Fortinet stock lifts full-year outlook after strong third quarter

Fortinet reported strong third-quarter results on Wednesday, October 28, 2026, and raised its full-year revenue outlook. The cybersecurity company said broad demand across its portfolio supported the performance, while Chief Executive Ken Xie pointed to Fortinet's role in securing artificial intelligence infrastructure. The results and guidance were published by Fortinet investor relations.

Revenue growth accelerates across products

Revenue for the quarter ended September 30 reached 2.078 billion US dollars, up 20 percent from 1.725 billion US dollars a year earlier. Product revenue increased 37 percent to 765 million US dollars, while service revenue rose to 1.313 billion US dollars from 1.166 billion US dollars.

Billings, which Fortinet defines as revenue plus the change in deferred revenue and less deferred revenue acquired in a business combination, rose 29 percent to 2.336 billion US dollars. GAAP net income increased to 635.5 million US dollars from 473.9 million US dollars, and diluted GAAP earnings per share rose to 0.86 US dollars from 0.62 US dollars. Non-GAAP diluted earnings per share reached 0.91 US dollars, compared with 0.74 US dollars in the prior-year quarter.

GAAP operating margin improved to 33.9 percent from 31.7 percent. The non-GAAP operating margin, which excludes stock-based compensation, acquired-intangible amortization and other specified items, increased to 38.2 percent from 36.9 percent. Operating cash flow was 946 million US dollars and free cash flow was 864.8 million US dollars.

Higher outlook, mixed service signal

Fortinet now expects full-year revenue of 8.125 billion to 8.215 billion US dollars, representing 20 percent growth at the midpoint. The company also lifted its full-year billings outlook to 9.568 billion to 9.718 billion US dollars and expects non-GAAP diluted earnings per share of 3.54 to 3.58 US dollars.

The service revenue outlook is 5.150 billion to 5.170 billion US dollars. For the fourth quarter, Fortinet forecasts revenue of 2.155 billion to 2.245 billion US dollars, billings of 2.775 billion to 2.925 billion US dollars and non-GAAP diluted earnings per share of 0.93 to 0.95 US dollars. The guidance remains subject to demand, supply-chain conditions, sales execution and other risks identified by the company.

Fortinet also increased its share repurchase authorization by 1.2 billion US dollars, leaving 2 billion US dollars available under the authorization. For investors, the combination of faster product growth, higher billings and stronger cash generation supports the growth case, while the separate service revenue outlook remains an important measure of subscription and support momentum.

Next investor date approaches

Management is scheduled to participate in the BMO Technology and Innovation Leaders Conference on November 12, 2026. Additional conference appearances are scheduled for December 2 and December 9, although the company said the schedule may change.

Fortinet stock traded at 124.17 euros on Lang & Schwarz at 11:09 CET on Friday, October 30, 2026. The real-time quote of Fortinet stock provides the latest trading indication.

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