Fortinet reports strong fourth quarter and full year 2025 financial results

Fourth quarter 2025 highlights

• Revenue grew 15 per cent year over year to $1.91 billion
• Product revenue grew 20 per cent year over year to $691 million
• Billings grew 18 per cent to $2.37 billion¹
• Unified SASE billings grew 40 per cent
• GAAP operating margin of 33 per cent
• Non-GAAP operating margin of 37 per cent¹

Full year 2025 highlights

• Revenue grew 14 per cent year over year to $6.80 billion
• Product revenue grew 16 per cent year over year to $2.22 billion
• Billings grew 16 per cent to $7.55 billion¹
• Unified SASE & SecOps billings grew 24 per cent
• GAAP operating margin of 31 per cent
• Non-GAAP operating margin of 35 per cent¹
• Free cash flow of $2.21 billion¹
• Exceeded the ‘Rule of 45’ for the sixth consecutive year²

February 6, 2026–Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, has announced financial results for the fourth quarter of 2025 and full year ended December 31, 2025.

Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet, said, “We are pleased with our strong finish to the year, highlighted by an excellent fourth quarter driven by broad-based demand across our portfolio, which drove billings above the high end of our guidance.

“We continue to execute our strategy by accelerating our investments in high-growth Unified SASE and Security Operations markets, delivering strong momentum while further strengthening our Secure Networking leadership. As the number one firewall leader with a 55 per cent unit market share, Fortinet is well-positioned to extend that leadership into SASE, driven by our rapidly expanding SASE adoption and growing customer demand. Our easy-to-adopt FortiSASE solution, powered by our single FortiOS operating system, supports both sovereign and public deployments, delivering high performance with significantly lower total cost of ownership than the competition.”

Recent business highlights

• Announced an integrated solution with NVIDIA that delivers isolated infrastructure acceleration for the AI Factory, embedding FortiGate VM on BlueField-3 DPUs to provide firewalling, segmentation and policy enforcement directly in the infrastructure for higher performance, stronger isolation and simpler operations.
• Recognised as a Gartner Peer Insights™ Customers’ Choice for Security Service Edge for the third consecutive year, making Fortinet the only cybersecurity vendor to receive this distinction.
• Named the inaugural Google Unified Security Recommended partner for network protection, recognizing FortiSASE and FortiGate NGFW for delivering converged networking and security natively on Google Cloud.
• Won the 2025 Red Dot Product Design Award for the FortiGate Rugged series, Fortinet’s second consecutive win, recognising design excellence, reliability and performance at the industrial edge.

Fortinet expands share repurchase authorisation by $1.0 billion

Fortinet announced that its Board of Directors has authorised an increase of its share repurchase program by $1.0 billion worth of shares of common stock, for an aggregate authorised repurchase amount of up to $10.25 billion through February 28, 2027. As of February 4, 2026 approximately $1.38 billion remained available under the share repurchase program, including the $1.0 billion increase. Repurchases under Fortinet’s share repurchase program may be made through privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Fortinet’s share repurchase program does not obligate Fortinet to acquire any particular amount of its common stock, and it may be suspended at any time at Fortinet’s discretion. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

Guidance
For the first quarter of 2026, Fortinet currently expects:

• Revenue in the range of $1.700 billion to $1.760 billion
• Billings in the range of $1.770 billion to $1.870 billion
• Non-GAAP gross margin in the range of 80.0 per cent to 81.0 per cent
• Non-GAAP operating margin in the range of 30.0 per cent to 32.0 per cent
• Diluted non-GAAP net income per share in the range of $0.59 to $0.63, assuming a non-GAAP effective tax rate of 18 per cent. This assumes a diluted share count of 746 million to 750 million.

For the fiscal year 2026, Fortinet currently expects:

• Revenue in the range of $7.500 billion to $7.700 billion
• Service revenue in the range of $5.050 billion to $5.150 billion
• Billings in the range of $8.400 billion to $8.600 billion
• Non-GAAP gross margin in the range of 79.0 per cent to 81.0 per cent
• Non-GAAP operating margin in the range of 33.0 per cent to 36.0 per cent
• Diluted non-GAAP net income per share in the range of $2.94 to $3.00, assuming a non-GAAP effective tax rate of 18 per cent. This assumes a diluted share count of 747 million to 753 million.

These statements are forward looking and actual results may differ materially.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortisation of acquired intangible assets, gain on intellectual property matters and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

¹ A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in the press release. An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures”.
² Fortinet defines the Rule of 45 as GAAP revenue year over year growth plus non-GAAP operating margin.

About Fortinet 
Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with  esteemed organisations from both the public and private sectors, including Computer Emergency Response Teams (“CERTS”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organisation, develops and utilises leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs.