Financial Performance Highlights - Total billings grew by 15% year-over-year, reaching $1.778 billion in Q2 2025 [5, 21] - Unified SASE billings experienced significant growth of 21% year-over-year [5, 21] - SecOps billings also showed strong growth, increasing by 31% year-over-year [5, 21] - Total revenue increased by 14% year-over-year, reaching $1.630 billion in Q2 2025 [5, 31] - The company achieved a non-GAAP operating margin of 33% [5] - Unified SASE ARR (Annual Recurring Revenue) grew by 22% year-over-year, reaching $1.150 billion in Q2 2025 [26] - SecOps ARR grew by 35% year-over-year, reaching $463 million in Q2 2025 [27] - Adjusted Free Cash Flow reached $428 million [42] Product and Service Performance - Product revenue grew by 13% year-over-year [31] - Service revenue grew by 14% year-over-year [31] - The company shipped >50% of market global firewall units [7] Guidance - The company expects full year 2025 billings to be between $7.325 billion and $7.475 billion [47]

Press Release Fortinet Reports Second Quarter 2025 Financial Results Highlights SUNNYVALE, Calif. - August 6, 2025 - Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the second quarter ended June 30, 2025. "Our strong second quarter performance and consistent track record of growth are a direct result of our continued innovation and customer-first strategy, enabling us to beat our billings guidance for the quart ...

Core Insights - Fortinet reported strong financial results for Q2 2025, with revenue growth of 14% year-over-year to $1.63 billion and billings growth of 15% year-over-year to $1.78 billion, leading to an increase in full-year billings guidance by $100 million [5][6][3] Financial Performance - Revenue for Q2 2025 was $1.63 billion, up from $1.43 billion in Q2 2024 [20] - Billings for Q2 2025 reached $1.78 billion, compared to $1.54 billion in Q2 2024 [27] - Non-GAAP operating margin was 33% for Q2 2025, while GAAP operating margin was 28% [5][24] - Net income for Q2 2025 was $440.1 million, an increase from $379.8 million in Q2 2024 [21] Market Leadership - Fortinet was recognized as a leader in the 2025 Gartner Magic Quadrant for SASE Platforms and ranked 1 in the Critical Capabilities for SASE Platforms report for Secure Branch Network Modernization [6] - The company has over 1,400 issued patents worldwide, including more than 500 related to AI, reflecting significant R&D investment [6] Guidance - For Q3 2025, Fortinet expects revenue in the range of $1.67 billion to $1.73 billion and billings between $1.76 billion and $1.84 billion [5] - For the full fiscal year 2025, revenue is projected to be between $6.675 billion and $6.825 billion, with service revenue expected to be between $4.55 billion and $4.65 billion [5] Annual Recurring Revenue (ARR) - Unified SASE ARR increased by 22% year-over-year, while Security Operations ARR grew by 35% year-over-year [5]

Core Insights - Fortinet has announced a significant expansion of its FortiCloud infrastructure, introducing new services aimed at enhancing identity management, secure file storage, and communication for hybrid teams [1][2] - The new services, FortiIdentity, FortiDrive, and FortiConnect, are designed to integrate seamlessly into the Fortinet Security Fabric, providing organizations with security-native alternatives to traditional point products [1][6] Service Overview - **FortiIdentity**: A cloud-native identity and access management solution that offers secure single sign-on (SSO), multifactor authentication (MFA), and identity federation across applications, enhancing identity administration and scaling for enterprise needs [5][6] - **FortiDrive**: A secure file storage and collaboration solution that protects sensitive data with advanced encryption and access controls, enabling real-time collaboration and compliance enforcement [5][6] - **FortiConnect**: A unified communication platform that integrates with FortiDrive, providing secure calling, messaging, and meetings, supported by AI-powered threat intelligence [5][6] Infrastructure and Investment - Fortinet continues to invest in its global hybrid-cloud infrastructure, with data centers located in major cities such as Atlanta, Chicago, and Frankfurt, designed to deliver low-latency services and meet regional demand [3][4] - The company leverages over 160 points of presence (POPs) through partnerships with providers like Google Cloud and AWS to ensure high-performance delivery of edge services [4][7] Strategic Goals - The expansion of FortiCloud aligns with Fortinet's strategy to simplify security operations, reduce vendor sprawl, and empower hybrid work environments [2][8] - The unified platform approach aims to optimize costs, reduce operational complexity, and enhance visibility and protection across distributed environments [8]

Additional Resources and Related Links GPC Managed Network Security | Great Plains Communications Blair, Nebraska, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Great Plains Communications (GPC), the leading Midwestern telecommunications provider, today announced it will be leveraging Fortinet FortiGate Next- Generation Firewalls to deliver fully managed firewall and cybersecurity services. As small and medium-sized businesses increasingly rely on the public internet for mission-critical applications, GPC's high-speed ...

Core Viewpoint - Fortinet, Inc. (NASDAQ: FTNT) remains a favorable investment despite recent stock performance being flat since January and declining from its February peak [1] Company Analysis - The stock has shown volatility but is still considered a viable option for investors [1] - The analysis emphasizes a focus on financial metrics and business fundamentals rather than market narratives [1]

Core Insights - Notable companies reporting quarterly results include Disney, Fortinet, and Shopify, all of which have favorable Zacks Rank ratings [1] Disney – DIS - Disney is expected to report its fiscal third quarter results, with a Zacks Rank of 2 (Buy) [2] - The stock has risen over 30% in the last year, reaching a 52-week high of $124 in late June [2] - Cost-cutting initiatives and strategic pivots have led to strong performance, with major box office hits like Inside Out 2 and Lilo & Stitch grossing over $1 billion globally [3] - Streaming platforms Disney+ and Hulu have seen increased profitability, aided by measures against password sharing and the introduction of extra-member fees [3] - Q3 is projected to see 2% growth in revenue and 6% growth in earnings [3] - The forward earnings multiple stands at 20.1X, with a price-to-sales ratio below 2X, indicating value [4] Fortinet – FTNT - Fortinet, with a Zacks Rank of 2 (Buy), is gaining traction due to its AI-powered threat detection and post-quantum cryptography readiness [5] - Following a record Q1, Q2 revenue is expected to reach $1.62 billion, a 13% increase, with EPS projected to rise 3% to $0.59 [6] - Fortinet has exceeded earnings expectations for 29 consecutive quarters since May 2018, contributing to a stock gain of over 70% in the past year [6] Shopify – SHOP - Shopify holds a Zacks Rank of 1 (Strong Buy) and has seen its stock increase over 15% year-to-date, with a remarkable 140% gain over the last year [10] - The introduction of AI-powered tools has enhanced its commerce platform, driving popularity among merchants [10] - Strategic partnerships with Meta Platforms, Amazon, and TikTok have expanded Shopify's ecosystem [11] - Q2 sales are projected to rise 24% to $2.54 billion, with EPS expected to increase 8% to $0.28 [11] - Analysts anticipate Gross Merchandise Volume (GMV) to reach $81 billion, marking seven consecutive quarters of over 20% GMV growth [11] Conclusion - Disney, Fortinet, and Shopify are highlighted as key stocks to watch as they prepare to report quarterly results, with potential for further upside [13]

Core Insights - Fortinet (FTNT) is expected to report second-quarter 2025 results on August 6, with revenue projections between $1.59 billion and $1.65 billion, and non-GAAP earnings per share anticipated in the range of 58 to 60 cents, reflecting a year-over-year revenue growth of 12.9% [1][2] Financial Performance - The Zacks Consensus Estimate for second-quarter revenues is $1.62 billion, indicating a year-over-year growth of 12.9% [1] - The consensus estimate for earnings per share is 59 cents, showing a year-over-year increase of 3.51% [2] - Fortinet achieved a record first-quarter revenue of $1.54 billion, with a 14% growth and a record operating margin of 34% [5][10] Product Launches and Innovations - Fortinet launched the FortiGate 700G series, which offers up to 7 times higher firewall throughput and 4 times better threat protection compared to competitors, while consuming 7 times less power per gigabit [6][10] - The company also introduced an advanced AI-powered workspace security suite, enhancing its product portfolio [9] Market Position and Growth - Fortinet's strategic focus areas, such as Unified SASE, saw billings increase by 18%, accounting for 25% of total business, while AI-driven secure operations billings surged by 29% [5][10] - The company maintained its position as the number one deployed firewall vendor globally and a market leader in SD-WAN and OT security [10] Revenue Estimates by Region - Estimated revenues for the Americas in Q2 2025 are projected at $664.8 million, reflecting an 11.7% growth year-over-year [12] - Estimated revenues for Asia Pacific and Japan are pegged at $324.6 million, indicating an 18.6% growth year-over-year [12] - Estimated revenues for Europe, the Middle East, and Africa are projected at $629.5 million, suggesting an 11.4% decrease year-over-year [13] Stock Performance and Valuation - Fortinet's shares have gained 4.9% year-to-date, outperforming the Computer and Technology sector and the S&P 500 index [14] - The stock is trading at a significant premium, with a Price/Book ratio of approximately 37.97 compared to the industry's 17.52, reflecting high growth expectations [16] Investment Considerations - Despite premium valuation, Fortinet's record-setting first-quarter performance and strategic product launches position it for strong second-quarter results [18] - The company’s strong customer acquisition, exceeding 6,300 new logos, and robust free cash flow generation provide a solid foundation for continued outperformance [18][19]

Core Insights - Fortinet (FTNT) is expected to report quarterly earnings of $0.59 per share, a 3.5% increase year-over-year, with revenues projected at $1.62 billion, reflecting a 12.9% year-over-year growth [1] Revenue Estimates - Analysts estimate 'Revenue- Services' at $1.12 billion, indicating a 14.4% increase from the prior-year quarter [4] - The 'Revenue- Product' is projected at $495.98 million, suggesting a 9.8% year-over-year change [4] - 'Revenue- Europe Middle East and Africa' is expected to reach $648.03 million, marking a 14.7% increase from the previous year [4] - 'Geographic revenues- Total Americas' is likely to be $666.43 million, reflecting a 12% increase year-over-year [5] - 'Revenue- Asia Pacific and Japan' is projected at $311.61 million, indicating a 13.8% increase from the year-ago quarter [5] Financial Metrics - Total billings (Non-GAAP) are projected to reach $1.72 billion, up from $1.54 billion year-over-year [6] - Total deferred revenue is estimated at $6.52 billion, compared to $5.90 billion from the previous year [6] - Gross profit- Product Non-GAAP is expected to be $321.40 million, an increase from $298.40 million in the same quarter last year [6] - Gross profit- Service Non-GAAP is projected at $982.83 million, up from $870.20 million year-over-year [7] - Gross profit- Product is expected to reach $316.85 million, compared to $296.80 million from the previous year [7] - Gross profit- Services is estimated at $983.06 million, an increase from $862.50 million year-over-year [7] Stock Performance - Fortinet shares have decreased by 5.5% in the past month, contrasting with the Zacks S&P 500 composite's increase of 2.3% [8] - With a Zacks Rank 2 (Buy), Fortinet is expected to outperform the overall market in the near term [8]

Cybersecurity Sector Overview - Cybersecurity has shown consistent performance, with the Amplify ETF (HACK) up over 16% year-to-date, outperforming the S&P 500's 8% increase [1] - Major companies in the cybersecurity space, such as Fortinet and Palo Alto Networks, are positioned for potential breakouts after periods of consolidation [2] Fortinet (FTNT) Analysis - Fortinet's stock has been consolidating in a range between $100 and $110, forming a bullish coiled base, with a breakout area defined near the $110 zone [2][3] - The upcoming earnings report on August 6 could serve as a catalyst for overcoming resistance [3] - Fortinet's Q1 2025 earnings were $0.58 per share, beating consensus by $0.05, with a revenue increase of 13.8% year-over-year [3] Palo Alto Networks (PANW) Analysis - Palo Alto Networks has been consolidating between $180 and $210 for nearly a year, with a significant breakout potential if the $210 resistance is breached [6][7] - The stock has appreciated 127% over the past three years and over 500% in the last decade, despite a year-to-date performance of only 6.5% [6][7] - Recent earnings showed EPS of $0.80, exceeding estimates by $0.03, with a revenue increase of 15.3% year-over-year [8] - Speculation around a potential $25 billion acquisition of CyberArk has created mixed reactions, with some analysts supporting the strategic move [9][10] Market Sentiment and Analyst Views - Analysts currently hold a neutral stance on Fortinet, with valuation considered reasonable relative to the sector [4] - Jefferies analysts support the potential CyberArk acquisition by Palo Alto, maintaining a price target of $235 for the stock [10]