Fortinet (FTNT) investor relations material

Executive summary

• Delivered strong Q2 2026 results with 33% year-over-year billings growth and 26% revenue growth to $2.05B, driven by innovation, execution, and robust product and OT security segments.

• Product revenue surged 52% to $773M; service revenue rose 14% to $1.28B; free cash flow more than tripled year-over-year to $966M.

• GAAP EPS rose 44% to $0.82; non-GAAP EPS up 41% to $0.90; operating cash flow reached $1.04B.

• Raised full-year 2026 guidance across all top-line metrics and profitability, projecting continued double-digit growth.

• 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 a record 38%; GAAP operating margin 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.

• Infrastructure investments expected at $350M–$550M for the year; cash paid for income taxes projected at $400M–$450M.

• Product and service revenue expected to continue year-over-year growth for the remainder of 2026.