Pricing Log in Create free account
Saturday 17 October 2026 Export FTNT’s income statement to Excel — free account

Fortinet, Inc.

FTNT Technology Software Infrastructure

Fortinet, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $6.8 billion, up 14.2% from fiscal 2024. In the quarter to June 2026, revenue grew 25.6%, EPS grew 45.6%, free cash flow grew 239.9% and total debt fell 50.1%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; revenue growth for ten consecutive years, operating cash flow growth for ten.

169.13 12.78 −7.03%
Market cap
$133.5B
P/E
59.1×
Fwd P/E
52.1×
Dividend yield
—
F-score
5/9
Altman Z
5.29
Beneish M
−2.64
Dividend safety
n/a
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Fortinet, Inc. (FTNT) Financial Analysis

Updated · Covers results through Q2 FY2026 · Sources · How this is made

Snapshot

Fortinet generated $6.8 billion of revenue, $5.5 billion of gross profit, $2.1 billion of operating income and $1.9 billion of net income in FY2025. Diluted EPS was $2.42 and free cash flow was $2.2 billion in FY2025.

The latest reported quarter was Q2 FY2026, when revenue reached $2.0 billion, gross profit was $1.6 billion, operating income was $689.3 million and net income was $606.3 million. Diluted EPS was $0.82 and free cash flow was $965.6 million in Q2 FY2026. Revenue for the TTM to Q2 FY2026 was $7.5 billion, with net income of $2.1 billion and free cash flow of $3.1 billion in the TTM to Q2 FY2026.

Growth

Revenue was $6.8 billion in FY2025, growing 14.2% in FY2025 against FY2024. Revenue compound annual growth was 15.5% in FY2022–FY2025 and 21.3% in FY2020–FY2025. Diluted EPS was $2.42 in FY2025, with diluted EPS growth of 7.08% in FY2025 against FY2024.

Free cash flow was $2.2 billion in FY2025 and grew 18.4% in FY2025 against FY2024. Free cash flow compound annual growth was 15.4% in FY2022–FY2025 and 18.4% in FY2020–FY2025. In Q2 FY2026, revenue rose 25.6% against Q2 FY2025, diluted EPS rose 43.9% against Q2 FY2025 and free cash flow rose 239.9% against Q2 FY2025.

Profitability

Gross margin was 80.5%, operating margin was 30.7%, pre-tax margin was 33.6% and net margin was 27.3% in FY2025. Over FY2020–FY2025, gross margin changed by 2.4 percentage points, operating margin changed by 10.2 percentage points, pre-tax margin changed by 12.7 percentage points and net margin changed by 8.4 percentage points.

Gross margin declined by −0.1 percentage points, while operating margin increased by 0.4 percentage points in FY2024–FY2025. Pre-tax margin declined by −1.0 percentage point and net margin declined by −2.0 percentage points in FY2024–FY2025. Return on assets was 18.4%, return on equity was 135.7% and return on invested capital was 0.00% in FY2025. Operating margin was 33.7% in Q2 FY2026.

Balance sheet

Cash and short-term investments were $3.6 billion, total debt was $996.3 million and net debt was −$2.6 billion in FY2025. The negative net-debt figure indicates that cash and short-term investments exceeded total debt in FY2025. Shareholders’ equity was $1.2 billion, working capital was $866.2 million and book value per share was $1.63 in FY2025.

At Q2 FY2026, net debt was −$3.6 billion, compared with −$2.8 billion in Q1 FY2026. The current ratio was 1.3× and debt to equity was 0.3× in Q2 FY2026. Net debt was also lower than the −$2.1 billion reported in Q3 FY2025 before moving to −$2.6 billion in FY2025.

Cash flow & capital return

Operating cash flow was $2.6 billion and capital expenditure was $364.8 million in FY2025. Free cash flow was $2.2 billion in FY2025, equal to 120.1% of net income in FY2025. Operating cash flow grew 14.7% and free cash flow grew 18.4% in FY2025 against FY2024.

Operating cash flow was $3.4 billion and free cash flow was $3.1 billion in the TTM to Q2 FY2026. Net share repurchases were $2.2 billion in FY2025. Weighted average shares declined to 758.0 million shares in FY2025 from 764.4 million shares in FY2024, while the share-count change was −7.67% in FY2020–FY2025. Dividends are not reported.

Valuation

Market capitalisation was $129.3 billion as of September 28, 2026. The P/E was 61.7× as of September 28, 2026, above the five-year median of 41.3× as of September 28, 2026, over the five fiscal years to FY2025, and the ten-year median of 47.5× as of September 28, 2026, over the ten fiscal years to FY2025. It was 2.2× the industry median P/E as of September 28, 2026.

P/S was 17.2× as of September 28, 2026, above its five-year median of 8.9× and ten-year median of 8.6×; it was 5.4× the industry median as of September 28, 2026. P/B was 83.3× as of September 28, 2026, above its five-year median of 48.3× and 25.4× the industry median as of September 28, 2026. EV/Sales was 16.8× and EV/Cash flow was 40.5× as of September 28, 2026; both were above their respective five- and ten-year medians.

What changed since last quarter

Revenue was $2.0 billion in Q2 FY2026, up 10.7% against Q1 FY2026 and 25.6% against Q2 FY2025. Management attributes year-over-year product-revenue growth in Q2 FY2026 to higher unit shipments, higher average selling prices and recent pricing actions; it also cites demand for higher-performing models, AI-infrastructure deployments, technology upgrades, upsell activity and new use cases.

Operating income was $689.3 million in Q2 FY2026, up from $580.0 million in Q1 FY2026 and $458.0 million in Q2 FY2025. Operating margin was 33.7% in Q2 FY2026, increasing by 2.3 percentage points against Q1 FY2026 and 5.6 percentage points against Q2 FY2025. Management attributes the year-over-year margin increase to revenue growth outpacing operating-expense growth, partly offset by lower gross margin. Gross margin was 80.2% in Q2 FY2026, down −0.4 percentage points against Q2 FY2025, which management attributes to a mix shift toward lower-margin product revenue.

Open questions

  • How will the mix between product and service revenue develop as demand changes?
  • To what extent will hardware component costs and memory-chip availability affect product margins?
  • How will investments in sales, product development, data centers and real estate affect operating expenses?
  • What will be the effect of changing trade policies and tariffs on product costs and customer demand?

Sources

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures come from the sources listed above and may contain errors; verify against the company's filings.