Fortinet 8-K
PositiveEarningsGuidance raised
Product revenue surged 52% Y/Y as revenue and profitability beat guidance; FY2026 revenue outlook raised
Filed 2026-07-29 16:08 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 revenue guidance. Revenue grew 26% Y/Y, with product revenue up 52%; Fortinet said results exceeded the high end of its Q2 revenue and profitability guidance. It raised its FY2026 revenue outlook to $8.02B–$8.18B, equivalent to 19% Y/Y growth.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $2.05B | $1.63B | 25.6% |
| Operating income, GAAP | $689M | $458M | 50.5% |
| Operating income, non-GAAP | $779M | $540M | 44.3% |
| Net income, GAAP | $606M | $440M | 37.8% |
| Diluted EPS, GAAP | $0.82 | $0.57 | 43.9% |
| Diluted EPS, non-GAAP | $0.90 | $0.64 | 40.6% |
| Operating cash flow | $1.04B | $452M | 131% |
| Free cash flow, non-GAAP | $966M | $284M | 240% |
| Billings, non-GAAP | $2.37B | $1.78B | 33.4% |
- Product revenue rose 52% to $773M; service revenue increased 14% to $1.27B.
- Q2 free cash flow was $966M, equal to a 47.2% margin. At 6/30/2026, cash and cash equivalents were $2.93B and long-term debt was $497M.
- YTD share repurchases were $973M vs $401M in the prior-year period; six-month diluted weighted-average shares fell to 741M from 775M. Fortinet also repaid $500M of senior notes during the first half.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue, GAAP | Q3 2026 | $2.01B–$2.1B | — | — |
| Billings, non-GAAP | Q3 2026 | $2.25B–$2.35B | — | — |
| Gross margin, non-GAAP | Q3 2026 | 79%–81% | — | — |
| Operating margin, non-GAAP | Q3 2026 | 35%–37% | — | — |
| Diluted net income per share, non-GAAP | Q3 2026 | $0.83–$0.87 | — | — |
| Revenue, GAAP | FY2026 | $8.02B–$8.18B; 19% Y/Y growth | — | Raised |
| Service revenue, GAAP | FY2026 | $5.18B–$5.22B | — | — |
| Billings, non-GAAP | FY2026 | $9.35B–$9.55B | — | — |
| Gross margin, non-GAAP | FY2026 | 79%–81% | — | — |
| Operating margin, non-GAAP | FY2026 | 35%–37% | — | — |
| Diluted net income per share, non-GAAP | FY2026 | $3.41–$3.47 | — | — |
Q3 and FY2026 non-GAAP EPS guidance assumes an 18% non-GAAP effective tax rate and diluted shares of 741M–745M.
Investor Takeaways
- Q3 revenue and billings against their respective guided ranges will show whether the growth pace continues.
- FY2026 revenue performance against the raised $8.02B–$8.18B range will test the company’s higher growth outlook.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3