10-QPeriod: Q2 FY2026

Fortinet, Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 30, 2026For Securities:FTNT

Summary

Fortinet, Inc. (FTNT) reported robust financial results for the second quarter and first half of 2026, demonstrating strong revenue growth and improved profitability. Total revenue for the quarter reached $2.05 billion, a 26% increase year-over-year, driven by a significant surge in product revenue (up 52%) alongside steady service revenue growth. This performance was sustained through the first half of the year with total revenue of $3.90 billion, a 23% increase. The company's operational efficiency is also notable, with operating income rising 51% year-over-year for the quarter to $689.3 million and operating margin expanding by 5.6 percentage points to 33.7%. This expansion in profitability, despite a slight decrease in gross margin due to a shift in revenue mix towards lower-margin products, highlights effective expense management and operating leverage. Fortinet continues to invest in its Security Fabric, SASE, and SecOps offerings, positioning itself for sustained growth in the cybersecurity landscape. The company also reported strong cash flow generation, reinforcing its financial health and strategic flexibility.

Key Highlights

  • 1Total revenue increased 26% year-over-year to $2.05 billion for the second quarter of 2026.
  • 2Product revenue saw substantial growth of 52% year-over-year, reaching $773.0 million, indicating strong hardware and software licensing demand.
  • 3Operating income grew by 51% year-over-year to $689.3 million, with operating margin expanding by 5.6 percentage points to 33.7%.
  • 4Deferred revenue increased to $7.68 billion, signaling strong future revenue potential from existing contracts.
  • 5Cash flow from operations remained robust, reaching $2.12 billion for the first six months of 2026, a 61% increase year-over-year.
  • 6The company repurchased $972.8 million of its common stock in the first half of 2026, demonstrating a commitment to returning capital to shareholders.
  • 7Significant investments in R&D and Sales & Marketing continue, indicating a focus on future innovation and market share expansion.

Frequently Asked Questions

Fortinet reported a 26% year-over-year increase in total revenue for the second quarter of 2026, reaching $2.05 billion. Product revenue grew significantly by 52% to $773.0 million, while service revenue increased by 14% to $1.27 billion.

Fortinet demonstrated strong profitability improvements. Operating income increased by 51% year-over-year to $689.3 million, and the operating margin expanded by 5.6 percentage points to 33.7%. This was driven by revenue growth outpacing operating expense growth.

Fortinet's deferred revenue balance grew to $7.68 billion as of June 30, 2026. This represents future revenue that has been invoiced but not yet recognized. A significant portion of this balance relates to security subscriptions and technical support services, indicating a strong pipeline of recurring revenue.

Fortinet generated $2.12 billion in cash from operating activities in the first six months of 2026, a substantial increase from the prior year. The company also repurchased $972.8 million of its common stock during the first half of the year, reflecting its strong liquidity and commitment to shareholder returns, while continuing to invest in its business and capital expenditures.