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, representing a 20% year-over-year increase.

💻 Product revenue surged 41% year over year to reach $645 million.

💰 Billings grew 31% year over year to total $2.09 billion.

📊 GAAP earnings per share increased 29% year over year to $0.72.

🚀 Non-GAAP earnings per share rose 41% year over year to $0.82.

💵 The company recorded a record operating cash flow of $1.08 billion.

🤖 CEO Ken Xie attributed growth to the convergence of networking and security and an intensified threat environment driven by AI.

🛡️ Fortinet introduced FortiOS 8.0, featuring new AI-driven security, next-generation SASE, and quantum-safe capabilities.

🔌 New FortiGate G Series hardware, including the 3500G and 400G models, was announced to handle high-performance security needs.

🤝 The company is collaborating with leading AI firms like Anthropic on "Project Glasswing" and OpenAI.

🏆 Fortinet was recognized as a Gartner Peer Insights Customers' Choice for SD-WAN for the seventh consecutive year.

📅 For Q2 2026, revenue is expected between $1.83 billion and $1.93 billion.

💼 Q2 2026 billings are forecasted to range from $2.09 billion to $2.19 billion.

📉 Full year 2026 revenue guidance stands between $7.71 billion and $7.87 billion.

🔮 Diluted non-GAAP net income per share for fiscal 2026 is expected between $3.10 and $3.16.

📞 A conference call to discuss earnings will be held today at 1:30pm Pacific Time.

🗓️ Management team members are scheduled to present at upcoming J.P. Morgan and Bank of America conferences.

Bullish Signals
  • Revenue grew 20% year over year to $1.85 billion, exceeding the high end of guidance.
  • Product revenue surged 41% year over year to $645 million, driven by strong demand for FortiOS 8.0 and new FortiGate G Series hardware.
  • Billings increased 31% year over year to $2.09 billion, reflecting robust market share gains in the convergence of networking and security.
  • GAAP earnings per share rose 29% year over year to $0.72, while Non-GAAP EPS grew 41% to $0.82.
  • The company achieved a record operating cashflow of $1.08 billion, demonstrating strong financial health and liquidity.
  • Fortinet's new FortiOS 8.0 delivers powerful AI-driven security and quantum-safe capabilities, differentiating the platform in an increasingly complex threat environment intensified by AI.
  • Management raised full-year 2026 guidance for revenue to $7.71 billion - $7.87 billion and billings to $8.8 billion - $9.1 billion, signaling confidence in sustained growth.
  • Fortinet was recognized as a Gartner Peer Insights Customers' Choice for SD-WAN for the seventh consecutive year, validating its Secure SD-WAN solutions.
  • Strategic collaborations with leading AI companies like Anthropic (Project Glasswing) and OpenAI position Fortinet at the forefront of AI security innovation.
Risk Factors
  • Fortinet's Q2 2026 guidance for non-GAAP gross margins (79.5% to 80.5%) and operating margins (33.0% to 35.0%) is lower than the company's record Q1 2026 performance, indicating potential margin compression ahead.
  • The company explicitly states that its non-GAAP financial guidance excludes stock-based compensation, amortisation of acquired intangible assets, and other items because they are 'uncertain or out of the company's control', introducing significant uncertainty to future earnings calculations.
  • Fortinet warns that actual results may differ materially from forward-looking statements due to factors that could cause divergence between projected revenue and billings for Q2 2026 and fiscal year 2026.
Full Analysis
Fortinet reported strong first quarter 2026 financial results, with revenue growing 20% year over year to $1.85 billion and billings increasing 31% to $2.09 billion. Product revenue surged 41% to $645 million, while GAAP earnings per share rose 29% to $0.72 and non-GAAP earnings per share climbed 41% to $0.82. The company achieved a record operating cash flow of $1.08 billion, driven by broad-based demand across its portfolio and geographies as well as the continued convergence of networking and security. CEO Ken Xie highlighted that innovations such as the new FortiOS 8.0 and FortiASIC technology are differentiating the platform and supporting ongoing market share gains, while the direct operations manufacturing model is turning supply chain challenges into opportunities. The company introduced FortiOS 8.0, which delivers AI-driven security, next-generation SASE, and quantum-safe capabilities to simplify security architectures. Additionally, Fortinet announced new additions to the FortiGate G Series portfolio, including the FortiGate 3500G and FortiGate 400G, designed to secure modern enterprise networks amidst growing encrypted traffic. Fortinet is collaborating with leading AI companies like Anthropic as part of "Project Glasswing" and OpenAI, and it was recognized as a Gartner Peer Insights Customers' Choice for SD-WAN for the seventh consecutive year. Looking ahead, Fortinet expects second quarter 2026 revenue between $1.830 billion and $1.930 billion, with billings ranging from $2.090 billion to $2.190 billion. For fiscal year 2026, the company projects revenue between $7.710 billion and $7.870 billion, service revenue between $5.090 billion and $5.150 billion, and billings between $8.800 billion and $9.100 billion. Non-GAAP gross margins are expected to range from 79.0% to 81.0%, while non-GAAP operating margins are projected between 33.0% and 36.0%. Diluted non-GAAP net income per share for the full year is anticipated to be between $3.10 and $3.16, assuming a diluted share count of 743 million to 749 million.