Fortinet Stock Falls On Q3 Earnings: The Details

Financial Performance - Fortinet reported third-quarter revenue of $1.73 billion, exceeding the consensus estimate of $1.70 billion [2] - Total revenue increased by 14% year-over-year, with product revenue at $559.3 million (up 18% year-over-year) and service revenue totaling $1.17 billion [3] - Third-quarter billings rose 14% year-over-year to $1.81 billion [3] Earnings Results - The company posted adjusted earnings of 74 cents per share, surpassing analyst estimates of 63 cents per share [2] - Fortinet expects fourth-quarter revenue to range from $1.825 billion to $1.885 billion, compared to estimates of $1.876 billion [5] - Anticipated fourth-quarter adjusted earnings are projected to be between 73 cents and 75 cents per share, exceeding estimates of 67 cents per share [5] Guidance and Outlook - Fortinet narrowed its full-year 2025 revenue guidance to a range of $6.72 billion to $6.78 billion, against estimates of $6.75 billion [5] - The company raised its full-year 2025 adjusted earnings guidance to $2.66 to $2.70 per share, up from previous estimates of $2.47 to $2.53 per share [6] - Analysts are forecasting full-year earnings of $2.52 per share [6] Market Reaction - Following the earnings report, Fortinet shares fell by 10.11% in after-hours trading, priced at $77.30 [6]