Fortinet (FTNT) Bank of America 2026 Global Technology Conference summary

Growth drivers and market trends

• Billing growth reached 31% with secure networking and unified SASE both up over 30% year-over-year.

• AI adoption is accelerating network and security convergence, driving increased enterprise demand and internal segmentation.

• OT security saw 70%-80% year-over-year growth, with unique protocols and ruggedized hardware requirements.

• Sustainable growth is attributed to diversified business across geographies, verticals, and customer sizes, with urgency from CSOs in the AI era.

• AI is increasing internal enterprise traffic by 20%-40%, boosting demand for internal security solutions.

Competitive differentiation and strategy

• Product revenue grew 41% in Q1, outpacing competitors reporting single-digit or negative growth.

• Competitive edge is based on innovation, integration, and improvement (the "three I's"), including internally developed SASE, SD-WAN, and ASICs.

• Integrated solutions in a single OS reduce costs to one-third of competitors and simplify deployment.

• Focus on long-term inventory management and direct supplier relationships ensures supply chain stability and margin maintenance.

• Market share gains are expected to continue due to consolidation and competitors falling behind.

SASE and product portfolio evolution

• Unified SASE and SD-WAN are integrated into the same OS, enabling rapid customer adoption and transition from firewalls.

• SASE business is growing faster than competitors, with 18% enterprise penetration and 50% year-over-year growth.

• Sovereign SASE (on-premises) is a major growth area, especially in EMEA, offering 2-3x the addressable market of cloud SASE.

• Bundled services for SASE and SD-WAN offer significant cost savings and are driving strong adoption.

• Mid-sized customers and MSSPs are increasingly adopting the full portfolio, leveraging AI visibility and cost control.