Fortinet (FTNT) Q2 2026 earnings summary

Executive summary

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

• Product revenue surged 52% to $773M, and free cash flow more than tripled to $966M year-over-year.

• Raised full-year 2026 guidance across all top-line metrics, reflecting continued momentum and market share gains.

• Introduced new AI-driven products, including the SASE firewall, FortiGate 1200G, and FortiSOC, expanding addressable markets.

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

Financial highlights

• Q2 billings grew 33% to $2.37B; total revenue up 26% to $2.05B; product revenue increased 52% to $773M; service revenue up 14% to $1.28B.

• Non-GAAP gross margin reached 80.9%; GAAP gross margin 80.2%; non-GAAP operating margin hit 38%; GAAP operating margin 33.7%.

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

• Free cash flow more than tripled to $966M; adjusted free cash flow margin was 48.6%.

• Moody’s upgraded credit rating to A3, the highest among public cybersecurity firms.

Outlook and guidance

• Raised Q3 2026 guidance: billings $2.25B–$2.35B (27% growth), revenue $2.01B–$2.10B (19% growth), non-GAAP EPS $0.83–$0.87.

• Full-year 2026 guidance: billings $9.35B–$9.55B (25% growth), revenue $8.02B–$8.18B (19% growth), service revenue $5.18B–$5.22B (14% growth), non-GAAP EPS $3.41–$3.47.

• Service revenue growth expected to accelerate in the second half, driven by product revenue momentum.

• Capital expenditures for 2026 estimated between $350M and $550M.

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