10-K · February 25, 2026
Fortinet reports 2025 revenue of $6.80 billion and net income of $1.85 billion, driven by its Fortinet Security Fabric platform, broad product suite (secure networking, Unified SASE, SecOps) and AI investment (1,405…
Earnings analysis · 10-Q
FTNT earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Fortinet (FTNT) reported robust Q1 2026 results, with total revenue rising 20% year-over-year to $1.85 billion, exceeding expectations. The company achieved an EPS of $0.82, also above estimates, while maintaining a…
Read full summary
Fortinet (FTNT) reported robust Q1 2026 results, with total revenue rising 20% year-over-year to $1.85 billion, exceeding expectations. The company achieved an EPS of $0.82, also above estimates, while maintaining a strong operating margin of 31.4%. However, gross margins declined slightly to 80.3%, raising concerns about cost pressures.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.82
What stood out
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Strong Revenue Growth
Total revenue reached $1.85 billion, up 20% from $1.54 billion in Q1 2025.
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EPS Beat Expectations
GAAP EPS was $0.82, exceeding estimates of $0.60.
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Solid Operating Income
Operating income increased by 28% to $580 million from $454 million in the prior year.
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Record Operating Cash Flow
Operating cash flow was $1.08 billion, a 25% increase compared to $863 million last year.
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Deferred Revenue Growth
Deferred revenue grew 14% year-over-year to $7.35 billion.
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Significant Product Revenue Increase
Product revenue soared 41% year-over-year to $645 million.
What to watch
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Declining Gross Margin
Gross margins fell to 80.3%, a decrease of 0.7 percentage points compared to last year.
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Supply Chain Vulnerabilities
Inventory commitments surged to $1.37 billion, up from $810.6 million, increasing risk of obsolescence.
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Increased Operating Expenses
Operating expenses rose 14% to $905 million, driven by hiring and strategic investments.
Management's outlook
Management anticipates continued growth in 2026, but exact numerical guidance is deferred to future communications.
Earlier filings 4
10-Q · November 7, 2025
Fortinet reported quarterly revenue of $1,724.9 million (up $216.8M or +14.4% YoY and up $94.9M or +5.8% sequentially) with total gross profit of $1,393.2 million (gross margin 80.8%) and operating income of $547.3…
10-Q · May 8, 2025
Fortinet reported Q1 2025 revenue of $1,539.7M, up $186.4M (+13.8% YoY) versus $1,353.3M a year ago but down $120.3M (-7.3% QoQ) from $1.66B. Gross margin remained strong at 81.0% and operating income rose to $453.8M…
10-Q · May 6, 2024
Fortinet reported solid Q1 results with total revenue of $1,353.3M (up $91.0M or 7.2% YoY) driven by service revenue strength, operating income of $321.2M and diluted EPS of $0.39. Operating cash flow was robust at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.