Fortinet (FTNT) investor relations material

Executive summary

• Achieved strong Q2 2026 results with 33% year-over-year billings growth and 26% revenue growth to $2.05B, driven by robust product and OT segments, innovation in AI-native security, and broad-based demand.

• Product revenue surged 52% to $773M; service revenue rose 14% to $1.28B.

• Free cash flow more than tripled year-over-year to $966M; operating cash flow reached $1.04B.

• Raised full-year 2026 guidance across all top-line metrics and profitability.

• Maintained GAAP profitability every year since IPO and exceeded the 'Rule of 45' for six consecutive years.

Financial highlights

• Non-GAAP gross margin reached 80.9%; GAAP gross margin 80.2%.

• Non-GAAP operating margin hit 38%; GAAP operating margin at 33.7%.

• Non-GAAP EPS rose 41% to $0.90; GAAP EPS up 44% to $0.82.

• Adjusted free cash flow margin was 49%; free cash flow for Q2 was $966M.

• Net income for Q2 was $606.3M, up from $440.1M last year.

Outlook and guidance

• Q3 2026: Billings $2.25B–$2.35B (27% growth midpoint), revenue $2.01B–$2.10B (19% growth midpoint), non-GAAP EPS $0.83–$0.87, operating margin 35–37%.

• Full-year 2026: Billings $9.35B–$9.55B (25% growth midpoint), revenue $8.02B–$8.18B (19% growth midpoint), non-GAAP EPS $3.41–$3.47.

• Service revenue growth expected to accelerate in H2 2026; capital expenditures projected at $350M–$550M.

• Cash paid for income taxes projected at $400M–$450M for 2026.