Key Highlights

● Revenue was $2,047.9 million, up 26% year on year.

● Billings rose 33% to $2,372.1 million in the quarter.

● Fortinet now expects 2026 revenue of $8.02 billion to $8.18 billion.

● Product revenue rose 52% while service revenue grew 14%.

A stronger second quarter and a higher outlook

Fortinet, Inc. (NASDAQ:FTNT) reported second-quarter 2026 results on 29 July 2026 and raised its full-year guidance after billings and revenue both grew faster than in recent periods. Revenue was $2,047.9 million, up 26% year on year, and billings were $2,372.1 million, up 33%. The company now expects 2026 revenue of $8.02 billion to $8.18 billion and billings of $9.35 billion to $9.55 billion, ranges it raised with these results. Chief executive Ken Xie said he was very pleased with the quarter, and the results exceeded the high end of the company's own guidance on revenue and profitability.

Business and sector position

Fortinet supplies cybersecurity and networking products built around its FortiGate firewalls and its Security Fabric platform, together with subscription and support services. Its offering spans secure networking, secure access service edge (SASE), security operations and operational technology protection. The company competes with other network security vendors and cloud-delivered security specialists, and it sells through channel partners to enterprises, service providers and public bodies worldwide. Because customers pay for services over multiple years, deferred revenue acts as a gauge of future recognised service revenue.

What the latest report showed

The company reported product revenue of $773 million, up 52%, and service revenue of $1.27 billion, up 14%, according to the earnings call. Management said SASE firewall billings grew 34% to more than $2 billion, FortiSASE billings more than doubled, and operational technology billings rose more than 55%. Fortinet's own release put deferred revenue at $7,675.7 million at 30 June 2026, compared with $7,115.8 million at the end of 2025. Unified SASE billings rose 35%, secure networking billings rose 34% and AI-driven security operations billings rose 25%, indicating that growth was spread across the company's main product pillars rather than confined to one.

Financial performance and context

GAAP operating income was $689.3 million, a margin of 33.7%, and GAAP net income was $606.3 million, or $0.82 per diluted share. On a non-GAAP basis, operating margin was 38% and earnings per share were $0.90, per the earnings call. Operating cash flow was $1,043.6 million, and free cash flow was reported at $966 million. Fortinet repurchased 1.9 million shares for $146 million in the quarter, and about $766 million remained under its authorisation. Hardware refresh cycles and demand for network security are central to the sector backdrop. Adjusted free cash flow was $996 million, a 49% margin, according to the earnings call. Deferred revenue rose by $324.2 million during the quarter, supporting service revenue visibility in later periods.

Risks and uncertainties

Product revenue growth of 52% was far faster than service growth of 14%, so results depend on hardware demand that can be uneven from one quarter to the next. Third-quarter guidance points to billings of $2.25 billion to $2.35 billion, below the second-quarter level, and non-GAAP operating margin of 35% to 37%, below the 38% reported. Competition, supply conditions, tariffs and currency movements could affect results. Share repurchases reduce cash and are discretionary, so their pace may change. Weaker enterprise spending could also slow billings, which are a forward-looking indicator.

Benchmarks set by the raised ranges

For the third quarter, Fortinet guides to revenue of $2.01 billion to $2.10 billion and non-GAAP earnings per share of $0.83 to $0.87. Full-year non-GAAP earnings per share are expected at $3.41 to $3.47 with service revenue of $5.18 billion to $5.22 billion. Readers should watch the next quarterly report, the pace of FortiSASE adoption, deferred revenue growth as a guide to future service revenue, and the continuing share repurchase programme. Management's updated ranges also provide a benchmark against which later results can be judged.