01—Abstract
Summary
Summary of the 10-K filed February 25, 2026. Cited figures are marked; the original filing is the authoritative source.
Fortinet, Inc. reported strong financial performance for the fiscal year ended December 31, 2025, with total revenue reaching $6.80 billiona, a 14% increase year-over-year.
The company's integrated cybersecurity platform, the Fortinet Security Fabric, continues to drive growth across its Secure Networking, Unified SASE, and AI-Driven Security Operations pillars. This growth was fueled by robust demand for both hardware and subscription services, with service revenue, particularly security subscriptions, showing a healthy 13%b increase. Fortinet also demonstrated improved operating leverage, with operating income up 16% and operating margin reaching 30.7%.
The company continued its commitment to innovation, with significant investment in AI-related patents and offerings. Looking ahead, Fortinet anticipates continued revenue growth in 2026, supported by strategic investments in sales and marketing and product development.
While acknowledging potential headwinds from macroeconomic factors and ongoing supply chain considerations, the company remains focused on expanding its market presence and delivering comprehensive cybersecurity solutions. Fortinet's solid financial footing, evidenced by strong cash flow from operations and a substantial cash balance, positions it well to navigate industry challenges and pursue its growth strategy.
02—Key points
Key Highlights
- Fortinet reported total revenue of $6.80 billion for fiscal year 2025, a 14% increase year-over-year.
- Product revenue grew by 16% to $2.22 billion, while service revenue increased by 13% to $4.58 billion.
- Operating income rose by 16% to $2.08 billion, with an operating margin of 30.7%.
- The company holds 1,405 global patents, including 321 AI-related patents, underscoring its commitment to innovation.
- Fortinet's Security Fabric platform, encompassing Secure Networking, Unified SASE, and AI-Driven Security Operations, continues to be a key growth driver.
- Cash flow from operating activities increased by 15% to $2.59 billion.
- The company repurchased $2.29 billion of its common stock in 2025 under its Share Repurchase Program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Fortinet, Inc. kept $0.27.
- Revenue$6.80B100.0%
- Cost of revenue−$1.33B19.5%
- Gross profit$5.47B80.5%
- Operating costs−$3.39B49.8%
- Operating income$2.08B30.7%
- Interest, other & tax−$231.3M3.4%
- Net income$1.85B27.3%
Where FY2025 revenue went
$6.80B- Other operating costs: $2.57B, 38% of revenue
- Net income: $1.85B, 27% of revenue
- Cost of revenue: $1.33B, 20% of revenue
- R&D: $815.5M, 12% of revenue
- Interest, other & tax: $231.3M, 3.4% of revenue
Kept 27% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 25, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $6.80B$5.96B | +14.2% |
| Cost of Revenue | $1.33B$1.16B | +14.8% |
| Gross Profit | $5.47B$4.80B | +14.0% |
| R&D Expenses | $815.50M$716.80M | +13.8% |
| Operating Expenses | $3.39B$2.99B | +13.1% |
| Operating Income | $2.08B$1.80B | +15.6% |
| Interest Expense | $20.10M$20.00M | +0.5% |
| Net Income | $1.85B$1.75B | +6.2% |
| EPS (Basic) | $2.45$2.28 | +7.5% |
| EPS (Diluted) | $2.42$2.26 | +7.1% |
| Shares Outstanding (Basic) | 758.00M764.40M | −0.8% |
| Shares Outstanding (Diluted) | 764.60M771.90M | −0.9% |
05—Questions
Frequently Asked Questions
What were Fortinet's key financial results for the fiscal year ended December 31, 2025?
Fortinet achieved total revenue of $6.80 billion, a 14% increase from the prior year. Product revenue grew 16% to $2.22 billion, and service revenue increased 13% to $4.58 billion. Operating income rose 16% to $2.08 billion, resulting in an operating margin of 30.7%.
How is Fortinet addressing the growing demand for AI in cybersecurity?
Fortinet is heavily investing in AI technologies, evidenced by its 321 AI-related patents. Its FortiAI offering provides a dual-layered defense strategy with 'AI for Security' and 'Security for AI' frameworks, aiming to assist security operations teams, protect against AI-driven threats, and secure AI infrastructure, including LLMs and APIs.
What is Fortinet's strategy for future growth, and what are the main growth drivers?
Fortinet's growth strategy is centered on its integrated Fortinet Security Fabric, which converges networking and security. Key drivers include the expansion of its Secure Networking, Unified SASE, and AI-Driven Security Operations portfolios. The company is also investing in sales and marketing and product development to capture market share and anticipates continued growth in both product and service revenues.
What is Fortinet's approach to capital allocation and shareholder returns?
Fortinet has a significant share repurchase program, having repurchased $2.29 billion of its common stock in 2025. The company also maintains a strong cash position and generates substantial operating cash flow, providing flexibility for strategic investments, potential acquisitions, and continued shareholder returns through buybacks. Fortinet does not currently pay dividends.
06—Continue