Core Insights - Fortinet reported strong financial results for Q1 2025, with a non-GAAP operating margin of 34%, up 570 basis points year over year, and billings growth of 14% year over year [3][5][6]. Financial Performance - Total revenue reached $1.54 billion, reflecting a 14% increase from $1.35 billion in Q1 2024 [5][6]. - Product revenue was $459 million, up 12% from $408.9 million in the same quarter last year [5][6]. - Service revenue amounted to $1.08 billion, a 14.4% increase compared to $944.4 million in Q1 2024 [6]. - Total billings were $1.60 billion, marking a 13.5% increase from $1.41 billion in Q1 2024 [6]. - Remaining performance obligations stood at $6.49 billion, up 11.7% year over year, with an expected revenue recognition of approximately $3.38 billion over the next 12 months [6]. Growth Areas - Unified SASE Annual Recurring Revenue (ARR) increased by 26% to $1.15 billion, while Security Operations ARR grew by 30% to $434.5 million [5][6]. - The company continues to invest in Unified SASE and Security Operations markets, aiming to strengthen its leadership in Secure Networking [3]. Profitability Metrics - GAAP operating income was $453.8 million, with a GAAP operating margin of 29.5%, compared to 23.7% in Q1 2024 [6][29]. - Non-GAAP operating income reached $526.2 million, resulting in a non-GAAP operating margin of 34.2%, up from 28.5% in the previous year [6][32]. - GAAP net income was $433.4 million, with diluted net income per share of $0.56, compared to $299.3 million and $0.39 per share in Q1 2024 [6][29][32]. Cash Flow and Liquidity - Cash flow from operations was a record $863 million, compared to $830.4 million in Q1 2024 [5][12]. - Free cash flow also set a record at $783 million, up from $608.5 million in the same quarter last year [12][35]. Guidance - For Q2 2025, Fortinet expects revenue between $1.590 billion and $1.650 billion, and billings between $1.685 billion and $1.765 billion [12]. - For the full fiscal year 2025, revenue is projected to be in the range of $6.650 billion to $6.850 billion [12].