Fortinet Reports Strong Third Quarter 2026 Financial Results
Fortinet (NASDAQ: FTNT) reported third-quarter 2026 revenue of US$2.078 billion, up 20 per cent year-on-year. Product revenue increased 37 per cent to US$765 million. The Fortinet Q3 2026 results, covering the quarter ended September 30, also showed non-GAAP billings rising 29 per cent to US$2.336 billion.
Meanwhile, service revenue reached US$1.313 billion, up 13 per cent. Non-GAAP operating margin increased to 38.2 per cent from 36.9 per cent a year earlier. GAAP diluted earnings per share also rose from US$0.62 to US$0.86. Following these results, Fortinet raised its full-year 2026 billings guidance for the third time this year.
Ken Xie, Founder, Chairman and Chief Executive Officer, Fortinet, said, “We are very pleased with our excellent third quarter results, which reflect strong execution and broad-based demand across our entire portfolio, allowing us to raise our 2026 billings guidance for the third time this year. Our strong momentum is driven by our continued leadership in the AI era. As AI introduces entirely new attack surfaces, Network Security remains the critical foundation of AI Security. Powered by our single FortiOS operating system and proprietary FortiASIC technology, our unified platform approach secures critical AI infrastructure while delivering industry-leading performance and a significantly lower total cost of ownership.”
Fortinet Q3 2026 Results Show Growth Across Security Products
Fortinet reported 51 per cent year-on-year growth in the value of deals exceeding US$1 million. Additionally, adjusted free cash flow reached US$912.2 million, representing a non-GAAP margin of 43.9 per cent. This compares with 37.4 per cent a year earlier.
The company’s earnings presentation also showed that operational technology (OT) security billings grew nearly 40 per cent year-on-year, driven by AI infrastructure. Meanwhile, Unified SASE annual recurring revenue reached US$1.444 billion, up 18 per cent. AI-driven security operations annual recurring revenue also increased 16 per cent to US$551 million.
AI Security and Networking Announcements
Alongside its financial results, Fortinet highlighted several product announcements and partnerships. The new FortiGuard Inline AI Security Service provides AI-specific inspection and security controls through existing FortiGate deployments. Meanwhile, the FortiLink SASE Service extends cloud-delivered security to small branch offices and distributed locations without requiring dedicated on-site firewalls.
Fortinet also announced developments involving NVIDIA, Oracle and Microsoft. NVIDIA selected Fortinet as a top OpenShell Reference Architecture Partner to Secure AI. In addition, Oracle and Fortinet announced a collaboration combining OCI Enterprise AI with FortiAIGate to secure and govern AI applications and agents. Microsoft selected Fortinet for its Sovereign Partner Ecosystem, focusing on sovereign AI security solutions for highly regulated industries.
Fortinet also reported recognition as a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall. Furthermore, Gartner positioned the company highest for Ability to Execute for the second consecutive year.
Fortinet Raises Full-Year 2026 Guidance
Following its third-quarter performance, Fortinet raised its full-year 2026 billings guidance. The company now expects revenue between US$8.125 billion and US$8.215 billion, with billings between US$9.568 billion and US$9.718 billion. Additionally, Fortinet forecasts service revenue of US$5.150 billion to US$5.170 billion.
| Financial guidance | Q4 2026 | Full-year 2026 |
|---|---|---|
| Revenue (GAAP) | US$2.155B–US$2.245B | US$8.125B–US$8.215B |
| Billings (non-GAAP) | US$2.775B–US$2.925B | US$9.568B–US$9.718B |
| Non-GAAP gross margin | 78.0%–80.0% | 79.7%–80.3% |
| Non-GAAP operating margin | 35.5%–37.5% | 36.5%–37.5% |
| Non-GAAP diluted EPS | US$0.93–US$0.95 | US$3.54–US$3.58 |
Fortinet expects a non-GAAP effective tax rate of 18 per cent for 2026. However, these financial forecasts are forward-looking, and actual results may differ materially from the estimates. The company has not reconciled its non-GAAP guidance to corresponding GAAP measures because it cannot reasonably predict certain adjustments.
Upcoming Investor Conferences
Fortinet management plans to participate in three investor conferences during the fourth quarter. These include the BMO Technology and Innovation Leaders Conference on November 12, the UBS Global Technology and AI Conference on December 2, and the Barclays Global Technology Conference on December 9, 2026.
The company expects to make its conference presentations available through its investor-relations website. However, the schedule remains subject to change.
For conference information and webcast registration, visit Fortinet Investor Presentations and Events.
Sources
- Fortinet, Q3 2026 Earnings Presentation, October 28, 2026, pages 3, 16–18, 24, 27–28.
- Fortinet, Third Quarter 2026 Financial Results announcement.
- Gartner, Magic Quadrant for Hybrid Mesh Firewall, Rajpreet Kaur, Adam Hils and Odie Adesina, September 7, 2026.
Financial disclosure: GAAP and non-GAAP results appear separately. Billings, adjusted free cash flow, and certain margin and earnings measures use non-GAAP accounting. Fortinet provides reconciliations in the appendix of its earnings presentation.