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Companies · FTNT

FTNT Reported this cycle

Fortinet

Sunnyvale, CA Founded 2000 Cybersecurity

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Latest analysis

Updated Jul 30, 2026

Fortinet Q2 2026: Revenue Accelerates to 26% Growth on 52% Product Surge Driven by AI Infrastructure Demand and Pricing Actions

Fortinet posted its strongest revenue growth in several quarters, with Q2 2026 total revenue of $2.05 billion (up 26% year-over-year) driven by a 52% surge in product revenue — the primary engine being AI infrastructure deployments, hardware refresh cycles, and deliberate pricing actions. Billings growth of 33% to $2.37 billion and free cash flow expansion to $966 million signal demand well ahead of near-term revenue recognition, while operating margin expanded 5.6 percentage points to 33.7%, demonstrating significant operating leverage. The central risk materializing this cycle is a global memory chip shortage triggered by AI infrastructure buildout, which Fortinet explicitly names as constraining production capacity and driving cost increases it is attempting to offset through product price increases.

Tone: bullish

Revenue

$6.8B

FTNT 10-K · FY 2025

Employees

15,109

Revenue FY2024

$6B

Founded

2000

Profile

FTNT 10-K Item 1 · Feb 25, 2026

Fortinet is a cybersecurity platform company that converges networking and security across secure networking, unified SASE, and AI-driven security operations. Its integrated Fortinet Security Fabric spans over 50 products and serves enterprise, government, and service provider customers in over 100 countries. The company differentiates through proprietary ASIC technology, a unified operating system (FortiOS), and organically built cloud infrastructure.

Read filing description ↓

Fortinet is a leader in cybersecurity, driving the convergence of networking and security. Our mission is to secure people, devices and data everywhere. Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge ('SASE') and artificial intelligence ('AI')-driven security operations ('SecOps'). As of December 31, 2025, our end-customers were located in over 100 countries and included enterprises across a wide variety of market verticals, including financial services, retail, healthcare and operational technology ('OT') market verticals, communication and security service providers, and government organizations. As a global company headquartered in Sunnyvale, California, our research and development is centered in the United States and Canada with a global footprint of support and centers of excellence around the world. Our competitive differentiation lies in our core technologies, which together provide performance, security, flexibility and integration across diverse environments. These competitive differentiators provide networking and security professionals with a cyber security platform comprised of over 50 products across three solution pillars: Secure Networking, Unified SASE, and AI-Driven Security Operations. A platform approach -- what we call the Fortinet Security Fabric -- has emerged to address these challenges and support enterprises in reducing complexity and improving risk mitigation. As organizations continue to modernize their cybersecurity infrastructure, we anticipate a significant firewall refresh and upgrade cycle in the coming years.

Primary products

  • FortiOS
  • FortiASIC
  • FortiCloud
  • FortiAI
  • FortiEndpoint
  • OT Security Platform

Business segments

Secure Networking Unified Secure Access Service Edge (SASE) AI-Driven Security Operations (SecOps)

End markets

Financial services Retail Healthcare Operational technology (OT) Communication and security service providers Government organizations Manufacturing Technology Education Telecommunications

Geographies

United States Canada EMEA Asia Pacific (APAC)

Named customers

Amazon Web Services Microsoft Azure Google Cloud Arrow Electronics, Inc. Exclusive Ingram Micro TD Synnex

Refer to Note 15. Segment Information in Part II, Item 8 of this Annual Report on Form 10-K for distributor customers accounted for 10% or more of our revenue or net accounts receivable.

Named competitors

Check Point Software Technologies Ltd. Cisco Systems, Inc. CrowdStrike Holdings, Inc. F5 Networks, Inc. Hewlett-Packard Enterprise Huawei Technologies Co., Ltd. Microsoft Corporation Netskope Inc.
“We believe we compete favorably based on our products' security performance, throughput, reliability, breadth and ability to work together, our ability to add and integrate new networking and security features and our technological expertise.” Competitive position, as stated in the filing

Revenue commentary · FY 2025

Total revenue grew from $5,955.8 million in 2024 to $6,799.6 million in 2025, driven by growth in both product and service revenue.

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Analysis, signals, diligence answers, M&A activity and every quote, each citing the filing it came from.

SeventhBiz analysis 6 signals 9 diligence answers 2 M&A transactions SWOT