Fortinet, Inc. (FTNT) Earnings History

Fortinet, Inc. - Q3 FY2025 Earnings

Filed at: Nov 5, 2025, 3:09 PM EST|Read from source

EXECUTIVE SUMMARY

Fortinet reported strong third quarter results with double-digit revenue and billings growth, driven by broad-based demand for its cybersecurity solutions and leadership in areas like SASE and AI data centers.

POSITIVE HIGHLIGHTS

  • •

    Revenue grew 14% year over year to $1.72 billion.

    positive
  • •

    Product revenue grew 18% year over year to $559.3 million.

    positive
  • •

    Billings grew 14% year over year to $1.81 billion.

    positive
  • •

    Record third quarter GAAP operating margin of 32%.

    positive
  • •

    Record third quarter Non-GAAP operating margin of 37%.

    positive
  • •

    FortiSASE billings increased by over 100% year over year.

    positive

CONCERNS & RISKS

  • •

    While GAAP operating income grew, the growth rate is not explicitly stated, making it difficult to assess operating leverage.

    attention
  • •

    The company's guidance for Q4 FY2025 and FY2025 includes a range, indicating some uncertainty in future performance.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.72B
+14.0%
Prior year: $1.51B
Annual (YTD)
$4.89B
N/A
Prior year: $4.30B
Net Income
Quarterly
$473.90M
-12.2%
Prior year: $539.90M
Annual (YTD)
$1.35B
N/A
Prior year: $1.22B
EPS (Diluted)
Quarterly
$0.62
-11.4%
Prior year: $0.70
Annual (YTD)
$1.75
N/A
Prior year: $1.58
Operating Income
Quarterly
$547.30M
+16.2%
Prior year: $470.90M
Annual (YTD)
$1.46B
N/A
Prior year: $1.23B
EPS (Basic)
Quarterly
$0.63
-11.3%
Prior year: $0.71
Annual (YTD)
$1.77
N/A
Prior year: $1.60

MARGIN ANALYSIS

Gross Margin
Current Quarter
80.8%
Prior Year
81.3%
YoY Change
-53 bps
Operating Margin
Current Quarter
31.7%
Prior Year
31.2%
YoY Change
+50 bps
Net Margin
Current Quarter
27.5%
Prior Year
35.8%
YoY Change
-833 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY 2025

revenue
$6720000.0B—$6780000.0B
Mid-point: $6750000.0B
service_revenue
$4575000.0B—$4595000.0B
Mid-point: $4585000.0B
billings
7,370,000,000—7,470,000,000
Mid-point: 7,420,000,000
non-gaap_operating_margin
34.5%—35.0%
Mid-point: 34.8%
"percent"
diluted_non_gaap_net_income_per_share
2.66—2.7
Mid-point: 2.68

Q4 2025

revenue
$1825000.0B—$1885000.0B
Mid-point: $1855000.0B
billings
2,185,000,000—2,285,000,000
Mid-point: 2,235,000,000
non-gaap_operating_margin
34.5%—35.5%
Mid-point: 35.0%
"percent"
diluted_non_gaap_net_income_per_share
0.73—0.75
Mid-point: 0.74

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

MANAGEMENT COMMENTARY

Fortinet is pleased with excellent third quarter results driven by leading innovation and customer-first culture.

— Fortinet, Inc., Q3 FY2025 2025 Earnings Call

Broad-based demand for solutions across organizations of all sizes.

— Fortinet, Inc., Q3 FY2025 2025 Earnings Call

FortiSASE is emerging as a fast-growing leader in the SASE market, integrating Firewall, SD-WAN, and SASE.

— Fortinet, Inc., Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Fortisaase Billings Growth
100
percent

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.