Fortinet stock lifts 2026 outlook after strong third quarter

Fortinet reported strong third-quarter results on October 28, 2026, and raised its full-year outlook. The cybersecurity company said revenue for the quarter ended September 30 rose 20 percent year over year to 2.08 billion US dollars, according to the Fortinet investor relations release.

Growth broadens beyond revenue

Billings grew 29 percent to 2.34 billion US dollars, ahead of reported revenue and pointing to continued contract activity. Product revenue increased 37 percent to 765 million US dollars, while service revenue reached 1.31 billion US dollars.

Fortinet posted a GAAP operating margin of 33.9 percent and a non-GAAP operating margin of 38.2 percent. Diluted GAAP earnings per share came to 0.86 US dollars, compared with non-GAAP diluted earnings per share of 0.91 US dollars.

Higher targets set for 2026

Fortinet now expects full-year 2026 revenue of 8.125 billion to 8.215 billion US dollars and billings of 9.568 billion to 9.718 billion US dollars. The company guides to a non-GAAP operating margin of 36.5 percent to 37.5 percent and non-GAAP diluted earnings per share of 3.54 to 3.58 US dollars.

For the fourth quarter, management expects revenue of 2.155 billion to 2.245 billion US dollars and non-GAAP diluted earnings per share of 0.93 to 0.95 US dollars. These are forward-looking targets, so execution and demand will remain the next tests for the shares.

Cash flow supports capital returns

Operating cash flow reached 946 million US dollars and free cash flow was 864.8 million US dollars in the quarter. Fortinet's board added 1.2 billion US dollars to the share repurchase authorization, leaving 2 billion US dollars available.

What changed since the last report

Fortinet stock traded at 121.29 euros on Lang & Schwarz at 4:35:37 p.m. CEST on Friday, October 30, 2026. That compares with 115.74 euros at 11:47 a.m. in the previous report published on October 29, an increase of 4.80 percent since that report.

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