Fortinet (FTNT) Q3 2026 earnings summary

Executive summary

• Q3 billings grew 29% to $2.34B and revenue rose 20% to $2.078B; strong demand supported a third increase to FY26 billings and revenue guidance.

• Demand was broad-based across AI, SASE, network upgrades and OT security, with management reporting no Q3 slowdown.

Financial highlights

• Product revenue increased 37% to $765.0M and service revenue grew 13% to $1.313B.

• GAAP operating income rose 29% to $704.3M; net income reached $635.5M, compared with $473.9M a year earlier.

• GAAP diluted EPS was $0.86 versus $0.62; non-GAAP diluted EPS was $0.91 versus $0.74.

• Free cash flow was $864.8M; adjusted free cash flow was $912.2M, with a 44% margin.

Outlook and guidance

• Q4 billings guidance is $2.775B–$2.925B and revenue guidance is $2.155B–$2.245B, implying midpoint growth of 20% and 15%, respectively.

• Q4 non-GAAP gross margin is expected at 78%–80%, operating margin at 35.5%–37.5%, and EPS at $0.93–$0.95.

• FY26 billings guidance is $9.568B–$9.718B; revenue is $8.125B–$8.215B and service revenue is $5.150B–$5.170B.

• FY26 non-GAAP gross margin is expected at 79.7%–80.3%, operating margin at 36.5%–37.5%, and EPS at $3.54–$3.58.

• For 2027, billings and revenue growth are expected to outpace the addressable market, with service revenue growth expected to exceed 2026.