EarningsQ2 2026 Earnings Report
MX:FTNT Q2 2026 EPS Results
Actual EPS$15.30
Consensus EPS$12.68
Beat/MissBeat by +$2.62
One Year Ago EPS$10.88
MX:FTNT Q2 2026 Revenue Results
Actual Revenue$34.81B
Expected Revenue$32.10B
Beat/MissBeat by +$2.71B
YoY Revenue Growth+25.64%
Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:FTNT Upcoming Earnings
Fortinet's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:FTNT Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong, broad-based operational and financial momentum: double-digit growth across top-line metrics, a 52% jump in product revenue, record non-GAAP operating margin (38%), and exceptional free cash flow that supported increased guidance and continued buybacks. Management highlighted durable secular drivers (AI, sovereign SASE, OT security) and product differentiation (FortiOS, FortiASIC). Principal caveats were a still-lagging services growth rate, some uncertainty around how sustained ultra-high product growth will be into 2027, and modeling complexity from mixed metric definitions and price/headwind adjustments. On balance the positives — outsized product growth, margin expansion, cash generation, large customer wins and upgraded guidance — significantly outweigh the lowlights.Company Guidance
Billings and Revenue Acceleration
Total billings grew 33% year-over-year to $2.37 billion; total revenue increased 26% year-over-year to $2.05 billion, exceeding the high end of guidance for the quarter.
Product Revenue Surge
Product revenue rose 52% year-over-year to $773 million, driven by strong FortiGate unit growth and higher average selling prices as customers shifted to higher-performance models.
Exceptional Cash Generation
Free cash flow more than tripled year-over-year to $966 million; adjusted free cash flow was $996 million representing a very strong margin of 49%.
Outstanding Margin and EPS Performance
Non-GAAP gross margin was 80.9% (GAAP 80.2%); non-GAAP operating margin hit a record 38% (up 490 bps); non-GAAP EPS rose 41% to $0.90 and GAAP EPS rose 44% to $0.82.
SASE Firewall and FortiGate Strength
The Fortinet SASE Firewall business grew 34% to over $2 billion, FortiSASE billings grew by more than 100% (per management) and FortiGate showed the fastest product growth — management emphasized integrated FortiOS + FortiASIC advantages.
Strong Growth Across Strategic Pillars
Secure networking billings grew ~34%; AI-driven security operations billings grew 25%; OT billings increased over 55% (OT noted as >55% / ~56%), indicating broad-based demand across networking, SASE and security operations.
Large Customer Wins and Product Launches
Notable customer wins included an 8-figure hosted AI data center security deal, multiple 7-figure deals (including a global pharmaceutical 7-figure FortiSASE displacement covering 45,000 users and a large utility OT engagement). New product announcements include the FortiGate 1200G, FortiSOC and FortiSASE Outpost.
Improved Services Momentum and Deferred Revenue
Service revenue grew 14% to $1.27 billion with service billings growth of 26% and total deferred revenue up 17%; management stated they believe Q1 2026 marked the trough for service revenue growth and expect pickup in H2.
Capital Return and Balance Sheet Actions
Repurchased 1.9 million shares for $146 million in Q2 and 12.5 million shares for $973 million year-to-date; remaining buyback authorization approximately $766 million.
Raised Guidance
Management raised Q3 and full-year guidance: Q3 billings $2.25B–$2.35B (midpoint +27% YoY), revenue $2.01B–$2.10B (midpoint +19% YoY); full-year billings $9.35B–$9.55B (midpoint +25%), full-year revenue $8.02B–$8.18B (midpoint +19%), and full-year non-GAAP EPS $3.41–$3.47.
MX:FTNT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed