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 ...

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 is actively participating in the World Economic Forum Annual Meeting to address global cybercrime challenges and promote strategies for accountability and deterrence in the cybersecurity landscape [1][4][10] Group 1: Fortinet's Role and Initiatives - Fortinet is a founding member of the World Economic Forum's Centre for Cybersecurity and is involved in various initiatives aimed at combating cybercrime, including the Cybercrime Bounty program [1][3] - Derek Manky, Chief Security Strategist at Fortinet, will present on incentivizing intelligence sharing and collaborative efforts to disrupt the cybercrime ecosystem during the forum [2][5] - The Cybercrime Bounty program is highlighted as a key initiative to disrupt the growing cybercrime market, emphasizing the importance of building alliances across sectors [2][3] Group 2: Economic Impact of Cybercrime - The annual losses from cybercrime are estimated to exceed $11 trillion, with the rise of AI-enabled cybercrime exacerbating the situation [5] - Organizations are facing an increasing number of tailored cyberattacks, necessitating collaborative approaches to enhance cybersecurity resilience [5][10] Group 3: Forum's Objectives and Discussions - The World Economic Forum Annual Meeting aims to foster dialogue among leaders from various sectors to address shared challenges and promote innovations for a better future [6][8] - Key discussions will focus on the paradigm shift in technology and its implications for cybersecurity, emphasizing the need for trust and collaboration [9][10]

Core Insights - Fortinet will hold a conference call on February 5, 2026, to discuss its fourth quarter and full year 2025 financial results [1] - The conference call will be available in listen-only mode on Fortinet's investor relations website [2] Company Overview - Fortinet is a leader in cybersecurity, focusing on the convergence of networking and security, with a mission to secure people, devices, and data globally [3] - The company offers an extensive portfolio of over 50 enterprise-grade cybersecurity products, trusted by over half a million customers [3] - Fortinet's training institute is one of the largest in the industry, aimed at providing cybersecurity training and career opportunities [3] - Collaboration with public and private sector organizations is a key aspect of Fortinet's commitment to enhancing global cyber resilience [3] - FortiGuard Labs utilizes advanced machine learning and AI technologies to deliver top-rated protection and actionable threat intelligence [3]

Core Insights - Fortinet's Total Economic Impact study reveals a 308% return on investment (ROI) and payback period of less than six months for organizations deploying Fortinet Secure LAN Edge [1][5] - The study indicates a 60% reduction in the risk of breaches from external attacks and a 50% increase in network operations efficiency [1][5] Financial Metrics - The composite organization achieved benefits of $13.1 million over three years against costs of $3.2 million, resulting in a net present value of $9.9 million [5] - The reduction in exposure to costly material breaches is estimated at $1.6 million due to enhanced network perimeter protection [5] Operational Efficiency - Organizations reported a 50% increase in network operations efficiency, translating to $1.3 million in operational savings [5] - The consolidation of management into a single interface eliminated redundant tasks and accelerated troubleshooting [5] Cost Savings - Customers experienced a 20% reduction in networking and security technology costs, leading to an additional profit of $2.6 million from improved availability [5] - Improved network security response time was reduced by 75%, valued at $653,000 for the composite organization [5] Security Enhancements - Fortinet Secure LAN Edge provides protection at the point of connection, effectively catching issues before they impact critical infrastructure [2][5] - The unified platform, powered by AI-driven operations, delivers measurable efficiency gains and stronger protection across all connection points [2][3]

Core Points - Rosen Law Firm is reminding purchasers of Fortinet, Inc. common stock from November 8, 2024, to August 6, 2025, about the lead plaintiff deadline on November 21, 2025 [1] - Investors who purchased Fortinet stock during the specified period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2] Class Action Details - A class action lawsuit has been filed against Fortinet, and interested parties can join by submitting a form or contacting the law firm [3][7] - The lawsuit alleges that Fortinet made materially false and misleading statements regarding the business impact of a "record" round of FortiGate unit upgrades, claiming it would generate $400 million to $450 million in product revenue in 2025 and 2026 [5][6] Allegations Against Fortinet - The lawsuit claims that Fortinet misrepresented the potential of the refresh cycle, which consisted of older products that were a "small percentage" of the company's business [6] - It is alleged that Fortinet concealed the true number of FortiGate firewalls eligible for upgrades and misled investors about the momentum of the refresh cycle, which was pushed through rapidly in a short time frame [6]

Core Viewpoint - Fortinet, Inc. is facing a class action lawsuit alleging securities fraud due to misleading statements about the company's product upgrade cycle and revenue expectations [3][4]. Group 1: Lawsuit Details - The class action lawsuit is on behalf of investors who purchased Fortinet securities between November 8, 2024, and August 6, 2025 [3]. - Allegations include that Fortinet's management made materially false statements regarding a "record" round of FortiGate unit upgrades, claiming it would generate $400 million to $450 million in product revenue for 2025 and 2026 [3]. - The lawsuit asserts that the management misrepresented the upgrade cycle's potential, stating it would gain momentum in the second half of 2025, while in reality, it was not as lucrative as claimed [3]. Group 2: Financial Impact - On August 6, 2025, Fortinet reported that it was only "approximately 40% to 50% of the way through" the 2026 firewall upgrade cycle, which was below investor expectations [4]. - Following the release of weaker-than-expected revenue guidance for the third quarter, Fortinet's share price dropped by $21.28, or approximately 22%, from $96.58 to $75.30 [4]. Group 3: Investor Actions - Investors have until November 21, 2025, to request the Court to appoint them as lead plaintiff in the class action lawsuit [2]. - Interested investors are encouraged to contact Kirby McInerney LLP for more information regarding their rights or interests in the lawsuit [5].

Information, statements and projections contained in these presentation slides and related conference call concerning Fortinet's business outlook, the fourth quarter and full year 2025 guidance, and future prospects and expectations are forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial r ...

Core Viewpoint - Fortinet, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company misled investors regarding its product upgrade cycle and revenue expectations [1][3]. Company Overview - Fortinet is described as a leader in cybersecurity, providing a range of hardware and software products, with its flagship product being the FortiGate firewall [2]. Allegations of the Lawsuit - The lawsuit alleges that Fortinet failed to disclose critical information about the forced upgrade cycle of its FortiGate firewalls, including: - The number of units subject to the upgrade was smaller and included more low-end units than represented [3]. - The age and cost of certain devices in the upgrade cohort would not significantly impact current revenues [3]. - Fortinet lacked necessary data on end users to assess the impact of the end-of-service event in 2026 [3]. - The 2026 forced upgrade cycle had progressed significantly during the second half of 2024 and the first half of 2025 [3]. - Without customer upgrades, Fortinet's reported product sales would have been flat or negative [3]. - The 2026 forced upgrade cycle would not be a meaningful growth driver for the second half of 2025 and 2026 [3]. Impact of the Allegations - On August 6, 2025, Fortinet disclosed that the 2026 forced upgrade cycle was already 40%-50% complete as of June 30, 2025, contradicting prior investor expectations [4]. - Following this revelation, Fortinet's stock price fell by more than 22% [4]. Legal Process - Investors who purchased Fortinet common stock during the class period can seek appointment as lead plaintiff in the lawsuit, which allows them to act on behalf of other class members [6]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is representing the plaintiffs and has a strong track record in prosecuting investor class actions, having recovered over $2.5 billion for investors in 2024 alone [7][8].