Core Insights - Fortinet (FTNT) reported strong fourth-quarter 2025 results, with both earnings and revenues exceeding expectations and showing year-over-year growth [2][9] Financial Performance - Non-GAAP earnings per share (EPS) for Q4 2025 was 81 cents, surpassing the Zacks Consensus Estimate by 9.46% and increasing by 9.5% year over year [2][9] - Total revenues reached $1.9 billion, beating the consensus mark by 2.54% and growing 15% year over year, driven by strong demand across its portfolio [3][9] - Total billings increased by 18% year over year to $2.37 billion, with Unified SASE leading the growth at 40% [4][9] Revenue Breakdown - Product revenues rose 20% year over year to $691.1 million, accounting for 36.3% of total revenues, supported by strong demand for multiproduct deals and operational technology security [5] - Service revenues grew 12% year over year to $1.21 billion, making up 63.7% of total revenues, with 7,200 new organizations added to the customer base [6] Margins and Profitability - Total gross margin was 79.6%, a decrease of 160 basis points year over year, while product gross margin fell to 66.9% and service gross margin remained at 86.8% [7] - Operating margin improved by 90 basis points year over year to 33% on a GAAP basis, with a non-GAAP operating margin of 37.3% [7] Balance Sheet and Cash Flow - Fortinet ended Q4 2025 with cash and cash equivalents of $3.58 billion, an increase from $3.12 billion at the end of Q3 2025 [8] - Cash flow from operations was $620.2 million for Q4 2025, down from $655.2 million in the previous quarter, while free cash flow increased to $577.4 million [8] Guidance - For Q1 2026, Fortinet expects revenues between $1.7 billion and $1.76 billion, with billings estimated between $1.77 billion and $1.87 billion [10] - For the full year 2026, revenues are projected to be between $7.50 billion and $7.70 billion, with billings expected in the range of $8.4 billion to $8.6 billion [11]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - The cybersecurity provider is expected to navigate the post-earnings chaos effectively following a positive earnings report [1] Group 1: Earnings Performance - The company reported an earnings beat, indicating stronger than expected financial performance [1] Group 2: Market Reaction - There is optimism that the company could mitigate potential negative impacts in the market following its earnings announcement [1]

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Fortinet (FTNT) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +9.86%. A quarter ago, it was expected that this network security company would post earnings of $0.63 per share when it actually produced earnings of $0.74, delivering a surprise of +17.46%.Over the last four quarters, t ...

Fortinet (NasdaqGS:FTNT) Q4 2025 Earnings call February 05, 2026 04:30 PM ET Company ParticipantsAnthony Luscri - Vice President of Investor RelationsChristiane Ohlgart - CFOFatima Boolani - Managing DirectorGabriela Borges - Managing DirectorJohn Whittle - COOKen Xie - Founder, Chairman, and CEORob Owens - Managing DirectorShaul Eyal - Managing DirectorConference Call ParticipantsAdam Borg - Equity Research AnalystBrian Essex - Equity Research AnalystJunaid Siddiqui - Equity Research AnalystPatrick Colvill ...

Fortinet (NasdaqGS:FTNT) Q4 2025 Earnings call February 05, 2026 04:30 PM ET Company ParticipantsAnthony Luscri - Vice President of Investor RelationsChristiane Ohlgart - CFOFatima Boolani - Managing DirectorGabriela Borges - Managing DirectorJohn Whittle - COOKen Xie - Founder, Chairman, and CEORob Owens - Managing DirectorShaul Eyal - Managing DirectorConference Call ParticipantsAdam Borg - Equity Research AnalystBrian Essex - Equity Research AnalystJunaid Siddiqui - Equity Research AnalystPatrick Colvill ...

Financial Data and Key Metrics Changes - Total billings grew by 18% to $2.37 billion in Q4 2025, driven by strong growth in Unified SASE and operational technology security [13][20] - Total revenue increased by 15% to $1.91 billion, with product revenue up over 20% to $691 million and service revenue growing 12% to $1.21 billion [15][21] - Operating margin was strong at 37.3%, exceeding guidance, while gross margin was 80.3% [20][22] - Free cash flow reached $577 million, representing a margin of 31% [20][23] Business Line Data and Key Metrics Changes - Unified SASE billings grew 40%, representing 27% of total billings, indicating strong demand for cloud security solutions [6][15] - Operational technology solutions saw billings growth of over 25%, driven by demand for both hardware and software [9][14] - AI-driven SecOps billings grew 6% in Q4 and 22% for the full year, with annual recurring revenue (ARR) up 21% [9][15] Market Data and Key Metrics Changes - The U.S. and Europe were the largest contributors to growth in $1 million-plus deals, each delivering more than 30% growth [14] - 16% of large enterprise customers purchased FortiSASE, an increase of over 50%, highlighting continued expansion [13][15] - The company maintains a leading position in the firewall market with a 55% unit market share [5] Company Strategy and Development Direction - The company aims to continue growing faster than the overall market, targeting a billings and revenue CAGR above 12% [10][26] - Focus on integrating networking and security through FortiOS, which enhances performance and reduces total cost of ownership [6][12] - Continued investment in R&D, particularly in AI-driven security and quantum readiness, supports rapid innovation and organic growth [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained growth driven by strong demand across cybersecurity markets, including Secure Networking and Unified SASE [11][32] - The company anticipates service revenue growth to accelerate in the second half of 2026, driven by product revenue growth [24][26] - Management highlighted the importance of addressing supply chain challenges and maintaining healthy margins through strategic pricing [41][42] Other Important Information - The company has a disciplined approach to capital allocation, with a focus on maintaining the Rule of 45 and strong free cash flow generation [12][13] - A $1 billion increase in the authorized stock repurchase amount was approved by the board of directors [20] Q&A Session Summary Question: What drove the strength in Unified SASE billings and the strong guidance for 2026? - Management attributed the 40% growth in Unified SASE to unique advantages such as Sovereign SASE and the integration of network security, SD-WAN, and SASE on a single OS [30][31] Question: How is the company navigating the current environment regarding memory prices? - The company has prepared for supply chain issues by maintaining inventory and adjusting prices to manage margins effectively [41][42] Question: What is the revenue mix between Sovereign and public SASE? - Management indicated that the Sovereign SASE market is likely larger than the public SASE market, with strong growth expected due to a lack of competition in this area [49] Question: How does the company view the potential for AI to impact cybersecurity? - Management sees AI as an opportunity to enhance cybersecurity measures and control data leakage, with significant demand for AI-driven solutions [36][38] Question: What is the company's approach to M&A? - The company remains open to M&A opportunities, particularly in secure operations, but emphasizes a disciplined approach to acquisitions [86]

Here's a look at the key figures from the quarter. FTNT stock is moving. Watch the price action here.The Details: Fortinet reported quarterly earnings of 81cents per share, which beat the consensus estimate of 74 cents, according to data from Benzinga Pro.Quarterly revenue came in at $1.91 billion, which beat the Street estimate of $1.86 billion.Fortinet reported the following fourth quarter highlights:Product revenue grew 20% year-over-year to $691 millionBillings grew 18% to $2.37 billionUnified SASE bill ...

| . | | --- | | . | | = . | | . | | . 1 ロ | | ロ . - | | . | Q4 2025 Earnings Presentation February 5, 2026 Safe Harbor Statement Information, statements and projections contained in these presentation slides and related conference call concerning Fortinet's business outlook, the first quarter and full year 2026 guidance, and future prospects and expectations are forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications rela ...