Fortinet (FTNT) Q3 2026 Earnings Report
MX:FTNT Q3 2026 EPS Results
- Actual EPS
- MXN 17.10
- Consensus EPS
- MXN 16.16
- Beat/Miss
- Beat by +MXN 0.94
- One Year Ago EPS
- MXN 13.91
MX:FTNT Q3 2026 Revenue Results
- Actual Revenue
- MXN 39.06B
- Expected Revenue
- MXN 38.78B
- Beat/Miss
- Beat by +MXN 277.18M
- YoY Revenue Growth
- +20.49%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
Fortinet's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. Fortinet reported broad-based growth, record operating profitability, substantial free cash flow generation, strong demand across AI, SASE, OT and enterprise markets, and raised its 2026 guidance. The principal challenges were longer component lead times, higher product costs, and delayed service revenue recognition on large enterprise and expansion deals, but management characterized the underlying service demand as strong and expects improved growth rates in 2027.
For the fourth quarter, Fortinet expects billings in the range of $2.775 billion to $2.925 billion, which at the midpoint represents growth of 20%, revenue in the range of $2.155 billion to $2.245 billion, which at the midpoint represents growth of 15%, non-GAAP gross margin of 78% to 80%, non-GAAP operating margin of 35.5% to 37.5%, non-GAAP earnings per share of $0.93 to $0.95, which assumes a share count between 741 million and 745 million, infrastructure investments of $180 million to $210 million, a non-GAAP tax rate of 18% and cash taxes of $80 million to $130 million; for the full year, it expects billings in the range of $9.568 billion to $9.718 billion, which at the midpoint represents growth of 28%, revenue in the range of $8.125 billion to $8.215 billion, which at the midpoint represents growth of 20%, service revenue in the range of $5.15 billion to $5.17 billion, which at the midpoint represents growth of 13%, non-GAAP gross margin of 79.7% to 80.3%, non-GAAP operating margin of 36.5% to 37.5%, non-GAAP earnings per share of $3.54 to $3.58, which assumes a share count of between 741 million and 743 million, infrastructure investments of $390 million to $420 million, a non-GAAP tax rate of 18% and cash taxes of $400 million to $450 million; current 2026 fiscal year guidance represents an increase for billings and revenue guidance by $1.14 billion and $570 million, respectively, compared to the initial 2026 guide in February, and 2027 total billings and revenue growth is expected to outpace the growth of the overall addressable market, with 2027 service revenue expected to grow at a higher rate compared to 2026.
- Strong Third-Quarter Billings and Revenue GrowthThird-quarter total billings grew 29% to $2.34 billion, total revenue increased 20% to $2.08 billion, and product revenue grew 37% to $765 million, driven by broad-based demand and strong execution.
- Large Enterprise and Strategic Use-Case MomentumThe total value of deals greater than $1 million grew 51%, driven by an outsized contribution from the U.S. large enterprise business. AI, SASE, network upgrades and expansions were identified as key growth drivers.
- SASE Firewall and OT Billings GrowthSASE firewall billings grew 31%, while OT billings grew nearly 40%. Fortinet stated that it is the fastest-growing SASE firewall vendor at scale and is growing at nearly double the market growth rate.
- Growth in AI-Driven Security OperationsBillings from AI-driven security operations grew 15%, driven by strong upsell momentum as customers increasingly consolidate point solutions onto Fortinet's broader platform.
- Expansion of AI Security PortfolioFortinet launched FortiGuard Inline AI Security Services, positioning every FortiGate as a real-time AI enforcement point. The company also described FortiAIGate for GPU clusters and LLM infrastructure, AI security capabilities for endpoints, and FortiAgent for automated incident detection and response.
- Platform and SASE Architecture DifferentiationFortinet stated that it is the only industry vendor to build the key SASE firewall and AI security components into a single unified operating system, FortiOS. The company also offers on-premise sovereign SASE alongside cloud SASE and said this provides an addressable market 2 to 3x larger than cloud-only competitors.
- FortiLink SASE Launch and Installed-Base MonetizationThe newly launched FortiLink SASE services position FortiAP and FortiSwitch as SASE hardware agents, allowing customers to overlay FortiSASE on existing hardware and create recurring service revenue opportunities.
- Service Billings and Deferred Revenue IndicatorsService billings grew 26%, total deferred revenue increased 19%, and short-term deferred revenue rose 14.5%, its highest growth rate in 5 quarters. Management said these indicators support a continued positive trajectory for service revenue growth.
- Record Operating Margin and Earnings GrowthNon-GAAP operating margin was 38.2%, a third-quarter record and 130 basis points higher year over year. GAAP operating margin was 33.9%. Non-GAAP EPS increased 23% to $0.91, while GAAP EPS grew 39% to $0.86.
- Exceptional Free Cash Flow GenerationThird-quarter free cash flow grew 52% to $865 million, while year-to-date free cash flow increased 74% to $2.84 billion. Adjusted free cash flow was $912 million, representing a 44% margin.
- Expanded Share Repurchase AuthorizationThe Board approved an approximately $1.2 billion increase to the authorized stock repurchase program, bringing the remaining authorization to $2 billion while the company continues investing in its growth pillars.
- Raised Full-Year and Fourth-Quarter GuidanceFortinet raised its 2026 billings, revenue, operating margin and EPS guidance. Fourth-quarter billings are expected at $2.775 billion to $2.925 billion, representing 20% growth at the midpoint, and revenue is expected at $2.155 billion to $2.245 billion, representing 15% growth at the midpoint. Full-year billings guidance is $9.568 billion to $9.718 billion, representing 28% growth at the midpoint, and revenue guidance is $8.125 billion to $8.215 billion, representing 20% growth at the midpoint.
- Higher Full-Year Service Revenue OutlookFull-year 2026 service revenue is expected at $5.15 billion to $5.17 billion, representing 13% growth at the midpoint. The company expects 2027 service revenue growth to be higher than in 2026 as service billings and deferred revenue convert into recognized revenue.
- Significant Customer Wins in AI, OT and RetailAn AI company selected Fortinet for a 7-figure expansion across five additional data centers. A large transportation company selected Fortinet in an 8-figure competitive win for mission-critical OT infrastructure, and a large U.S. retailer selected Fortinet in an 8-figure deal covering 1,500 store locations.
- Continued Demand and 2027 Growth ConfidenceManagement said demand remained very strong in the third quarter and that it had not seen a slowdown. Fortinet expects 2027 total billings and revenue growth to outpace the growth of its overall addressable market and expects to continue gaining market share in the SASE firewall market, which management described as growing at 16%.
- Broadening OT and Enterprise Deployment OpportunitiesFortinet said its OT strength is expanding from certain geographies into other regions as customer references increase. Management also described growing demand for large-scale deployments in which customers work directly with Fortinet's services organization alongside partners and managed service providers.
MX:FTNT Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 09, 2027 | 2026 (Q4) | 17.63- | 15.22 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 16.1617.10 | 13.91 | 22.97% (+3.19) | |
| Jul 29, 2026 | 2026 (Q2) | 14.0216.91 | 12.03 | 40.63% (+4.89) | |
| May 06, 2026 | 2026 (Q1) | 11.6315.41 | 10.9 | 41.38% (+4.51) | |
| Feb 05, 2026 | 2025 (Q4) | 13.9615.22 | 13.91 | 9.46% (+1.32) | |
| Nov 05, 2025 | 2025 (Q3) | 11.8613.91 | 11.84 | 17.46% (+2.07) | |
| Aug 06, 2025 | 2025 (Q2) | 11.0912.03 | 10.71 | 12.28% (+1.32) | |
| May 07, 2025 | 2025 (Q1) | 9.9810.90 | 8.08 | 34.88% (+2.82) | |
| Feb 06, 2025 | 2024 (Q4) | 11.3913.91 | 9.58 | 45.10% (+4.32) | |
| Nov 07, 2024 | 2024 (Q3) | 9.7311.84 | 7.7 | 53.66% (+4.13) |
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.
