Fortinet lifts full-year revenue guidance after strong Q2

Fortinet reported second-quarter revenue of USD $2.05 billion and raised its full-year revenue guidance.

Revenue rose 26 per cent from a year earlier, while billings increased 33 per cent to USD $2.37 billion. Product revenue climbed 52 per cent to USD $773 million, according to the quarterly figures.

Fortinet exceeded the upper end of its own guidance for both revenue and profitability in the quarter. GAAP operating margin was 34 per cent, while non-GAAP operating margin was 38 per cent.

GAAP earnings per share increased 44 per cent year on year to $0.82, while non-GAAP earnings per share rose 41 per cent to $0.90. Operating cash flow reached USD $1.04 billion and free cash flow totalled USD $966 million.

The results point to continued demand for Fortinet's mix of network security products and services as corporate customers review how they protect data, users and infrastructure. Full-year service revenue guidance was set at between USD $5.180 billion and USD $5.220 billion.

For the current quarter, Fortinet expects revenue of USD $2.010 billion to USD $2.100 billion. It forecast billings of USD $2.250 billion to USD $2.350 billion, with diluted non-GAAP net income per share expected at USD $0.83 to USD $0.87.

Fortinet also lifted its full-year outlook. It now expects revenue of USD $8.020 billion to USD $8.180 billion and billings of USD $9.350 billion to USD $9.550 billion.

Product push

Alongside the financial results, Fortinet highlighted a series of product and partnership announcements that show where it is investing. These included a strategic collaboration with Intel to develop its Fortinet Security Processor 6, known as SP6.

The arrangement combines Fortinet's chip design work with Intel's design, development, packaging and manufacturing operations. The collaboration is intended to support SP6 development and broaden the resilience and diversity of Fortinet's global supply chain.

Fortinet also launched the FortiGate 1200G series with FortiSASE Outpost, which brings together local enforcement and cloud-delivered security. It described the move as part of its push into what it calls the "SASE Firewall" market, linking firewall and secure access service edge technologies for hybrid IT environments.

Another launch was FortiSOC, a cloud-delivered security operations centre platform that combines six security operations functions in one system. Fortinet also expanded FortiEndpoint, folding several endpoint security tools into a single agent.

AI links

Fortinet has also been widening its relationships with artificial intelligence groups. It said it had partnered with Anthropic on Project Glasswing (Mythos), OpenAI on Project Daybreak (GPT 5.5 Cyber), and joined NVIDIA's Open Secure AI Alliance for AI Safety and Security as a founding member.

These steps underline how large cybersecurity vendors are positioning themselves around AI-related threats, governance and infrastructure demand, while also using AI in their own products and security operations tools.

Fortinet also pointed to an upgrade from Moody's Ratings, which raised its senior unsecured notes rating to A3 from Baa1 and its senior unsecured shelf rating to (P)A3 from (P)Baa1. Fortinet said this was the highest rating held by a public cybersecurity company.

Ken Xie, Founder, Chairman and Chief Executive Officer, Fortinet, commented on the quarter's performance and the company's market positioning.

"We are very pleased with our excellent second quarter results, which reflect the differentiated value of our innovation in the AI Era. Our results reflect that customers value Fortinet's unique 'SASE Firewall', with leading firewall, SD-WAN and SASE functionality integrated together on our single FortiOS operating system and powered by our purpose-built FortiASIC, offering customers flexible deployment in a sovereign form factor, on-prem and in the cloud," said Xie.

The updated outlook implies annual revenue growth of about 19 per cent at the midpoint of the new range. With billings, margins and cash flow all moving higher, the quarter marks another strong set of numbers for a cybersecurity company continuing to invest in hardware, software and AI-related partnerships while expanding its product line.