Fortinet Exceeds Q2 Earnings Expectations, Raises Full-Year Outlook
Fortinet reported second-quarter results that exceeded expectations, driven by strong demand across its Secure Networking, SASE, and AI-driven Security Operations segments. The company recorded a 33% year-over-year increase in billings to $2.37 billion and revenue growth of 26% to $2.05 billion. Product revenue surged 52%, while non-GAAP earnings per share rose by 41%. Fortinet also raised its full-year guidance, projecting revenue between $8.02 billion and $8.18 billion for the year. The CFO highlighted strong performance in higher-performing product models and increased average selling prices. OT billings grew over 55%, reflecting heightened demand from customers securing AI workloads and operational technology environments. Fortinet's SASE firewall business, which combines Secure Networking with Unified SASE capabilities, saw a 34% growth to more than $2 billion in the quarter. The company also reported free cash flow of $966 million for Q2 and continued share repurchases. CEO Ken Xie emphasized that AI is reshaping security traffic patterns within enterprises and data centers, increasing demand for visibility and control.
Tickers: $FTNT