Fortinet stock tracks stronger outlook after Q3 growth

Fortinet reported strong third-quarter results on October 28, with revenue and billings growth ahead of the comparable period a year earlier. In its financial results release, the cybersecurity company also raised its 2026 outlook for revenue, billings, operating margin and non-GAAP earnings per share.

Revenue for the quarter ended September 30 reached 2.078 billion US dollars, up 20 percent from 1.725 billion US dollars in the prior-year quarter. Product revenue rose 37 percent to 765 million US dollars, while service revenue increased 13 percent to 1.313 billion US dollars. The different growth rates show that hardware and product demand was the stronger contributor to reported expansion during the period.

Billings lead revenue growth

Total billings climbed 29 percent to 2.336 billion US dollars from 1.808 billion US dollars a year earlier. Fortinet defines billings as GAAP revenue plus the change in deferred revenue, less deferred revenue acquired in a business combination. The measure can point to future revenue and cash generation, but it does not determine when subscription and support contracts are recognized as revenue.

Profitability also improved on an adjusted basis. GAAP operating margin was 33.9 percent, compared with 31.7 percent in the year-earlier quarter. Non-GAAP operating margin reached 38.2 percent versus 36.9 percent. GAAP diluted earnings per share increased to 0.86 US dollars from 0.62 US dollars, while non-GAAP diluted earnings per share rose to 0.91 US dollars from 0.74 US dollars.

Fortinet generated 946.0 million US dollars in operating cash flow and 864.8 million US dollars in free cash flow. The company also increased its share repurchase authorization by 1.2 billion US dollars, leaving 2.0 billion US dollars available under the authorization cited in the release.

Higher full-year targets

For the fourth quarter, Fortinet expects revenue of 2.155 billion to 2.245 billion US dollars and billings of 2.775 billion to 2.925 billion US dollars. The company projects non-GAAP diluted earnings per share of 0.93 to 0.95 US dollars and a non-GAAP operating margin of 35.5 percent to 37.5 percent.

For fiscal 2026, the new revenue range is 8.125 billion to 8.215 billion US dollars, while billings are expected at 9.568 billion to 9.718 billion US dollars. Service revenue is forecast at 5.150 billion to 5.170 billion US dollars. Fortinet projects a non-GAAP operating margin of 36.5 percent to 37.5 percent and non-GAAP diluted earnings per share of 3.54 to 3.58 US dollars.

Management linked the performance to broad demand across its portfolio and highlighted security needs created by artificial intelligence. The release also cited new AI security services, collaborations with Oracle and NVIDIA, and Fortinet's platform approach. For investors, the key issue is whether elevated billings can convert into service revenue while margins remain within the new target ranges.

Stock context and next company date

Fortinet stock traded at 114.95 euros on Lang & Schwarz at 13:35 CET on Thursday, November 12, 2026.

Investors can track the broader US equity market through the S&P 500.

Fortinet is scheduled to present at the BMO Technology and Innovation Leaders Conference on November 12, followed by the UBS Global Technology and AI Conference on December 2 and the Barclays Global Technology Conference on December 9. More news and analyses on Fortinet stock.