Fourth Quarter 2025 Highlights

• Revenue grew 15% year over year to $1.91 billion
• Product revenue grew 20% year over year to $691 million
• Billings grew 18% to $2.37 billion1
• Unified SASE billings grew 40%
• GAAP operating margin of 33%
• Non-GAAP operating margin of 37%1

Full Year 2025 Highlights

• Revenue grew 14% year over year to $6.80 billion
• Product revenue grew 16% year over year to $2.22 billion
• Billings grew 16% to $7.55 billion1
• Unified SASE & SecOps billings grew 24%
• GAAP operating margin of 31%
• Non-GAAP operating margin of 35%1
• Free cash flow of $2.21 billion1
• Exceeded the ‘Rule of 45' for the sixth consecutive year2

SUNNYVALE, Calif., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the fourth quarter of 2025 and full year ended December 31, 2025.

“We are pleased with our strong finish to the year, highlighted by an excellent fourth quarter driven by broad-based demand across our portfolio, which drove billings above the high end of our guidance,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We continue to execute our strategy by accelerating our investments in high-growth Unified SASE and Security Operations markets, delivering strong momentum while further strengthening our Secure Networking leadership. As the #1 firewall leader with a 55% unit market share, Fortinet is well-positioned to extend that leadership into SASE, driven by our rapidly expanding SASE adoption and growing customer demand. Our easy-to-adopt FortiSASE solution, powered by our single FortiOS operating system, supports both sovereign and public deployments, delivering high performance with significantly lower total cost of ownership than the competition.”

Recent Business Highlights

• Announced an integrated solution with NVIDIA that delivers isolated infrastructure acceleration for the AI Factory, embedding FortiGate VM on BlueField-3 DPUs to provide firewalling, segmentation and policy enforcement directly in the infrastructure for higher performance, stronger isolation and simpler operations.
• Recognized as a Gartner Peer Insights™ Customers' Choice for Security Service Edge for the third consecutive year, making Fortinet the only cybersecurity vendor to receive this distinction.
• Named the inaugural Google Unified Security Recommended partner for network protection, recognizing FortiSASE and FortiGate NGFW for delivering converged networking and security natively on Google Cloud.
• Won the 2025 Red Dot Product Design Award for the FortiGate Rugged series, Fortinet's second consecutive win, recognizing design excellence, reliability and performance at the industrial edge.

Fortinet Expands Share Repurchase Authorization by $1.0 Billion

Fortinet today announced that its Board of Directors has authorized an increase of its share repurchase program by $1.0 billion worth of shares of common stock, for an aggregate authorized repurchase amount of up to $10.25 billion through February 28, 2027. As of February 4, 2026 approximately $1.38 billion remained available under the share repurchase program, including the $1.0 billion increase. Repurchases under Fortinet's share repurchase program may be made through privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Fortinet's share repurchase program does not obligate Fortinet to acquire any particular amount of its common stock, and it may be suspended at any time at Fortinet's discretion. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

Guidance

For the first quarter of 2026, Fortinet currently expects:

• Revenue in the range of $1.700 billion to $1.760 billion
• Billings in the range of $1.770 billion to $1.870 billion
• Non-GAAP gross margin in the range of 80.0% to 81.0%
• Non-GAAP operating margin in the range of 30.0% to 32.0%
• Diluted non-GAAP net income per share in the range of $0.59 to $0.63, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 746 million to 750 million.

For the fiscal year 2026, Fortinet currently expects:

• Revenue in the range of $7.500 billion to $7.700 billion
• Service revenue in the range of $5.050 billion to $5.150 billion
• Billings in the range of $8.400 billion to $8.600 billion
• Non-GAAP gross margin in the range of 79.0% to 81.0%
• Non-GAAP operating margin in the range of 33.0% to 36.0%
• Diluted non-GAAP net income per share in the range of $2.94 to $3.00, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 747 million to 753 million.

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet's website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

First Quarter 2026 Conference Participation Schedule:

• Bernstein TMT Forum
  February 26, 2026

• Morgan Stanley Technology, Media & Telecom Conference
  March 3, 2026

Members of Fortinet's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet's conference presentations are expected to be available via webcast on the company's website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet's website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

About Fortinet (www.fortinet.com)

Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet's solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet's commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet's elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the first quarter and full year 2026, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, changing interest rates or reduced information technology spending; supply chain challenges; negative impacts from global conflicts and their related macroeconomic effects; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers' networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of inflation and changing interest rates in certain geographies and the war in Ukraine; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

Use of Non-GAAP Financial Measures

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

More details could be found via this link: Fortinet Reports Strong Fourth Quarter and Full Year 2025