Fortinet (FTNT) Q3 2026 Earnings
GAAP net income includes a $17.0 million gain from an escrow settlement related to a prior business combination and a $1.4 million gain on intellectual property matters (both excluded from non-GAAP); non-GAAP results also reflect a $(29.4) million tax adjustment to an 18% effective tax rate. GAAP diluted EPS was $0.86.
How Did FTNT Stock React to Q3 2026 Earnings?
Did FTNT Beat Earnings? Q3 2026 Results
Yes. Fortinet reported Q3 2026 earnings of $0.91 a share on Oct 28, 2026, beating the $0.86 consensus estimate by 6.0%. Revenue was $2.1B against a $2.1B estimate.
Fortinet delivered a strong third quarter of 2026, extending its consensus EPS beat streak to seven consecutive quarters as adjusted non-GAAP earnings of $0.91 per share topped the $0.86 consensus estimate by 6.00%, while revenue of $2.08 billion edged past expectations by 0.71% and grew 20.5% year over year. The headline driver was a sharp acceleration in hardware demand, with product revenue surging 37% to $765.00 million, a pace that lifted total billings 29% to $2.34 billion and underscored broad-based appetite for Fortinet's FortiGate appliances even as the richer product mix weighed on gross margin, which narrowed to 79.6% on a non-GAAP basis from 81.6% a year earlier. Free cash flow reached $864.80 million, representing a 41.6% margin compared with 32.9% in the prior-year period. Looking ahead, the company raised its full-year revenue outlook to roughly 20% growth, guiding to $8.13 to $8.21 billion, and marked its third billings guidance increase of the year, targeting $9.57 to $9.72 billion, with fourth-quarter non-GAAP EPS guided to $0.93 to $0.95.
- Revenue grew 20% year over year to $2.08 billion
- Product revenue grew 37% year over year to $765 million
- Billings grew 29% year over year to $2.34 billion
- Broad-based demand across the entire portfolio
- Non-GAAP operating margin expanded to 38.2% from 36.9%
- Free cash flow of $864.8 million; free cash flow margin of 41.6% vs 32.9% a year ago
“We are very pleased with our excellent third quarter results, which reflect strong execution and broad-based demand across our entire portfolio, allowing us to raise our 2026 billings guidance for the third time this year.”
Fortinet CEO, on the earnings call
What Is Fortinet's Outlook?
For Q4 2026, Fortinet expects revenue of $2.155-$2.245 billion and billings of $2.775-$2.925 billion. It expects non-GAAP gross margin of 78.0%-80.0% and non-GAAP operating margin of 35.5%-37.5%. Diluted non-GAAP EPS is guided to $0.93-$0.95, assuming an 18% tax rate and 741-745 million diluted shares. For fiscal 2026, guidance was raised to approximately 20% revenue growth: revenue of $8.125-$8.215 billion and service revenue of $5.150-$5.170 billion. Billings are guided to $9.568-$9.718 billion, which management said marks the third billings guidance raise this year. The company expects non-GAAP gross margin of 79.7%-80.3% and non-GAAP operating margin of 36.5%-37.5%. Diluted non-GAAP EPS is guided to $3.54-$3.58, assuming 741-743 million diluted shares.
FTNT YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.1B | $1.7B | +20.5% |
| Gross Profit | $1.6B | $1.4B | +16.7% |
| Operating Income | $704.3M | $545.9M | +29.0% |
| Net Income | $635.5M | $473.9M | +34.1% |
FTNT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.