Fortinet 8-K
PositiveEarningsGuidance raised
Broad-based demand lifts FY2026 revenue guidance to 20% Y/Y growth; new FortiGuard Inline AI Security extends the AI-security push.
Filed 2026-10-28 16:09 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with Q4 and FY2026 guidance. Fortinet reported broad-based demand and raised FY2026 revenue guidance to 20% Y/Y growth; it also raised billings guidance for the third time this year. The company is positioning its FortiOS and FortiASIC-powered security and networking platform as a foundation for protecting AI infrastructure, including with its new FortiGuard Inline AI Security service and AI-security collaborations involving NVIDIA, Oracle and Microsoft.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $2.08B, +20.5% Y/Y | $5.98B, +22.1% Y/Y |
| GAAP gross margin | 79.0%, vs 80.8% | 79.8%, vs 80.8% |
| Non-GAAP gross margin | 79.6%, vs 81.6% | — |
| Operating income | $704M, +28.7% Y/Y | $1.97B, +35.3% Y/Y |
| Non-GAAP operating margin | 38.2%, vs 36.9% | — |
| Net income | $636M, +34.1% Y/Y | $1.78B, +31.8% Y/Y |
| Diluted EPS | $0.86, +38.7% Y/Y | $2.39, +36.6% Y/Y |
| Non-GAAP diluted EPS | $0.91, +23.0% Y/Y | — |
| Operating cash flow | $946M, +44.4% Y/Y | $3.07B, +55.6% Y/Y |
| Free cash flow | $865M, +52.4% Y/Y | — |
- Product revenue grew 37% Y/Y to $765M; service revenue was $1.31B, up 13%. Billings, which Fortinet defines as revenue plus the change in deferred revenue less acquired deferred revenue, rose 29% to $2.34B. The deferred-revenue increase was $259M, vs $82.8M a year earlier.
- 9M share repurchases were $973M, vs $2.23B in the prior-year period. Q3 diluted weighted-average shares were 742.6M, vs 761.2M, down 2.4% Y/Y. Fortinet increased its repurchase authorization by $1.2B, leaving $2.0B available.
- Cash and cash equivalents were $3.75B at 9/30/2026, vs $2.50B at 12/31/2025. Fortinet repaid $500M of senior notes during the first nine months; long-term debt was $497M at quarter-end.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Revenue, GAAP | Q3 2026 | $2.01B–$2.1B | $2.08B | in line |
| Gross margin, non-GAAP | Q3 2026 | 79%–81% | 79.6% | in line |
| Operating margin, non-GAAP | Q3 2026 | 35%–37% | 38.2% | beat |
| Diluted net income per share, non-GAAP | Q3 2026 | $0.83–$0.87 | $0.91 | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q4 2026 | $2.155B-$2.245B | — | — |
| Billings | Q4 2026 | $2.775B-$2.925B | — | — |
| Non-GAAP gross margin | Q4 2026 | 78.0%-80.0% | — | — |
| Non-GAAP operating margin | Q4 2026 | 35.5%-37.5% | — | — |
| Diluted non-GAAP EPS | Q4 2026 | $0.93-$0.95; 18% non-GAAP effective tax rate; 741M-745M diluted shares | — | — |
| Revenue | FY2026 | $8.125B-$8.215B; 20% Y/Y growth | — | Raised |
| Service revenue | FY2026 | $5.150B-$5.170B | — | — |
| Billings | FY2026 | $9.568B-$9.718B | — | Raised |
| Non-GAAP gross margin | FY2026 | 79.7%-80.3% | — | — |
| Non-GAAP operating margin | FY2026 | 36.5%-37.5% | — | — |
| Diluted non-GAAP EPS | FY2026 | $3.54-$3.58; 18% non-GAAP effective tax rate; 741M-743M diluted shares | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Revenue | FY2026 | $8.02B–$8.18B; 19% Y/Y growth | $8.125B-$8.215B; 20% Y/Y growth | raised |
| Service revenue | FY2026 | $5.18B–$5.22B | $5.150B-$5.170B | lowered |
| Billings | FY2026 | $9.35B–$9.55B | $9.568B-$9.718B | raised |
| Non-GAAP gross margin | FY2026 | 79%–81% | 79.7%-80.3% | narrowed (raised low end, lowered high end) |
| Non-GAAP operating margin | FY2026 | 35%–37% | 36.5%-37.5% | raised |
| Diluted non-GAAP EPS | FY2026 | $3.41–$3.47 | $3.54-$3.58; 18% non-GAAP effective tax rate; 741M-743M diluted shares | raised |
Investor Takeaways
- Q4 revenue and billings will test whether the demand momentum behind Q3’s growth carries into the next quarter.
- Watch product revenue and billings growth against Q3’s 37% and 29% Y/Y increases, respectively, for evidence that demand is continuing across Fortinet’s portfolio.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-28 22:37:55Z