Fortinet (FTNT) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong results with 33% billings growth to $2.37B and 26% revenue growth to $2.05B, driven by innovation, execution, and broad-based demand across Secure Networking, SASE, and OT security.

• Product revenue surged 52% year-over-year to $773M, and service revenue rose 14% to $1.27B.

• Free cash flow more than tripled to $966M, with adjusted free cash flow margin reaching 49%.

• GAAP EPS rose 44% to $0.82; non-GAAP EPS up 41% to $0.90; non-GAAP operating margin reached a record 38%.

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

Financial highlights

• Billings: $2.37B, up 33% year-over-year; total revenue: $2.05B, up 26%; product revenue: $773M, up 52%; service revenue: $1.27B, up 14%.

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

• Non-GAAP operating margin: 38%; GAAP operating margin: 33.7%.

• Free cash flow: $966M; adjusted free cash flow margin: 49%.

• Net income for Q2 was $606.3M; diluted shares outstanding: 739.9M.

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, driven by product revenue momentum.

• Capital expenditures for 2026 estimated at $350M–$550M.