Fortinet (FTNT) AI Stock Analysis

Company Guidance

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.