Fortinet, a global cybersecurity leader driving the convergence of networking and security, reported stronger than expected first-quarter 2026 results, with revenue rising 20% year on year to $1.85 billion, as enterprises increased spending on cybersecurity solutions to counter increasingly sophisticated digital threats.
The cybersecurity company said product revenue climbed 41% to $645 million in the quarter ended March 31, while billings rose 31% to $2.09 billion, exceeding the upper end of its financial guidance for both revenue and profitability.
The results reflect sustained global demand for cybersecurity technologies as organizations accelerate digital transformation and invest in integrated platforms that combine networking and security.
Profitability improves
Fortinet reported an operating margin of 31% under Generally Accepted Accounting Principles (GAAP), while its non-GAAP operating margin reached 36%.
Diluted non-GAAP earnings per share rose 41% year on year to $0.82.
Operating cash flow reached a record $1.08 billion, while free cash flow totaled $1.01 billion, underscoring the company’s strong financial position and operating efficiency.
Enterprise demand drives growth
Mr. Ken Xie, founder, chairman and chief executive officer of Fortinet, said the company’s first-quarter performance reflected continued demand across global markets, supported by strong execution.
“The strong billings growth demonstrates the continued trend toward convergence of networking and security, a strategy Fortinet has championed for more than 26 years, alongside the rapid evolution of AI-driven cyber threats,” Xie said.
He added that as network security evolves towards the SASE Firewall, innovations such as FortiOS 8.0 and FortiASIC technology continue to differentiate Fortinet’s platform and support ongoing market share gains.
Xie said Fortinet’s direct operations and manufacturing model also helped the company navigate supply chain challenges.
Product expansion
During the quarter, Fortinet launched FortiOS 8.0, the latest version of the operating system supporting its Fortinet Security Fabric platform, introducing expanded AI capabilities, next-generation SASE functionality, and quantum-safe capabilities.
The company also expanded its FortiGate G Series firewall portfolio with the launch of FortiGate 3500G and FortiGate 400G, targeting enterprises managing growing volumes of encrypted traffic.
Fortinet also expanded its artificial intelligence partnerships through collaborations with Anthropic under Project Glasswing, alongside OpenAI and other technology companies.
Market recognition
Fortinet was named a Gartner Peer Insights Customers’ Choice vendor for software-defined wide area networking (SD-WAN) solutions for the seventh consecutive year, reflecting continued customer adoption of its enterprise networking products.
Outlook raised
For the second quarter of 2026, Fortinet expects revenue between $1.83 billion and $1.93 billion, with billings projected between $2.09 billion and $2.19 billion.
The company forecasts a non-GAAP gross margin of 79.5% to 80.5% and a non-GAAP operating margin of 33% to 35%, with diluted non-GAAP earnings per share expected between $0.72 and $0.76.
For the full 2026 fiscal year, Fortinet raised its outlook, projecting revenue between $7.71 billion and $7.87 billion, representing approximately 15% annual growth.
Service revenue is expected to range between $5.09 billion and $5.15 billion, while total billings are forecast between $8.8 billion and $9.1 billion.
The company expects full-year non-GAAP operating margins between 33% and 36%, with diluted non-GAAP earnings per share projected between $3.10 and $3.16.
Sector growth
The results come as global cybersecurity spending continues to rise, driven by increased investment in cloud protection, network security and AI-enabled threat detection as businesses respond to a rapidly evolving cyber risk landscape.
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