Fortinet Raises 2026 Billings Outlook For The Third Time As Product Revenue Jumps 37%
Third-quarter revenue grew 20% to $2.08 billion, and the buyback authorization was increased by $1.2 billion.
Fortinet, which sells cybersecurity products that combine networking and security, raised its 2026 billings guidance for the third time this year after third-quarter revenue grew 20% from a year earlier to $2.08 billion. Product revenue grew 37% to $765 million, the company said in its Wednesday earnings release.
Billings and profit climb
Billings, which the company defines as revenue plus the change in deferred revenue, grew 29% to $2.34 billion. Net income was $635.5 million, or $0.86 per diluted share, against $473.9 million, or $0.62, a year earlier.
On an adjusted basis, earnings were $0.91 per share and the operating margin was 38%. Operating cash flow was $946 million and free cash flow was $865 million.
CEO Ken Xie said results reflect "broad-based demand across our entire portfolio." He added that as AI introduces new attack surfaces, "Network Security remains the critical foundation of AI Security."
The new forecast
For 2026, Fortinet now expects revenue of $8.125 billion to $8.215 billion and billings of $9.568 billion to $9.718 billion. Adjusted earnings are guided to $3.54 to $3.58 per diluted share.
For the fourth quarter, it expects revenue of $2.155 billion to $2.245 billion and billings of $2.775 billion to $2.925 billion. Adjusted earnings per share are guided to $0.93 to $0.95.
Cash pile and buyback
The share repurchase authorization was increased by $1.2 billion, leaving $2 billion remaining. Cash and cash equivalents stood at $3.75 billion on September 30, up from $2.50 billion at the end of 2025. Over the first nine months of 2026 the company spent $972.8 million repurchasing stock and repaid $500.0 million of senior notes.
Fortinet's platform, the Security Fabric, spans secure networking, cloud-delivered security access and AI-driven security operations. Recent announcements include an inline AI security service for FortiGate customers and a collaboration with Oracle on AI security.
Fortinet held its earnings call at 4:30 p.m. Eastern on Wednesday and is scheduled to present at the BMO Technology and Innovation Leaders Conference on November 12.
Sources
- 8-K Filing — Fortinet, Inc. (FTNT) — SEC EDGAR
- Exhibit ftntq3-2026ex991.htm — Fortinet, Inc. 8-K exhibit — SEC EDGAR
- Fortinet Reports Strong Third Quarter 2026 Financial — globenewswire.com
