The third consecutive billings guidance raise for 2026 signals sustained demand momentum, particularly in product revenue (37% YoY). Watch Q4 billings guidance midpoint of $2.85B, which implies ~30% YoY growth, and monitor the Q4 earnings call for commentary on AI-related security demand and FortiGate G Series adoption.
Price Chart
Executive Summary
Fortinet reported Q3 2026 revenue of $2.078B, up 20% YoY and above the $2.06B consensus, with non-GAAP EPS of $0.91 versus the $0.86 consensus. The company raised its full-year 2026 revenue guidance to $8.125B-$8.215B (20% YoY growth) and increased its share repurchase authorization by $1.2B to a remaining $2B. Strong product revenue growth of 37% YoY and billings growth of 29% YoY drove the beat and guidance raise.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $2.078B, up 20% YoY from $1.725B, above the $2.06B consensus
- Non-GAAP EPS of $0.91, above the $0.86 consensus
- GAAP EPS of $0.86, up from $0.62 YoY
- Product revenue grew 37% YoY to $765M
- Service revenue grew 13% YoY to $1.313B
- Billings grew 29% YoY to $2.336B
- GAAP operating margin expanded to 34% from 32% YoY
- Non-GAAP operating margin expanded to 38% from 37% YoY
- Operating cash flow of $946M; free cash flow of $865M
- Full-year 2026 revenue guidance raised to $8.125B-$8.215B (20% YoY growth)
- Full-year 2026 non-GAAP EPS guidance raised to $3.54-$3.58
- Share repurchase authorization increased by $1.2B to $2B remaining
- Q4 2026 revenue guidance of $2.155B-$2.245B
Financial Impact
Revenue beat of ~$18M vs consensus; EPS beat of $0.05 vs consensus; full-year revenue guidance raised by ~$415M at midpoint vs prior guidance of $7.71B-$7.87B
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Product | $765.0M | +36.8% |
| Service | $1.3B | +12.7% |
Risk Factors
- GAAP gross margin contracted to 79.0% from 80.8% YoY, partly due to product mix shift
- Inventory increased to $591M from $400M at year-end 2025, potentially signaling supply chain buildup
- Non-GAAP gross margin guidance for Q4 of 78-80% suggests further margin pressure
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001262039-26-000024 |
| Document: ftnt-20261028.htm | 0001262039-26-000024 |
| Document: 0001262039-26-000024-index-headers.html | 0001262039-26-000024 |
| Document: 0001262039-26-000024-index.html | 0001262039-26-000024 |
| Document: 0001262039-26-000024.txt | 0001262039-26-000024 |
| 8-K Data (Synthetic) | 0001262039-26-000024 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 1d ago | 8-K | No price | awaiting T+1 | awaiting T+1 | No price |
Oct 28, 2026 1d ago | Press Release | $148.00 | awaiting T+1 | awaiting T+1 | $139.10 (−6.01%) |
Oct 23, 2026 6d ago | Institutional Cluster | $179.99 $183.33 | ▲ +1.86% | ▲ +1.15% | $139.10 (−22.72%) |
Oct 8, 2026 21d ago | ANALYST-UPGRADE | $189.10 $194.75 | ▲ +2.99% | ▲ +2.39% | $139.10 (−26.44%) |
Oct 2, 2026 27d ago | Press Release | $180.95 $184.13 | ▲ +1.76% | ▲ +1.08% | $139.10 (−23.13%) |
Aug 28, 2026 8w ago | Press Release | $166.00 $170.93 | ▲ +2.97% | ▲ +3.27% | $139.10 (−16.20%) |
Aug 17, 2026 10w ago | Press Release | $155.85 $158.01 | ▲ +1.39% | ▲ +2.06% | $139.10 (−10.75%) |
Aug 4, 2026 12w ago | Insider Cluster | $164.13 $160.11 | ▼ −2.45% | ▼ −2.29% | $139.10 (−15.25%) |
Jul 21, 2026 14w ago | ANALYST-UPGRADE | $158.10 $155.05 | ▼ −1.93% | ▼ −1.81% | $139.10 (−12.02%) |
Jul 17, 2026 14w ago | Court Ruling | $160.36 $158.10 | ▼ −1.41% | ▼ −2.24% | $139.10 (−13.26%) |
US Market Status
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