FTNT US S&P 500NASDAQ-100Russell 1000 Earnings call
Fortinet (FTNT) · Q2 2026 results and valuation
Share price: $128.10 · 2026-11-11
Fortinet provides a security platform that integrates networking and security services for enterprises, government organizations, and service providers. The company offers products such as network firewalls, secure access solutions, and security for operational technology across various industries and global markets. Source: 10-K annual report (2026-02-25)
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 6 May 2026
Net income up 13.4% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
1 · Numbers
+13.4%
Net income vs Q1 2026
Outlook given
Net income 606.3M vs 534.5M
Revenue +10.7%
Against the same quarter last year (Q2 2025) it is +37.8%, so it is not just seasonal.
Why Against the same quarter last year (+37.8%), net income grew primarily because higher-quality earnings were supported by disciplined stock-based compensation, while product revenue increased 52% and billings grew 33% due to robust demand for physical infrastructure and AI-driven security operations.
2 · How management spoke
Very upbeat
Among the most upbeat of all company calls
Answers to analysts: very upbeat, but clearly less so than the script.
Similar to last call.
3 · What stood out
Fortinet's free cash flow more than tripled year-over-year to $966 million due to improved linearity, higher billings, and strong working capital discipline.
Valuation
Is Fortinet undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 15.5% growth a year (3-year revenue growth), the model's fair value is $112.30 a share — the stock trades 14% above it. Today's price assumes 17.3% growth a year.
Current price
$128.10
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.3% for 10 yrs
Fair value / share
$112.30
Buy below
$84.23
Price vs fair value
Overvalued 14%
Price vs buy-below price
Overvalued 52%
Read between the lines
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Figure
Total revenue increased 26% and billings grew 33% due to a 52% growth in product revenue.
Source quote
“Billings grew 33%, while total revenue increased 26% propelled by 52% growth in product revenue.”
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Figure
Free cash flow more than tripled year-over-year to $966 million due to improved linearity, higher billings, and strong working capital discipline.
Source quote
“Free cash flow more than tripled year-over-year to $966 million, benefiting from improved linearity, higher billings and strong working capital discipline.”
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Figure
The SASE Firewall business grew 34% to over $2 billion in the second quarter, establishing the company as a top player in that space.
Source quote
“In the second quarter, Fortinet SASE Firewall business grew 34% to over $2 billion, cementing our position as a top player in this space.”
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Guidance
The company exceeded the high end of its guidance for billings, total revenue, operating margin, and earnings per share in the second quarter.
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Figure
Total billings grew 33% to $2.37 billion due to robust demand for physical infrastructure and related attached services across secure networking and Unified SASE.
Source quote
“Total billings grew 33% to $2.37 billion, driven by robust demand for physical infrastructure and related attached services across secure networking and Unified SASE.”
1 more
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Key theme
Demand for the OT portfolio and related services remains strong due to increasing cyber threats, AI adoption, and geopolitical uncertainty.
Source quote
“Consequently, we continue to see strong demand across our OT portfolio and related services, driven by the combination of increasing cyber threats, AI adoption and geopolitical uncertainty.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 95% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“This performance exceeded the high end of our guidance, driven by stronger-than-expected revenue growth, disciplined cost management and growing efficiencies from our AI initiatives.”
“Our continued momentum reflects broad-based demand and strong execution across customer segments, industry verticals, geographies and our integrated and innovative portfolio of solutions, further validating the strength of our platform...”
“Our success is highlighted by FortiSASE billings growing over 100%, benefiting from expansion sales across our installed base, competitive replacements and new wins with large enterprises.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.05B | 1.85B | +10.7% | 1.63B | +25.6% |
| Gross profit | 1.64B | 1.49B | +10.6% | 1.32B | +24.9% |
| Operating income | 689.3M | 580.0M | +18.8% | 458.0M | +50.5% |
| Net income | 606.3M | 534.5M | +13.4% | 440.1M | +37.8% |
| EPS | 0.82 | 0.72 | +13.9% | 0.57 | +43.9% |
| P/E today 38.8 | 54.3 | 31.7 | +22.6 | 42.1 | +12.2 |
Topics
Most discussed now
- Fortinet continues to expect service revenue growth to pick up in the second half of the year, driven by accelerated...
- Fortinet delivered exceptional billings growth across each of its three pillars in the first quarter, followed by an even stronger...
Faded since Q1 2026
- Fading That's I feel this time is that Fortinet definitely want to leverage this opportunity and whether AI or kind of...
- Fading That's also the reason Fortinet kinds of launched a new bundled service to accelerate both the current customer and also...
- Fading That's Fortinet sees pretty strong growth in the high end, but at the same time, you can look at the...
- Fading GAAP earnings per share increased 29%, demonstrating Fortinet's commitment to strong shareholder return.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Fortinet reported revenue of $2.05 billion, up 26% year over year, with product revenue of $773 million up 52% year over year for the second quarter of 2026.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Fortinet reported revenue of $1.85 billion, up 20% year over year, with product revenue of $645 million up 41% and billings of $2.09 billion up 31% year over year.
- Results of operations · SEC 8-K
Fortinet reported 2025 annual revenue of $6.80 billion, up 14% year over year, with product revenue of $2.22 billion and billings of $7.55 billion.
- Results of operations · SEC 8-K
Fortinet reported revenue of $1.72 billion, up 14% year over year, and product revenue of $559.3 million, up 18% year over year, for the third quarter ended September 30, 2025.
- Other events · SEC 8-K
Fortinet, Inc. authorized a $1 billion increase to its share repurchase program, bringing the total authorized amount to $9.25 billion and extending the deadline to February 28, 2027.
- Results of operations · SEC 8-K
Fortinet reported revenue of $1.63 billion, up 14% year over year, and billings of $1.78 billion, up 15% year over year, for the second quarter ended June 30, 2025.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$2.93B
2026-06-30
Short-term investments
$1.23B
Long-term investments
$399.1M
total liquidity $4.57B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -4.2% YoY, -0.8% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 765.0M |
| Q1 2025 | 768.3M |
| Q2 2025 | 765.5M |
| Q3 2025 | 755.5M |
| Q1 2026 | 738.8M |
| Q2 2026 | 733.1M |
Shares outstanding: 733.7M (2026-07-28)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 70 filings; 50 filings parsed.
Sold by insiders
542.7K shares
$79.9M · 44 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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the first quarter of 2026
trough for our service revenue growth rate
Source quote
“We believe the first quarter of 2026 marked the trough for our service revenue growth rate, and we anticipate a positive trajectory in our growth rates going forward.”
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third quarter
billings
Source quote
“For the third quarter, we expect billings in the range of $2.25 billion to $2.35 billion, which at the midpoint represents growth of 27%.”
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third quarter
revenue
Source quote
“Revenue in the range of $2.01 billion to $2.1 billion, which at the midpoint represents growth of 19%.”
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third quarter
non-GAAP gross margin
Source quote
“Non-GAAP gross margin of 79% to 81%, non-GAAP operating margin of 35% to 37%.”
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third quarter
non-GAAP earnings per share
Source quote
“Non-GAAP earnings per share of $0.83 to $0.87, which assumes a share count between 741 million and 745 million.”