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]

Core Insights - Fortinet reported strong quarterly earnings of 81 cents per share, exceeding the consensus estimate of 74 cents [2] - Quarterly revenue reached $1.91 billion, surpassing the Street estimate of $1.86 billion [2] Financial Performance - Product revenue increased by 20% year-over-year to $691 million [4] - Total billings grew by 18% to $2.37 billion [4] - Unified SASE billings experienced significant growth of 40% [4] - Non-GAAP operating margin stood at 37% [4] Future Outlook - For fiscal 2026, Fortinet anticipates adjusted EPS in the range of $2.94 to $3, aligning with the $2.94 estimate [3] - Revenue expectations for fiscal 2026 are set between $7.5 billion and $7.7 billion, compared to the $7.51 billion estimate [3] Market Reaction - Following the earnings report, Fortinet's stock rose by 2.69% to $81.62 in extended trading [4]

| . | | --- | | . | | = . | | . | | . 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 ...

Press Release Fortinet Reports Strong Fourth Quarter and Full Year 2025 Financial Results Fourth Quarter 2025 Highlights Full Year 2025 Highlights SUNNYVALE, Calif. - February 5, 2026 - Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the fourth quarter of 2025 and full year ended December 31, 2025. "We are pleased with our strong finish to the year, highlighted by an excellent fourth quarter driven by broad- ba ...

Fourth Quarter 2025 Highlights Revenue grew 15% year over year to $1.91 billionProduct revenue grew 20% year over year to $691 millionBillings grew 18% to $2.37 billion1Unified SASE billings grew 40%GAAP operating margin of 33% Non-GAAP operating margin of 37%1 Full Year 2025 Highlights Revenue grew 14% year over year to $6.80 billionProduct revenue grew 16% year over year to $2.22 billionBillings grew 16% to $7.55 billion1Unified SASE & SecOps billings grew 24%GAAP operating margin of 31%Non-GAAP operating ...

Core Viewpoint - Fortinet, Inc. is expected to report a modest earnings beat for Q4, with analysts maintaining a cautious outlook for 2026 due to high expectations in key metrics [1][2][4]. Group 1: Earnings Expectations - Fortinet is scheduled to report its fourth-quarter earnings on February 5, with expectations to exceed consensus billings growth estimates of 12% year-over-year by 1-2% [2][4]. - The anticipated growth is supported by improved survey data, indicating a positive sentiment towards the company's performance [2][4]. Group 2: Analyst Sentiment - Jefferies analyst Joseph Gallo reiterated a Hold rating on Fortinet with a price target of $80.00, reflecting a cautious stance due to the current weak sentiment towards software stocks [1][3]. - The firm is waiting for clearer visibility into potential product refreshes and a rebound in services in the second half of 2026 before becoming more constructive on the stock [3][4]. Group 3: Future Outlook - Several metrics for 2026, including consensus expectations for billings growth (11% YoY), services revenue growth (13% YoY), and operating margins (34%), suggest high expectations that may be challenging to meet [2][4]. - Despite acknowledging Fortinet's potential, analysts believe other AI stocks may offer greater upside potential with less downside risk [5].

Investors with a lot of money to spend have taken a bullish stance on Fortinet (NASDAQ:FTNT).And retail traders should know.We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with FTNT, it often means somebody knows something is about to happen.So how do we know what these investors just did? Today, Benzinga's options scanner spotted ...

Key Takeaways Fortinet to report Q4 on Feb. 5, guiding revenues of $1.825-$1.885B and non-GAAP EPS of 73-75 cents.FTNT highlighted AI data center moves, including Arista partnership and NVIDIA BlueField-3 integration.Fortinet guided Q4 non-GAAP operating margin of 34.5-35.5% amid planned infrastructure investments.Fortinet (FTNT) is scheduled to report fourth-quarter 2025 results on Feb. 5, after market close.The cybersecurity firm projects revenues between $1.825 billion and $1.885 billion. The Zacks Conse ...

Core Viewpoint - Fortinet, Inc. has been downgraded by Scotiabank from Sector Outperform to Sector Perform, with a price target set at $85, due to concerns that the optimism surrounding its growth in 2026 is overstated [1][2]. Company Overview - Fortinet is recognized as a strong cybersecurity company that provides enterprise-level next-generation firewalls and network security solutions, utilizing artificial intelligence in its products [2][3]. - The company is considered legendary in its field, with a compelling offering in core secure networking [1]. Analyst Insights - The downgrade is based on recent quantitative analysis and feedback from Chief Information Security Officers (CISOs) at mid to large-sized enterprises, indicating a less optimistic outlook for Fortinet in 2026 [2]. - Analysts suggest that while Fortinet has potential, other AI stocks may present greater upside potential and lower downside risk [2].

Core Insights - The article discusses the economic updates, geopolitical tensions, and earnings reports that characterized January, highlighting the political situation in Venezuela and U.S. President Trump's actions regarding Greenland [2] - It emphasizes the importance of identifying safe investment stocks for February, with a focus on historical performance data [3] Stock Performance Summary - The analysis presents a list of 25 stocks deemed safe for investment, showcasing their average returns, median returns, and the percentage of positive returns over the past decade [4] - Fortinet (FTNT) leads the list with an average return of 8.5% and a 90% positive return rate, despite recent underperformance [4][7] - Other notable stocks include Axon (AXON) with a 7.45% average return and 90% positive return rate, and LID in the media sector with a 13.98% average return and 89% positive return rate [4] Fortinet (FTNT) Analysis - Fortinet's stock experienced a 5.2% increase following an upgrade from TD Cowen, which cited stable AI spending as a factor [5] - The stock is currently positioned at $81.02, with potential to rise to $87.90, marking a significant recovery from a previous 20% year-over-year deficit [7] - There is a prevailing bearish sentiment among short-term traders, indicated by a put/call open interest ratio of 1.19, which could shift positively if sentiment changes [8] Market Overview - The major indexes closed in the red at the end of January, with the Dow Jones Industrial Average experiencing its longest monthly win streak since January 2018 [9] - Despite the negative close, the indexes managed to achieve modest gains for January, setting the stage for potential volatility in February [9]