Fortinet (NASDAQ:FTNT) Issues Earnings Results, Beats Expectations By $0.15 EPS

Fortinet (NASDAQ:FTNT) posted its earnings results on Wednesday. The software maker reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.75 by $0.15, FiscalAI reports. The firm had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $1.89 billion. Fortinet had a net margin of 27.49% and a return on equity of 160.08%. The firm’s revenue for the quarter was up 25.6% on a year-over-year basis. During the same period last year, the firm posted $0.64 EPS. Fortinet updated its FY 2026 guidance to 3.410-3.470 EPS and its Q3 2026 guidance to 0.830-0.870 EPS.

Here are the key takeaways from Fortinet’s conference call:

• Strong second-quarter performance: Billings increased 33% to $2.37 billion, revenue rose 26% to $2.05 billion, and product revenue surged 52%. Free cash flow more than tripled year over year to $966 million.
• Broad-based demand across strategic pillars: Secure Networking billings grew 34%, Unified SASE grew 35% with FortiSASE billings more than doubling, and AI-driven Security Operations billings increased 25%. OT billings also rose more than 55%, supported by demand from critical infrastructure and industrial customers.
• Raised full-year outlook: Fortinet increased its 2026 guidance for billings to $9.35 billion-$9.55 billion, revenue to $8.02 billion-$8.18 billion, service revenue to $5.18 billion-$5.22 billion, and non-GAAP EPS to $3.41-$3.47.
• Exceptional profitability and capital returns: Non-GAAP operating margin reached a second-quarter record of 38%, while non-GAAP EPS rose 41% to $0.90. The company repurchased $973 million of stock year to date and had approximately $766 million remaining under its authorization.
• Management is positioning its integrated “SASE firewall” as a long-term growth opportunity: Fortinet argues that combining firewall, SASE, SD-WAN, and sovereign/on-premises capabilities on FortiOS can address AI, data privacy, and high-throughput security needs. Executives described the opportunity as potentially larger than cloud-only SASE, though adoption and future growth remain dependent on customer and service-provider investment.

Fortinet Trading Up 2.2%

FTNT traded up $3.24 during trading on Wednesday, hitting $153.22. The company’s stock had a trading volume of 12,317,816 shares, compared to its average volume of 6,415,523. Fortinet has a twelve month low of $70.12 and a twelve month high of $170.35. The stock has a market cap of $112.26 billion, a PE ratio of 59.16, a PEG ratio of 4.14 and a beta of 1.09. The firm’s 50 day moving average price is $148.98 and its 200-day moving average price is $107.66. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.15 and a quick ratio of 1.07.

Insider Transactions at Fortinet

In other Fortinet news, COO John Whittle sold 146,015 shares of the firm’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $128.41, for a total value of $18,749,786.15. Following the sale, the chief operating officer directly owned 94,724 shares of the company’s stock, valued at approximately $12,163,508.84. This trade represents a 60.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Michael Xie sold 3,907 shares of Fortinet stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $146.44, for a total value of $572,141.08. Following the completion of the sale, the vice president owned 9,923,610 shares of the company’s stock, valued at $1,453,213,448.40. This trade represents a 0.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 318,387 shares of company stock worth $43,403,063 over the last quarter. 17.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Bison Wealth LLC acquired a new position in Fortinet during the fourth quarter worth approximately $585,000. Brighton Jones LLC raised its stake in Fortinet by 2.2% during the fourth quarter. Brighton Jones LLC now owns 10,327 shares of the software maker’s stock worth $976,000 after purchasing an additional 221 shares during the period. MUFG Securities EMEA plc acquired a new position in shares of Fortinet in the 2nd quarter valued at $198,000. Keystone Financial Group acquired a new position in shares of Fortinet in the 3rd quarter valued at $165,000. Finally, Aster Capital Management DIFC Ltd grew its stake in shares of Fortinet by 5,512.9% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,740 shares of the software maker’s stock valued at $138,000 after buying an additional 1,709 shares during the period. 83.71% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Q2 results surpassed estimates. Fortinet reported $2.05 billion in revenue, up 26% year over year and above the $1.89 billion consensus estimate. Adjusted EPS was $0.90 versus expectations of $0.75, while GAAP diluted EPS rose to $0.82 from $0.57 a year earlier. Fortinet Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Product momentum accelerated. Product revenue jumped 52% to $773 million, billings increased 33% to $2.37 billion, and the company generated $1.04 billion in operating cash flow and $966 million in free cash flow. Management cited strong enterprise demand amid rising cybersecurity threats. Fortinet lifts annual revenue forecast on strong cybersecurity demand
• Positive Sentiment: Fortinet raised its 2026 outlook. Full-year revenue guidance increased to $8.02 billion-$8.18 billion, compared with the prior outlook of approximately $8.0 billion-$8.2 billion as reported in the company’s updated guidance, and the company projected adjusted EPS of $3.41-$3.47 versus the $3.08 analyst consensus. Third-quarter revenue guidance of $2.01 billion-$2.10 billion and EPS guidance of $0.83-$0.87 also exceeded consensus estimates. Fortinet Reports Strong Second Quarter 2026 Financial Results
• Neutral Sentiment: Fortinet also expanded its FortiGate G Series with the 1200G and FortiSASE Outpost, supporting its strategy of combining networking, firewall and cloud-delivered security services. Fortinet Expands FortiGate G Series
• Negative Sentiment: Valuation remains a risk after the strong rally: Fortinet trades at a high earnings multiple, and Wells Fargo maintained a Sell rating. In addition, reported insider activity showed executives selling shares without recorded purchases in the past six months, which may temper bullish sentiment.

Analyst Ratings Changes

Several research firms have recently commented on FTNT. Mizuho set a $125.00 price target on shares of Fortinet and gave the company an “underperform” rating in a research report on Wednesday, July 15th. JPMorgan Chase & Co. increased their target price on Fortinet from $73.00 to $75.00 and gave the company an “underweight” rating in a report on Thursday, May 7th. BTIG Research boosted their price target on Fortinet from $150.00 to $186.00 and gave the stock a “buy” rating in a report on Friday, July 10th. HSBC downgraded Fortinet from a “hold” rating to a “reduce” rating and set a $102.00 price objective on the stock. in a research report on Monday, June 29th. Finally, UBS Group lifted their price objective on Fortinet from $90.00 to $115.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty-four have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, Fortinet presently has a consensus rating of “Hold” and a consensus price target of $123.61.

Fortinet Company Profile

Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.

Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.