Fortinet, Inc.FTNT
Fortinet, Inc. Financial Overview 2020–2024
By the close of FY2024, Fortinet's service revenue expanded to command 68% of the top line, pushing gross margins to 80.6%. This structural shift underlines a clear investment reality: the company has successfully evolved from a hardware-reliant firewall provider into a highly profitable, recurring-revenue cybersecurity platform.
The financial trajectory demonstrates relentless scale, as total revenue more than doubled from $2.59 billion in FY2020 to $5.96 billion in FY2024. Even as hardware-driven product revenue flattened in FY2024, the service segment surged 20% to $4.05 billion, propelling the operating margin to 30.3%. This operational leverage cascaded directly to the bottom line, with earnings per share multiplying from $0.58 on 0.81 billion shares at the end of FY2020 to $2.26 on a reduced share count of 0.77 billion shares at the close of FY2024. Momentum accelerated further into Q3 2025, where total revenue climbed 14% year-over-year to $1.72 billion and the operating margin stretched to 31.7%. Supported by this continued growth, the company aggressively returns capital to shareholders, executing $2.23 billion in stock repurchases over the first nine months of FY2025 fueled by $1.97 billion in operating cash flow.
Recent Developments (Q2 and Q3 2025)
In Q3 2025, product sales reaccelerated with an 18% year-over-year expansion, outpacing the 13% growth in service revenue. Operating income rose 16% for the quarter, building on the $458.0 million generated in Q2 2025. Geographic performance remained strong, highlighted by an 18% year-over-year revenue increase in the EMEA region during Q2 2025. On August 21, 2025, the board authorized a $1 billion increase to the share repurchase program, extending it to February 28, 2027, and lifting total authorization to $9.25 billion. Fortinet maintained a highly liquid balance sheet, holding $4.67 billion in cash and investments at the end of Q2 2025. Bulls point to the parallel growth in product and service segments as proof of durable, integrated platform demand. Bears caution that trading at 36.2x earnings as of November 6, 2025 leaves little margin for error if broader enterprise IT spending slows down.
What to watch: hardware demand sustainability following the recent product sales spike; execution of the expanded buyback authorization.
Rev
$5.96B
FY2024
NI
$1.75B
FY2024
EPS
$2.28
FY2024
OCF
$2.26B
FY2024
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
Fortinet, Inc. 8-K Report, Financial Results (Feb 5, 2026)
Fortinet, Inc. (FTNT) has filed an 8-K on February 5, 2026, to report its financial results for the fourth quarter and full year ended December 31, 2025. The filing primarily consists of a press release, furnished as Exhibit 99.1, which contains the company's operational and financial performance details. Investors should refer to this press release for specific figures related to revenue, profitability, and other key financial metrics for the period. The company also notes that this information is furnished and not deemed "filed" under Section 18 of the Exchange Act, meaning it's not automatically incorporated into prior or future SEC filings unless explicitly stated. The filing also includes the Interactive Data File in iXBRL format for the cover page.
Fortinet, Inc. 8-K Report, Financial Results (Nov 5, 2025)
Fortinet, Inc. (FTNT) filed an 8-K on November 4, 2025, to report its third quarter financial results for the period ended September 30, 2025. The key information is contained within the press release furnished as Exhibit 99.1, which details the company's performance for the quarter. Investors should refer to this press release for specific financial metrics and operational updates. This filing serves as a notification of the results release, with the actual financial data and management commentary provided in the accompanying press release. While this 8-K itself does not contain detailed financial tables, it is the official channel through which Fortinet discloses its quarterly earnings to the public. The information is not deemed 'filed' under Section 18 of the Exchange Act unless specifically incorporated by reference into another filing, which is a standard disclaimer for such 8-K filings.
Fortinet, Inc. 8-K Report, Corporate Update (Aug 22, 2025)
Fortinet, Inc. (FTNT) has announced a significant expansion and extension of its share repurchase program, signaling a strong commitment to returning capital to shareholders and confidence in its stock valuation. The Board of Directors authorized an additional $1 billion for share buybacks, increasing the total authorized amount to $9.25 billion. Furthermore, the program's expiration date has been extended by one year, from February 28, 2026, to February 28, 2027. This move indicates that management believes Fortinet's stock may be undervalued, or that they view repurchases as an attractive use of cash compared to other potential investments. Investors can interpret this as a positive signal regarding the company's future prospects and its ability to generate free cash flow. The increased authorization and extended timeline provide flexibility for Fortinet to continue repurchasing shares opportunistically over the next approximately 18 months.
Fortinet, Inc. 8-K Report, Financial Results (Aug 6, 2025)
Fortinet, Inc. (FTNT) filed an 8-K on August 6, 2025, primarily to furnish a press release detailing its financial results for the second quarter ended June 30, 2025. While the filing itself does not contain detailed financial figures, it directs investors to the accompanying press release (Exhibit 99.1) for these crucial operational and financial condition updates. Investors should refer to the furnished press release for specifics on revenue, profitability, deferred revenue, bookings, and any forward-looking guidance provided by the company.
Fortinet, Inc. 8-K Report, Shareholder Vote Results (Jun 18, 2025)
Fortinet, Inc. (FTNT) filed an 8-K on June 17, 2025, detailing the outcomes of its Annual Meeting of Stockholders held on June 13, 2025. The report indicates strong shareholder support for the company's leadership and strategic direction, with all incumbent directors being re-elected to the Board. Furthermore, shareholders ratified the appointment of Deloitte & Touche LLP as the independent registered accounting firm for fiscal year 2025, signaling confidence in the company's financial oversight. While the majority of proposals received overwhelming approval, a notable outcome was the rejection of a specific stockholder proposal seeking to separate the roles of Chairman of the Board and Chief Executive Officer. This suggests that current shareholders are largely comfortable with the existing governance structure, preferring the company's current leadership composition. The strong turnout, with approximately 87.04% of outstanding shares represented, underscores active shareholder engagement.
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