TLDR
- Fortinet stock jumps 11% after hours as second-quarter growth beats expectations
- Product revenue increased 52% as demand strengthened across security platforms globally
- Quarterly revenue rose 26% to $2.05 billion on strong product sales momentum
- Billings rose 33% to $2.37 billion as customer security spending accelerated
- Fortinet maintains company guidance for 2026 with projected annual revenue of more than $8.02 billion
Fortinet (FTNT) stock rose 2.16% to close at $153.22, then rose 11.00% after hours to $170.08. The move follows strong growth in the second quarter across revenue, product sales, billings, profits and cash generation. Demand for integrated cybersecurity platforms has strengthened as organizations expand spending on network, cloud, endpoint and security operations.
Fortinet’s revenues and profits accelerate
Fortnite It reported second-quarter revenue of $2.05 billion, representing 26% growth from the previous year. Product revenue increased 52% to $773 million, reflecting strong demand for integrated security devices and systems. Meanwhile, billings rose 33% to $2.37 billion, demonstrating continued customer spending and contract activity.
The company reported a 34% GAAP operating margin and a 38% non-GAAP operating margin. GAAP earnings per share increased 44% to $0.82, while adjusted earnings increased 41% to $0.90. Therefore, Fortinet turned faster sales growth into stronger profitability during the quarter.
Operating cash flow was $1.04 billion, while total free cash flow was $966 million. These results gave Fortinet additional ability to fund development, partnerships, and product expansion. Meanwhile, Fortinet stock’s sharp after-hours rise following the earnings announcement was supported by cash performance.
Cybersecurity products expand Fortinet’s market reach
Fortinet expanded its platform during the quarter with new products for firewall, endpoint and security operations. The FortiGate 1200G Series combines on-premises implementation and cloud-delivered security for hybrid infrastructure and sovereignty requirements. In addition, FortiSOC has consolidated six security operations functions into a single platform available in the cloud.
FortiEndpoint has also integrated several endpoint security tools into a single agent to make risk management easier. The product is aimed at teams managing data protection, device security, and broader technology adoption. Together, these launches have strengthened Fortinet’s position across networking, endpoint protection and security operations.
Fortnite It also began a strategic cooperation with Intel to develop the 6th generation security processor. The agreement combines Fortinet’s processor know-how with Intel’s design, packaging, development and manufacturing capabilities. Thus, Fortinet expects faster processor development and a more resilient global supply chain.
Fortinet’s guidance supports continued growth
For the third quarter, Fortinet expects revenue between $2.01 billion and $2.10 billion. The company expects billings of between $2.25 billion and $2.35 billion during the same period. It also expects adjusted earnings of between $0.83 and $0.87 per diluted share.
Fortnite It expects third-quarter non-GAAP gross margin of between 79% and 81%. It also expected a non-GAAP operating margin between 35% and 37%. These ranges indicate that management expects profitability to remain high as revenues and billings continue to grow.
For 2026, Fortinet expects revenue between $8.02 billion and $8.18 billion. The company expects annual billings of between $9.35 billion and $9.55 billion. It expected adjusted earnings of between $3.41 and $3.47 per share, along with services revenue of more than $5.18 billion.
