Fortinet (FTNT) FTNT Q4 Financial Results Summary
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Fortinet (FTNT) Q4 2025 Financial Results Summary
Release Date: February 5, 2026
Fortinet® (Nasdaq: FTNT), a global leader in cybersecurity, reported strong financial results for the fourth quarter and full year ending December 31, 2025. The following highlights summarize the financial performance:
Fourth Quarter 2025 Highlights
- Revenue Growth:
- Total revenue increased 15% year-over-year to $1.91 billion.
- Product revenue rose by 20% year-over-year to $691 million.
- Billings:
- Total billings grew by 18% to $2.37 billion.
- Unified SASE (Secure Access Service Edge) billings showed strong growth of 40%.
- Operating Margin:
- GAAP operating margin stood at 33%.
- Non-GAAP operating margin improved to 37%.
- Profitability:
- GAAP net income was $506 million, a slight decrease of 4% compared to $526 million in Q4 2024.
- Diluted GAAP net income per share was $0.68, compared to $0.68 a year prior.
Full Year 2025 Highlights
- Total Revenue:
- Increased by 14% year-over-year to $6.80 billion.
- Product revenue grew by 16% year-over-year to $2.22 billion.
- Billings:
- Full-year billings rose by 16% to $7.55 billion.
- Unified SASE & SecOps billings increased by 24%.
- High Profits:
- Free cash flow for the year was $2.21 billion.
- GAAP operating margin was 31% and non-GAAP operating margin reached 35%.
- Rule of 45:
- Fortinet exceeded the “Rule of 45” for the sixth consecutive year.
Business Highlights
- Strategic Partnerships:
- An integrated solution with NVIDIA was announced, enhancing infrastructure performance for AI Factory users with firewalling and policy controls directly in the infrastructure.
- Named a Gartner Peer Insights™ Customers’ Choice for Security Service Edge for the third consecutive year.
- Recognition:
- Inaugural Google Unified Security Recommended partner status for network protection.
- Awarded the 2025 Red Dot Product Design Award for the FortiGate Rugged series.
Share Repurchase Program
- Fortinet’s Board of Directors authorized an extension of its share repurchase program by $1.0 billion. The total repurchase authorization amounts to $10.25 billion, with approximately $1.38 billion available as of February 4, 2026.
Guidance for First Quarter 2026
- Expected Revenue: $1.700 billion to $1.760 billion.
- Expected Billings: $1.770 billion to $1.870 billion.
- Non-GAAP Operating Margin: Estimated to be between 30.0% and 32.0%.
- Diluted Non-GAAP Net Income per Share: Expected range of $0.59 to $0.63.
Financial Metrics Summary
Quarterly Metrics:
- Revenue Growth:
- Total revenue: +15% YoY
- Product revenue: +20% YoY
- Net Income:
- Decrease of 4% from $526 million to $506 million.
- Margins:
- GAAP Operating Margin: 33%
- Non-GAAP Operating Margin: 37%
Annual Metrics:
- Revenue Growth:
- Total Revenue: +14% YoY
- Product Revenue: +16% YoY
- Billings:
- Total Billings: +16% YoY
- Profitability:
- Free Cash Flow: $2.21 billion
Fortinet continues to demonstrate growth and strategic advancements in its cybersecurity solutions while managing robust financial performance, as reflected in its latest quarterly and annual results.
| Three Months Ended | Year Ended | |||
|---|---|---|---|---|
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |
| REVENUE: | ||||
| Product | 691.1 | 2,218.4 | ||
| Service | 1,213.9 | 4,581.2 | ||
| Total revenue | 1,905.0 | 6,799.6 | ||
| COST OF REVENUE: | ||||
| Product | 228.9 | 725.4 | ||
| Service | 160.3 | 603.5 | ||
| Total cost of revenue | 389.2 | 1,328.9 | ||
| GROSS PROFIT: | ||||
| Product | 462.2 | 1,493.0 | ||
| Service | 1,053.6 | 3,977.7 | ||
| Total gross profit | 1,515.8 | 5,470.7 | ||
| OPERATING EXPENSES: | ||||
| Research and development | 205.0 | 815.5 | ||
| Sales and marketing | 629.3 | 2,347.5 | ||
| General and administrative | 57.3 | 233.4 | ||
| Gain on intellectual property matters | -1.4 | -10.4 | ||
| Total operating expenses | 890.2 | 3,386.0 | ||
| OPERATING INCOME | 625.6 | 2,084.7 | ||
| INTEREST INCOME | 32.3 | 162.3 | ||
| INTEREST EXPENSE | -4.4 | -20.1 | ||
| OTHER INCOME (EXPENSE)—NET | -2.7 | 55.3 | ||
| INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 650.8 | 2,282.2 | ||
| PROVISION FOR INCOME TAXES | 144.8 | 439.1 | ||
| GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS | — | 10.3 | ||
| NET INCOME | 506.0 | 1,853.4 | ||
| Net income per share: | ||||
| Basic | 0.68 | 2.45 | ||
| Diluted | 0.68 | 2.42 | ||
| Weighted-average shares outstanding: | ||||
| Basic | 743.1 | 758.0 | ||
| Diluted | 748.0 | 764.6 |
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | 2,495.3 | 2,875.9 |
| Short-term investments | 1,087.2 | 1,190.6 |
| Accounts receivable—net | 1,691.2 | 1,463.4 |
| Inventory | 399.5 | 315.5 |
| Prepaid expenses and other current assets | 227.0 | 126.1 |
| Total current assets | 5,900.2 | 5,971.5 |
| LONG-TERM INVESTMENTS | 339.7 | — |
| PROPERTY AND EQUIPMENT—NET | 1,619.0 | 1,349.5 |
| DEFERRED CONTRACT COSTS | 735.5 | 622.9 |
| DEFERRED TAX ASSETS | 1,314.9 | 1,335.6 |
| GOODWILL AND OTHER INTANGIBLE ASSETS—NET | 354.7 | 350.4 |
| OTHER ASSETS | 125.2 | 133.2 |
| TOTAL ASSETS | 10,389.2 | 9,763.1 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | 230.8 | 190.9 |
| Accrued liabilities | 354.6 | 337.9 |
| Accrued payroll and compensation | 312.9 | 255.7 |
| Current portion of long-term debt | 499.7 | — |
| Deferred revenue | 3,636.0 | 3,276.2 |
| Total current liabilities | 5,034.0 | 4,060.7 |
| DEFERRED REVENUE | 3,479.8 | 3,084.7 |
| LONG-TERM DEBT | 496.6 | 994.3 |
| OTHER LIABILITIES | 141.3 | 129.6 |
| Total liabilities | 9,151.7 | 8,269.3 |
| COMMITMENTS AND CONTINGENCIES | ||
| STOCKHOLDERS’ EQUITY: | ||
| Common stock | 0.7 | 0.8 |
| Additional paid-in capital | 1,770.1 | 1,636.2 |
| Accumulated other comprehensive loss | -25.4 | -26.1 |
| Accumulated deficit | -507.9 | -117.1 |
| Total stockholders’ equity | 1,237.5 | 1,493.8 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 10,389.2 | 9,763.1 |