Fortinet earnings: guidance, results and what to watch
Fortinet's next results are expected on October 28, 2026. Watch whether Fortinet's service growth accelerates and billings support the remaining annual target.
What has Fortinet guided for 2026?
Fortinet offers modest upside through October 2029, but it hinges on hardware demand creating durable service growth. Management guides to 19% revenue growth and 14% service-revenue growth for 2026, with a 35%–37% non-GAAP operating margin that excludes selected costs, including stock-based compensation. Weighted value is $188.44 in October 2027, a 2% return, and $226.97 in October 2029, a 23% return, with dividends included. The bear-to-bull range is $119.24–$349.86 per share. The cases carry 25% bear, 55% base and 20% bull probabilities. The October 28, 2026 results should test service growth, billings and whether infrastructure spending stays within guidance. Longer term, replacement sales must become new deployments and renewals, while FortiSASE and Security Operations expand inside existing accounts. The investment turns on whether FortiGate demand compounds into services rather than merely refreshing hardware.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Revenue | Quarter to Sep 2026 | 2,010.0 | 2,100.0 | Jul 29, 2026 |
| Billings | Quarter to Sep 2026 | 2,250.0 | 2,350.0 | Jul 29, 2026 |
| Non-GAAP operating margin | Quarter to Sep 2026 | 35.0% | 37.0% | Jul 29, 2026 |
| Revenue | Year to Dec 2026 | 8,020.0 | 8,180.0 | Jul 29, 2026 |
| Service revenue | Year to Dec 2026 | 5,180.0 | 5,220.0 | Jul 29, 2026 |
| Billings | Year to Dec 2026 | 9,350.0 | 9,550.0 | Jul 29, 2026 |
| Non-GAAP operating margin | Year to Dec 2026 | 35.0% | 37.0% | Jul 29, 2026 |
Did Fortinet keep its past promises?
Fortinet met its annual revenue forecast, but that did not settle the refresh question. Management forecast 2025 revenue of US$6.65 billion–US$6.85 billion. It delivered US$6,799.6 million, within that range. Yet Fortinet could invoice some customers early, recognise service revenue from existing contracts and sell newer products while replacement demand arrived later than expected.
What do Fortinet's last eight quarters show?
Revenue growth slowed and then recovered, while operating margin improved steadily. Free cash flow yield is thin; real free cash flow margin, computed from cash from operations minus capital spending, tests cash generation after stock-based pay, while net cash provides a cushion. Service growth is the key number, and diluted share count fell as buybacks and stock-based pay shaped the per-share result.
| Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2,047.9 | 1,849.6 | 1,905.0 | 1,724.9 | 1,630.0 | 1,539.7 | 1,660.1 | 1,508.1 |
| Gross margin | 80.2% | 80.3% | 79.6% | 80.8% | 80.7% | 81.0% | 81.1% | 82.5% |
| Operating income | 689.3 | 580.0 | 625.6 | 547.3 | 458.0 | 453.8 | 574.1 | 470.9 |
| Net income | 606.3 | 534.5 | 506.0 | 473.9 | 440.1 | 433.4 | 526.2 | 539.9 |
| EPS, diluted | 0.82 | 0.72 | 0.68 | 0.62 | 0.57 | 0.56 | 0.68 | 0.70 |
| = Free cash flow | 965.6 | 1,006.5 | 577.4 | 567.5 | 284.1 | 796.8 | 380.0 | 571.8 |
What this means. These numbers are for each three-month quarter, even though some row descriptions say “year.”
What should I watch in Fortinet's next results?
The October 28 results will test whether Fortinet’s raised outlook rests on lasting service demand rather than a temporary equipment wave.
The immediate questions are whether service growth accelerates, billings support the remaining annual target and infrastructure spending stays within guidance. Product revenue alone cannot answer them, because a firewall sale arrives before the subscriptions attached to it produce their full revenue.