Fortinet

Fortinet (FTNT) Q2 2024 Earnings

Reported Aug 6, 2024 at 4:07 PM ET · SEC Source

Q2 24 EPS

$N/A

Est. $0.41

Q2 24 Revenue

N/A

Est. $1.43B

vs S&P Since Q2 24

+96.5%

BEATING MARKET

FTNT +146.2% vs S&P +49.7%

Market Reaction

Did FTNT Beat Earnings? Q2 2024 Results

Fortinet delivered a blowout second quarter for fiscal 2026, extending its streak of consensus beats to six consecutive quarters as the cybersecurity giant posted non-GAAP earnings per share of $0.90, clearing the $0.75 analyst estimate by 20.53%, wh… Read more Fortinet delivered a blowout second quarter for fiscal 2026, extending its streak of consensus beats to six consecutive quarters as the cybersecurity giant posted non-GAAP earnings per share of $0.90, clearing the $0.75 analyst estimate by 20.53%, while revenue of $2.05 billion topped expectations by 8.42% and grew 25.6% year over year. The headline driver was a 52% surge in product revenue to $773 million, fueled by robust demand for FortiGate appliances tied to the ongoing firewall refresh cycle and accelerating AI infrastructure deployments, which pushed total billings up 33% year over year to $2.37 billion, a forward indicator of continued booking strength. Profitability expanded sharply alongside the top-line beat, with non-GAAP operating margin widening to 38.0% from 33.1% a year ago and free cash flow more than tripling to $965.60 million. Looking ahead, Fortinet raised its full-year 2026 revenue guidance to $8.02 billion to $8.18 billion, implying approximately 19% year-over-year growth, with a $7.68 billion deferred revenue balance underpinning visibility into the second half.

Key Takeaways

  • Product revenue grew 52% YoY driven by strong hardware demand and firewall refresh cycle
  • Billings grew 33% YoY to $2.37 billion indicating strong bookings momentum
  • Non-GAAP operating margin expanded to 38.0% from 33.1% YoY
  • Free cash flow margin expanded to 47.2% from 17.4% YoY
  • Operating cash flow more than doubled to $1.04 billion from $451.9 million YoY
24/7 Wall St

FTNT YoY Financials

Q2 2024 vs Q2 2023, source: SEC Filings

24/7 Wall St

FTNT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 22 Q2 26

“We are very pleased with our excellent second quarter results, which reflect the differentiated value of our innovation in the AI Era.”

— Ken Xie, Q2 2024 Earnings Press Release