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FY2026 Q2
Raised
Fortinet, Inc. earnings call
Buzzberg read
Billings grew 33%, product revenue up 52%
Fortinet reported a record Q2 with billings up 33%, product revenue up 52%, and raised full-year guidance. Management emphasized a new 'SASE firewall' category and strong momentum in OT, AI data centers, and sovereign SASE. The Intel ASIC partnership and pricing discipline were highlighted as supply chain moats. Total billings grew 33% to $2.37B; product revenue surged 52% to $773M.
Buzzberg read Billings grew 33%, product revenue up 52% Fortinet reported a record Q2 with billings up 33%, product revenue up 52%, and raised full-year guidance. Management emphasized a new 'SASE firewall' category and strong momentum in OT, AI data centers, and sovereign SASE. The Intel ASIC partnership and pricing discipline were highlighted as supply chain moats. Total billings grew 33% to $2.37B; product revenue surged 52% to $773M. Read full analysisCollapse analysis
Fortinet reported a record Q2 with billings up 33%, product revenue up 52%, and raised full-year guidance. Management emphasized a new 'SASE firewall' category and strong momentum in OT, AI data centers, and sovereign SASE. The Intel ASIC partnership and pricing discipline were highlighted as supply chain moats. Total billings grew 33% to $2.37B; product revenue surged 52% to $773M.
- Full-year guidance raised across revenue, EPS, margins, and service revenue.
- New 'SASE firewall' strategy positions Fortinet as the only vendor with integrated on-prem and cloud SASE, targeting a market 2-3x larger than cloud-only SASE.
- OT billings grew 55%+; management claims no major competitor is focused on OT security.
Revenue$2.0479B+11% QoQ
EPS$0.90+10% QoQ
Gross margin80.24%Reported
Operating margin33.66%Reported
5 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
SASE firewall TAM 2-3x larger than cloud-only SASE
AI
Eight-figure AI data center win with cloud provider
Show 2 more callouts
Demand
OT billings grew over 55%
Guidance
Raised full-year guidance across all top-line metrics
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $2.0479B | +11% QoQ |
| EPS | $0.90 | +10% QoQ |
| Gross margin | 80.24% | Reported |
| Operating margin | 33.66% | Reported |
| Free cash flow | $1.9721B | Reported |
| Capex | $0.1486B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q3 | $0.83–$0.87 | $0.85 | Initiated |
| EPS | FY2026 | $3.41–$3.47 | $3.44 | Raised |
| Gross margin | FY2026 | 79%–81% | 80% | Raised |
| Gross margin | FY2026 Q3 | 79%–81% | 80% | Initiated |
| Operating margin | FY2026 | 35%–37% | 36% | Raised |
| Operating margin | FY2026 Q3 | 35%–37% | 36% | Initiated |
| RevenueSERVICE | FY2026 | $5.18B–$5.22B | $5.2B | Raised |
| Revenue | FY2026 | $8.02B–$8.18B | $8.1B | Raised |
| Revenue | FY2026 Q3 | $2.01B–$2.1B | $2.055B | Initiated |
AI, capex & demand read
Management read
confident
Management expressed strong confidence driven by record billings growth, raised guidance, and bullish commentary on the SASE firewall opportunity and AI-driven demand.
Management AI read
Management stated that AI is reshaping the security landscape, driving demand for high-performance security to protect AI workloads and data centers, with Fortinet's integrated platform and ASIC technology positioned to securely scale next-generation AI environments.
Investment and capacity
Management guided infrastructure investments of $350-$550 million for the full year, with $100-$150 million in Q3, continuing investment in ASIC technology and global infrastructure to support growth.
all 3 named companies below
Companiesreturns since call
Partners
Partners
Ken Xie
Fortinet's long-standing ASIC partnership with Intel is highlighted as a key manufacturing advantage, reinforcing supply chain resilience.
Evidence
“the partnership with Intel also very very significant because Intel probably the only manufacturer in the U.S. probably do all this kind of chip manufacture and we have great partnership”
Competitors
Competitors
Ken Xie
Fortinet's OT billings grew over 55% and management claims to be the only network security vendor focused on OT security, while competitors have not yet entered the space – a white-space opportunity. — Suggests Fortinet is capturing a fast-growing, under-penetrated segment ahead of larger platform rivals, which could widen its lead in critical infrastructure security.
Evidence
“It's different than whether Palo Alto Crosstrek. One is more endpoint side, the other probably a little bit everything with endpoint, with secure operation, with a lot of acquisition.”
External signals
Supply-chain alpha · 2returns since call
Fortinet has high single-digit price increases built into H2 billings assumptions, but adjusts pricing monthly based on component costs (e.g., memory) to maintain stable gross margins, suggesting pricing power and cost pass-through discipline.
Evidence
“We have approximately high single-digit impact built into our billings assumptions for the second half. And it's very dependent on product mix...”
Fortinet's OT billings grew over 55% and management claims to be the only network security vendor focused on OT security, while competitors have not yet entered the space – a white-space opportunity.
Evidence
“We are probably the only network security vendor to talk about OT security the last few years. I have not heard our competitor talk about OT security yet.”
Methodology & coverage
Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.