Customers' Choice vendor for SD-WAN solutions for the seventh consecutive year.

🔮 For the second quarter of 2026, Fortinet forecasts revenue between $1.83 billion and $1.93 billion with billings projected at $2.09 billion to $2.19 billion.

💸 Second-quarter guidance includes a non-GAAP gross margin target of 79.5% to 80.5% and diluted EPS between $0.72 and $0.76.

🌍 The full-year 2026 outlook was raised with projected revenue of $7.71 billion to $7.87 billion, representing approximately 15% annual growth.

💼 Full-year service revenue is expected to range from $5.09 billion to $5.15 billion, while total billings are forecast between $8.8 billion and $9.1 billion.

📈 Company-wide non-GAAP operating margins for the full year are projected between 33% and 36%, with diluted EPS expected at $3.10 to $3.16.

🌐 Global cybersecurity spending continues to rise, driven by increased investment in cloud protection, network security, and AI-enabled threat detection.

Bullish Signals
  • Fortinet reported stronger-than-expected first-quarter 2026 results, with revenue rising 20% year-over-year to $1.85 billion as enterprise spending on cybersecurity accelerates.
  • Product revenue climbed significantly by 41% to $645 million, while billings rose 31% to $2.09 billion, exceeding the upper end of its financial guidance.
  • The company achieved a record operating cash flow of $1.08 billion and free cash flow of $1.01 billion, highlighting strong financial efficiency.
  • Non-GAAP earnings per share surged 41% year-over-year to $0.82, driven by sustained global demand and continued digital transformation investments.
  • Fortinet raised its full-year 2026 outlook, projecting revenue between $7.71 billion and $7.87 billion with approximately 15% annual growth.
  • The company successfully launched FortiOS 8.0 featuring expanded AI capabilities, next-generation SASE functionality, and quantum-safe features to differentiate its platform.
  • Fortinet expanded its FortiGate G Series portfolio with new models targeting enterprises managing growing volumes of encrypted traffic.
  • Strategic collaborations were formed with major AI partners like Anthropic under Project Glasswing and OpenAI to strengthen the artificial intelligence ecosystem.
  • Fortinet maintained its status as a Gartner Peer Insights Customers' Choice vendor for SD-WAN solutions for the seventh consecutive year.
Risk Factors
  • helped the company navigate supply chain challenges
Full Analysis
Fortinet reported stronger-than-expected financial results for its first quarter of 2026, driven by accelerating enterprise spending on cybersecurity solutions as organizations seek to counter sophisticated AI-driven digital threats. Total revenue increased 20% year over year to $1.85 billion, surpassing the upper end of the company's guidance, while billings rose 31% to $2.09 billion and product revenue climbed 41% to $645 million. These figures reflect sustained global demand for integrated platforms that combine networking and security, with operating margins reaching 31% under GAAP and 36% on a non-GAAP basis. Diluted non-GAAP earnings per share grew 41% to $0.82, supported by record operating cash flow of $1.08 billion and free cash flow of $1.01 billion. Executive leadership highlighted that the results demonstrate continued trend toward the convergence of networking and security, a strategy Fortinet has championed for over two decades alongside rapid evolution in AI-driven cyber threats. Ken Xie, founder, chairman, and CEO, noted that innovations such as the launch of FortiOS 8.0 and FortiASIC technology differentiate the platform, while the direct operations and manufacturing model helped navigate supply chain challenges. The company introduced new hardware including the FortiGate 3500G and FortiGate 400G firewalls to handle growing encrypted traffic volumes and expanded AI partnerships through collaborations with Anthropic under Project Glasswing, OpenAI, and other technology companies. Looking ahead to the second quarter of 2026, Fortinet expects revenue between $1.83 billion and $1.93 billion and billings between $2.09 billion and $2.19 billion, with non-GAAP gross margins projected at 79.5% to 80.5% and operating margins of 33% to 35%. For the full fiscal year 2026, the company raised its outlook projecting revenue growth of approximately 15% to a range between $7.71 billion and $7.87 billion, with total billings forecast between $8.8 billion and $9.1 billion. Full-year non-GAAP operating margins are expected to range from 33% to 36%, and diluted non-GAAP earnings per share are projected between $3.10 and $3.16. The strong performance underscores broader global trends where cybersecurity spending continues to rise due to increased investment in cloud protection, network security, and AI-enabled threat detection as businesses respond to a rapidly evolving cyber risk landscape. Fortinet is recognized as a driving force in cybersecurity evolution with over 500,000 customers trusting its largest integrated portfolio of enterprise-grade products. The company also maintains a significant training institute and collaborates with public and private sector organizations including CERTs and government entities to enhance global cyber resilience through FortiGuard Labs threat intelligence and machine learning technologies.