FTNT earnings analysis
What we found in FTNT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Total revenue reached $1.85 billion, up 20% from $1.54 billion in Q1 2025.
- EPS Beat Expectations
- GAAP EPS was $0.82, exceeding estimates of $0.60.
- Solid Operating Income
- Operating income increased by 28% to $580 million from $454 million in the prior year.
- Record Operating Cash Flow
- Operating cash flow was $1.08 billion, a 25% increase compared to $863 million last year.
- Deferred Revenue Growth
- Deferred revenue grew 14% year-over-year to $7.35 billion.
- Significant Product Revenue Increase
- Product revenue soared 41% year-over-year to $645 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Gross Margin
- Gross margins fell to 80.3%, a decrease of 0.7 percentage points compared to last year.
- Supply Chain Vulnerabilities
- Inventory commitments surged to $1.37 billion, up from $810.6 million, increasing risk of obsolescence.
- Increased Operating Expenses
- Operating expenses rose 14% to $905 million, driven by hiring and strategic investments.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.82
- Gross margin
- 80.3%
- Operating margin
- 31.4%
What they said about what is next.
Management anticipates continued growth in 2026, but exact numerical guidance is deferred to future communications.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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