Q2 2026 revenue was $2.05B, up 26% YoY; product revenue grew 52% on higher unit shipments, pricing actions, and deployments related to AI infrastructure and higher-performance products, while service revenue grew 14% driven by unified SASE, SecOps, and FortiGuard subscription growth. EMEA led regional growth at 31% YoY. Billings rose 33% to $2.37B and deferred revenue reached $7.68B (+8% from year-end).
Fortinet disclosed active constraints on memory chip availability caused by the global AI infrastructure build-out, leading to production/delivery delays and increased component sourcing costs; the company is implementing hardware price increases to offset rising costs, with the caveat that these increases may not be sufficient or timely and could impact demand and margins.
In response to supply chain constraints and elevated component lead times, non-cancelable inventory purchase commitments with contract manufacturers nearly doubled to $1.67B from $810.6M at December 31, 2025; the company stated it is working with manufacturers to optimize inventory positioning based on demand trends, product lead times, and increasing component costs.
During H1 2026, Fortinet purchased $62.1M of U.S. real estate for future data center and office space expansion, and guided full-year 2026 capital expenditures of approximately $350M–$550M to continue expanding data center, PoP, and office capacity to support SASE and SecOps service growth.
The consolidated securities class action (In re Fortinet, Inc. Securities Litigation) saw a consolidated amended complaint filed on April 24, 2026, adding a Section 10(b) claim against the head of investor relations; defendants filed a motion to dismiss on June 15, 2026. The related consolidated derivative action was stayed on April 2, 2026 pending final resolution of the securities class action. No loss accrual was recorded.
Fortinet repaid the full $500M 2026 Senior Notes at maturity on March 15, 2026, leaving only the $500M 2031 Senior Notes outstanding with no current portion of long-term debt at quarter-end; in July 2026, Moody's upgraded certain credit ratings to A3 from Baa1 with a Stable outlook. In Q2, the company repurchased 1.9M shares in April at an average price of $77.95, with approximately $765.8M remaining under the $10.25B repurchase authorization through February 2027.
(Filed on May 8, 2026)
+20.1%
80.3%
$2.2B
Q1 2026 revenue reached $1.85 billion, up 20% year-over-year, with product revenue growing 41% driven by demand for higher-performance secure networking hardware, AI-infrastructure deployments, technology upgrades, and the 2026 firewall refresh cycle; non-GAAP billings rose 31% to $2.09 billion and total deferred revenue grew 3% sequentially to $7.35 billion. Operating margin expanded 1.9 percentage points to 31.4% as revenue growth outpaced personnel-cost growth (headcount up 5% to 15,311).
Fortinet disclosed that the rapid global AI-infrastructure build-out is causing a global shortage of memory chips used in its products, resulting in ongoing production and delivery delays and increased sourcing costs. The company is implementing price increases to offset higher hardware component costs but noted these may not be sufficient or timely, potentially compressing product margins. In response to elevated component lead times and costs, non-cancelable inventory purchase commitments increased by $555 million sequentially to $1.37 billion as of March 31, 2026.
Fortinet purchased $47.1 million of U.S. real estate during Q1 2026 for data-center and office-space expansion and guided 2026 capital expenditures to $350 million to $550 million to continue expanding its data-center footprint, points-of-presence, and colocation/cloud-hosting capacity supporting growth in unified SASE and SecOps offerings. Property and equipment—net rose to $1.69 billion from $1.62 billion at year-end 2025.
In January 2026 the board increased the authorized share-repurchase program by $1.0 billion to $10.25 billion through February 28, 2027; during Q1 the company repurchased 10.6 million shares at a weighted-average price of $77.69 for $826.9 million, leaving $911.7 million available. The company also repaid the full $500 million 1.0% Senior Notes at their March 15, 2026 maturity, leaving $496.8 million of long-term debt (2031 notes).
A consolidated securities class action (In re Fortinet, Inc. Securities Litigation) alleging false statements regarding the 2026 firewall refresh cycle and business prospects had its amended complaint filed on April 24, 2026; a related consolidated stockholder derivative action was stayed by the court on April 2, 2026 pending resolution of the securities suit. Separately, the risk factors section references a recently discovered and patched critical vulnerability in the FortiManager product, noting associated reputational, customer-relationship, and potential litigation risks.
Management guided that full-year 2026 operating margin is expected to decrease versus 2025 as expenses (sales/marketing headcount, product development, data-center capex) outpace revenue growth, while product and service revenue are each expected to continue growing. The company stated it currently does not expect U.S. tariffs to have a meaningful impact on gross margin, though changes in trade policy could adversely affect hardware margins primarily for U.S.-bound sales.
(Filed on February 25, 2026)
+14.8%
79.6%
$2.5B
Annual context (FY2025, not Q4-specific): Total revenue was $6.80B (+14% YoY), billings $7.55B (+16%), and operating margin 30.7% (+0.4pp). Product revenue grew 16% driven by secure networking hardware and term licenses; service revenue grew 13% led by security subscriptions (+14%) and unified SASE/SecOps. EMEA was the largest growth contributor at +18%. Deferred revenue rose 12% to $7.12B. Headcount increased 7% to 15,109.
Q4 2025 litigation: Two securities class actions (filed September 22 and October 16, 2025) and four shareholder derivative suits (filed October 8 through December 2, 2025) were filed in the Northern District of California, alleging misleading statements regarding the 2026 firewall refresh cycle and business prospects. Fortinet stated the cases are without merit, no loss accrual was recorded, and the company intends to defend vigorously.
Supply chain and inventory (year-end 2025 state): Fortinet reported ongoing constraints on memory chip availability driven by global AI infrastructure buildout, with resulting production/delivery delays and increased sourcing costs; the company is implementing price increases to partially offset higher hardware input costs. Non-cancelable inventory purchase commitments rose to $810.6M (up $219.5M YoY), of which $720.9M is due in 2026. Finished goods inventory was $334.6M, up from $220.5M a year earlier.
Q4 2025 and subsequent capital actions: Fortinet repurchased 0.7M shares in November at an average price of $78.46 (no purchases in October or December). The $500M 1.0% Senior Notes maturing March 15, 2026 were reclassified to current liabilities. In January 2026 (subsequent to Q4), the board approved an additional $1.0B to the repurchase authorization (bringing total authorized to $10.25B through February 2027) and signed a definitive agreement to purchase 5.3 acres in Sunnyvale, CA for $47.0M. Approximately $1.27B remained available for repurchases as of the filing date.
Geopolitical and competitive developments: The Chinese government instructed domestic companies in certain industries not to use cybersecurity products from US- or Israel-based vendors, including Fortinet. The company also disclosed that the Chinese directive and broader geopolitical tensions (Ukraine, China-Taiwan, Middle East) pose ongoing demand and supply chain risks. As of year-end, Fortinet held 1,405 global patents including 321 AI-related patents and operated over 190 points of presence globally.
(Filed on November 7, 2025)
+14.4%
80.8%
$2B
Q3 FY2025 revenue was $1,724.9M, up 14% year over year, with product revenue up 18% ($559.3M) driven by secure networking hardware and term licenses, and service revenue up 13% ($1,165.6M) driven by FortiGuard subscription growth and unified SASE/SecOps. EMEA led growth at 19%, followed by APAC at 16% and Americas at 9%. Billings rose 14% to $1,807.7M; total deferred revenue reached $6.65B (+5% from year-start). Headcount grew 7% to 15,015 employees.
Q3 gross margin declined 1.7 percentage points to 80.8%, driven by a 3.6 pp drop in product gross margin from reduced inventory-reserve release benefits and a 0.7 pp drop in service gross margin from higher cloud service costs tied to data-center and colocation expansion supporting SASE and SecOps workloads. Operating margin still improved 0.5 pp to 31.7% as revenue growth outpaced a 9% increase in operating expenses.
Fortinet continued a multi-quarter real-estate and infrastructure build-out: in Q3 it purchased $70.8M of properties in Canada and the UK (predominantly office space); across the nine months it also acquired $130.5M of properties in Canada, the US, and the Netherlands (data centers, offices, warehouses) and $54.5M in Germany (data center and office). The company estimates Q4 2025 capital expenditures at $60M–$110M and noted that service gross margin for full-year 2025 is expected to decline versus 2024 as data-center and colocation capacity expands.
During Q3, Fortinet repurchased 23.3M shares at a weighted-average price of $78.32 for an aggregate $1.83B (excluding a $17.7M excise-tax accrual). In August 2025 the board increased the repurchase authorization by $1.0B and extended the program to February 2027, bringing total authorization to $9.25B; however, only approximately $795.9M remained available after the Q3 buyback.
Two securities class actions were filed in the Northern District of California (September 22 and October 16, 2025) alleging false or misleading statements about Fortinet's business, operations, and prospects, including statements regarding the 2026 firewall refresh cycle, covering shares purchased between November 8, 2024 and August 6, 2025; a shareholder derivative suit was also filed on October 8, 2025. Fortinet stated it believes the cases are without merit, recorded no loss accrual, and characterized the outcome as uncertain.
