Fortinet stock lifts 2026 outlook after Q3 revenue jump

Published on 11/09/2026 at 14:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Fortinet stock raised its 2026 revenue outlook after a strong third quarter. Billings grew faster than revenue, while product sales gained 37%.

Fortinet raises its 2026 outlook

Third-quarter revenue increased 20 percent year over year, while billings grew 29 percent.
Product revenue rose 37 percent to 765 million US dollars and operating margins remained high.
Fortinet expanded its share repurchase authorization by 1.2 billion US dollars.

Fortinet Inc., US34959E1091, Illustration mit AI erstellt.

Fortinet reported third-quarter revenue of 2.08 billion US dollars and raised its full-year 2026 revenue outlook, according to SecurityBrief Asia. The cybersecurity company said billings rose 29 percent to 2.34 billion US dollars, while product revenue climbed 37 percent to 765 million US dollars.

Revenue growth and stronger billings

The quarter showed broad expansion across Fortinet's portfolio. Revenue increased 20 percent from a year earlier, while the faster growth in billings points to continued demand for contracts that will be recognized as revenue over time. Product sales also outpaced total revenue growth, giving the hardware and platform business a larger role in the quarterly mix.

Fortinet reported a GAAP operating margin of 34 percent and a non-GAAP operating margin of 38 percent. GAAP earnings per share were 0.86 US dollars, compared with 0.91 US dollars on a non-GAAP basis. The distinction matters for investors because the adjusted figure excludes items not included in the company's non-GAAP presentation.

Higher targets for the final quarter

For the fourth quarter, Fortinet expects revenue between 2.155 billion and 2.245 billion US dollars. The company projected billings of 2.775 billion to 2.925 billion US dollars and non-GAAP diluted earnings per share of 0.93 to 0.95 US dollars.

Fortinet now expects full-year revenue of 8.125 billion to 8.215 billion US dollars, implying growth of about 20 percent. Full-year billings are forecast at 9.568 billion to 9.718 billion US dollars. The company also expects full-year non-GAAP diluted earnings per share of 3.54 to 3.58 US dollars, based on a diluted share count of 741 million to 743 million.

AI security remains a strategic focus

Management tied the quarter's performance to broad-based demand and Fortinet's position in security for artificial intelligence infrastructure. Chief Executive Officer Ken Xie said the company had raised its 2026 billings outlook for the third time this year. He also described network security as a foundation for protecting new AI attack surfaces.

Recent portfolio initiatives include the FortiGuard Inline AI Security Service and FortiLink SASE. Fortinet has also announced work with Nvidia, Oracle and Microsoft on AI security, cloud adoption and sovereign technology requirements. These moves broaden the addressable market, but execution against the new guidance remains the central test for the share price.

Cash flow and capital returns

Operating cash flow reached 946 million US dollars and free cash flow totaled 865 million US dollars in the quarter. Fortinet increased its share repurchase authorization by 1.2 billion US dollars, leaving 2 billion US dollars available under the program. The combination of cash generation and buyback capacity gives management flexibility while it continues to invest in security products.

Fortinet stock traded at 106.03 euros on Lang & Schwarz at 14:15 CET on Monday, November 9, 2026. Investors will focus next on delivery against the fourth-quarter revenue, billings and earnings ranges, as well as whether margins remain near the levels reported for the latest quarter.