TLDR
- Fortinet stock jumps 11% after hours as second-quarter growth beats expectations
- Product revenue climbs 52% as demand strengthens across security platforms globally
- Quarterly revenue rises 26% to $2.05 billion on stronger product sales momentum
- Billings increase 33% to $2.37 billion as customer security spending accelerates
- Fortinet keeps 2026 guidance firm with annual revenue projected above $8.02 billion
Fortinet (FTNT) stock rose 2.16% to close at $153.22, then surged 11.00% after hours to $170.08. The move followed strong second-quarter growth across revenue, product sales, billings, earnings, and cash generation. Demand for integrated cybersecurity platforms strengthened as enterprises expanded network, cloud, endpoint, and security operations spending.
Fortinet Revenue and Earnings Accelerate
Fortinet reported second-quarter revenue of $2.05 billion, representing 26% growth from the previous year. Product revenue climbed 52% to $773 million, reflecting stronger demand for hardware and integrated security systems. Meanwhile, billings increased 33% to $2.37 billion, showing continued customer spending and contract activity.
The company posted a 34% GAAP operating margin and a 38% non-GAAP operating margin. GAAP earnings per share rose 44% to $0.82, while adjusted earnings increased 41% to $0.90. Therefore, Fortinet converted faster sales growth into stronger profitability during the quarter.
Operating cash flow reached $1.04 billion, while free cash flow totaled $966 million. These results gave Fortinet additional capacity to fund development, partnerships, and product expansion. At the same time, the cash performance supported Fortinet stock’s sharp after-hours rally following the earnings release.
Cybersecurity Products Expand Fortinet’s Market Reach
Fortinet expanded its platform during the quarter through new firewall, endpoint, and security operations products. The FortiGate 1200G series combined local enforcement with cloud-delivered security for hybrid infrastructure and sovereignty requirements. In addition, FortiSOC brought six security operations functions into one cloud-delivered platform.
FortiEndpoint also combined several endpoint security tools into one agent for simpler risk management. The product targets teams managing data protection, device security, and broader technology adoption. Together, these launches strengthened Fortinet’s position across networking, endpoint protection, and security operations.
Fortinet also started a strategic collaboration with Intel to develop its sixth-generation security processor. The agreement combines Fortinet’s processor knowledge with Intel’s design, packaging, development, and manufacturing capabilities. Consequently, Fortinet expects faster processor development and a more resilient global supply chain.
Fortinet Guidance Supports Continued Growth
For the third quarter, Fortinet projected revenue between $2.01 billion and $2.10 billion. The company expects billings between $2.25 billion and $2.35 billion during the same period. It also forecast adjusted earnings between $0.83 and $0.87 per diluted share.
Fortinet expects a third-quarter non-GAAP gross margin between 79% and 81%. It also projected a non-GAAP operating margin between 35% and 37%. These ranges indicate management expects profitability to remain high as revenue and billings continue growing.
For 2026, Fortinet forecast revenue between $8.02 billion and $8.18 billion. The company expects annual billings between $9.35 billion and $9.55 billion. It projected adjusted earnings between $3.41 and $3.47 per share, alongside service revenue above $5.18 billion.
