Fortinet, Inc.

Fortinet reported second-quarter 2026 billings of $2.37 billion, up 33% year over year, and total revenue of $2.05 billion, up 26%. Product revenue increased 52% to $773 million, service revenue rose 14% to $1.27 billion, non-GAAP gross margin was 80.9%, and non-GAAP EPS was $0.90, up 41%; GAAP EPS was $0.82, up 44%. Free cash flow more than tripled to $966 million, and adjusted free cash flow was $996 million, or a 49% margin. For Q3, management guided billings to $2.25 billion-$2.35 billion, revenue to $2.01 billion-$2.1 billion, non-GAAP EPS to $0.83-$0.87, and non-GAAP operating margin to 35%-37%. For full-year 2026, it raised guidance to billings of $9.35 billion-$9.55 billion, revenue of $8.02 billion-$8.18 billion, service revenue of $5.18 billion-$5.22 billion, and non-GAAP EPS of $3.41-$3.47.

Ken Xie framed the quarter as evidence that Fortinet’s differentiated platform is gaining share in a market being reshaped by AI, sovereign SASE, and OT security. He emphasized the company’s in-house development of FortiOS, FortiASIC, and global infrastructure, arguing these advantages make the new “SASE Firewall” a long-term growth opportunity with a larger addressable market than cloud-only SASE. His tone was confident and expansionary, repeatedly pointing to long-term durability rather than a short-term pull-forward.

Christiane Ohlgart said the company beat the high end of guidance on billings, revenue, operating margin, and EPS. She highlighted billings of $2.37 billion, revenue of $2.05 billion, non-GAAP gross margin of 80.9%, non-GAAP operating margin of 38%, and free cash flow of $966 million, while also noting $146 million of share repurchases in the quarter and $973 million year to date. On guidance, she raised the full-year outlook and said service revenue growth should improve in the second half, with billings and revenue guided higher alongside margin and EPS.

Analysts focused on what is driving the acceleration, how durable it is, and whether price increases are affecting second-half growth. Management said the strength is not just a pricing or supply effect; instead, they cited AI-driven traffic growth, product mix, SASE Firewall adoption, OT demand, and customer migration toward integrated platforms. On pricing, Christiane said the second-half billings assumptions include approximately a high single-digit impact, while Ken said the company adjusts prices in real time to preserve gross margin and sees no incentive for customers to over-inventory. On services, Christiane said growth is coming from both attached services and SecOps, while Ken pointed to bundled SD-WAN/SASE services as an additional driver.