Fortinet : Q1 2026 Earnings Presentation

Published: 2026-05-06 19:24:40 ET FTNT

Published on 05/06/2026 at 07:24 pm EDT - Modified on 05/06/2026 at 07:37 pm EDT

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Earnings Presentation

May 6, 2026

Q1'26 Key Financial Highlights

Y/Y Billings Growth

Y/Y Growth in Value

of Deals >$1M

Y/Y Total Revenue Growth

Operating Margin Fort(iSNoAnS-GEABAPill)ings Growth

Y/Y Product Revenue Growth

Adjusted Free Cash UnFifileodwSMAaSrgEinBillings

Growth

Outperforming the Market Across All Three Pillars

Secure Networking

Unified SASE

AI-Driven Security Operations

Firewall LAN WLAN

SD-WAN SSE Cloud Security

SOC

Data Security CTEM

Converge security and networking to protect every edge and device

$65B

'25-'29 CAGR: +7%

Unified networking & security providing consistent security, flexible deployment, and lower TCO

$79B

'25-'29 CAGR: +18%

The broadest and most integrated security operations platform

$166B

'25-'29 CAGR: +10%

Q1'26 Billings Growth: +32%

(66% of total billings)

Q1'26 Billings Growth: +31%

(25% of total billings)

Q1'26 Billings Growth: +23%

(9% of total billings)

Note: 2029 total addressable markets shown.

Gartner, December 2025 - Forecast: Enterprise Network Equipment, Worldwide, 2023-2029, 3Q25 Update

Gartner, December 2025 - Forecast: Information Security and Risk Management, Worldwide, 2023-2029, 3Q25 Update

Market Leader Across Major Security

and Networking Categories

Network Security

SD-WAN

SASE

Operational

Technology

SecOps

Security at Scale Built to Last Proven at Scale #1 in Innovation

Worldwide Scale,

Support

Top-Tier Public Company

$8.0B+

LTM Billings

GAAP

Profitable Every Year Since 2009 IPO

900K+

Lifetime

Customers

1,430

Patents

15,000+

Employees

110,000+

Partners

NASDAQ 100

S&P 500

Strong Long-Term Secular Tailwinds and Fortinet Differentiation

Durable growth opportunities driven by a heightened threat environment, including increased cyberwarfare

Expanding Attack Surfaces

AI, OT, Edge

Consolidation / Integration / Convergence

Reducing Complexity

Unified

SASE

Only vendor to natively integrate Next-

Gen Firewall SD-WAN and SASE on a single operating system

FortiOS allows expansion from SD-WAN to SASE in minutes

Owned infrastructure reduces total cost

of ownership to roughly 1/3 of peers

Larger TAM due to Sovereign SASE and hardware agents

AI-Driven Security

Operations

Broad portfolio of solutions

Focused on organic innovation and tightly integrated and embedded throughout FortiOS

20+ AI-driven solutions with 500+

issued and pending AI patents

Secure

Networking

#1 leader in firewall units shipped

FortiOS, our single operating system and management console that unifies networking and security

FortiASIC, which delivers 5x to 10x better performance than our competitors, while lowering total cost of ownership and energy consumption

AI is Accelerating the Convergence of Networking and Security

NETWORKING SECURITY

Vendor Consolidation Better Integration

SASE FIREWALL

Better Security

Posture

Router

Fortinet SingleOS

Firewall SSL

SD-WAN

FWaaS

Lower

TCO

Switch Wi-Fi

ASIC

FortiGuard

Inline MPS

Anti-

IPS

Attack

URL

Filtering

DLP

CASB

WAF

Simplified Operations

SD-WAN 5G

Quantum Safe

Malware

Sandbox

Surface

Security

SWG

ZTNA

Cloud Security

FortiGate 400G & 3500G Firewalls to Secure AI from the Data Center to the Edge

Deliver ASIC-accelerated performance, flexible connectivity, and hardware-enforced integrity

protections to eliminate tradeoffs between scale and security

FortiGate-400G

Driving Growth and Platform Expansion for the Enterprise Campus Environment

Secure Compute Rating (SCR)

FortiGate-3500G

Data Center Firewall Designed to Scale with AI-Driven Traffic

Specification

FortiGate

400G

Security Compute Rating

Competitors

Average

PAN

PA-3410

Cisco Firepower 3110

Check Point Quantum 9200

Juniper

SRX 1600

Specification

FortiGate 3500G

Security Compute Rating

Competitors Average

PAN PA-5540

Cisco Firepower 4125

Check Point 29100

Juniper SRX 4300

Firewall Throughput (Gbps)

164.0

5.7x

29.0

14.0

18.0

60.0

24.0

Firewall Throughput (Gbps)

595.0

3.4x

173.3

150.0

80.0

365.0

98.0

IPSec VPN Throughput (Gbps)

55.0

3.4x

16.1

6.6

11.0

28.6

18.0

IPSec VPN Throughput (Gbps)

163.0

2.2x

74.0

80.0

19.0

103.0

94.0

Threat Protection (Gbps)

105.0

1.4x

75.0

90.0

60.0

Threat Protection (Gbps)

13.0

1.7x

7.8

7.5

8.0

Concurrent Sessions

179M

6.9x

26M

39M

25M

30M

10M

Concurrent Sessions

28M

13.7x

1.4M

2.75M

Power Consumption

FortiGate 400G

Energy Efficiency

Competitors Average

PAN PA-3410

Cisco Firepower 3110

Check Point Quantum 9200

Juniper SRX 1600

Power Consumption

FortiGate 3500G

Security Compute Rating

Competitors Average

PAN PA-5540

Cisco Firepower 4125

Check Point 29100

Juniper SRX 4300

Watts/Gbps Firewall Throughput

1.7

6.3x

10.9

12.1

22.2

2.3

6.8

Watts/Gbps Firewall Throughput

1.6

6.1x

10.0

15.4

13.8

2.4

8.7

Watts/Gbps Ipsec VPN Throughput

5.1

19.0

25.8

36.4

4.9

9.0

Watts/Gbps Ipsec VPN Throughput

6.0

4.4x

26.0

28.8

57.9

8.3

9.0

25 Years of Innovation Using ONE Security OS

FortiOS 8.0 innovations in AI, SD-WAN, SASE, and OT

ARTIFICIAL INTELLIGENCE

FW/VPN

SECURE NETWORKING

NGFW/UTM

IPS

APP Control

UNIFIED SASE

SD-WAN SSE DLP CASB

SWG

FortiAI-SecureAI

FortiAI-Protect

FortiAI-

Assist

Antivirus

Sandbox Wireless Switch

Quantum Safe

FWaaS ZTNA

Cloud Security

WAF

Data Security

SOC

SECOPS

CTEM

2000 2025+

Fortinet Leading Network Security Market with Innovations in FortiOS

Growing faster than the network security market through Three I's-Innovation, Integration, and Improvement

TOTAL ADDRESSABLE

MARKET

$45B

$30B

$15B

$5B

Fortinet Advantages

Innovation: In-house UTM/ NGFW, Sandbox, WAF, OT Security, SD-WAN, SASE,

Quantum, & AI Security

Integration: Single OS with 30 functions, FortiOS 8.0

Improvement: In-house ASIC, Owned data center infrastructure for high performance, better security and lower cost

Total Addressable Market Multi Point Solution Single OS Integration

Firewall VPN

UTM / NGFW Sandbox WAF OT Security SD-WAN SASE and Quantum AI Security

IPS

Web Filtering

FortiOS 2.x

2000/2004

Evolution of Firewall, VPN, IPS, Web

Filtering, UTM

FortiOS 3.x

2005/2009

Identity-aware control

FortiOS 4.x

2009/2010

DLP, SSL Inspection

FortiOS 5.x

2012/2017

Security Fabric, Segmentation, NAC visibility, IoT, Cloud and Hybrid

FortiOS 6.x 2018/2020 NAC, IoT, WAF,

Segmentation, Deception, AI

FortiOS 7.x

2021/2023

ZTNA, SASE, Secure SD-WAN, 5G & LTE,

AI, Malware Sandboxing, CASB, ZTNA, SASE,

FortiOS 8.0

2026/20xx

AI Security, Sovereign SASE, Quantum-Safe Networking

1990s

2000 2005 2010 2020

AIOps

Q1 2026

Source: Gartner, IDC, Fortinet estimates

The Fortinet Journey: A Seamless Security Evolution

FIREWALL

SD-WAN

SASE

>50%

Market Global Firewall Units Shipped

>70%

Large Enterprise Penetration

18%

Large Enterprise Penetration

2000

2002

2005

2010

2015

2020

2022

2025

Stateful Firewall

UTM,

URL Filtering, IPS,

NGFW, SSL, Sandbox

SD-WAN, Mobile Malware,

ZTNA, 5G

DLP, RBI,

Sovereign

Anti-Malware

IPsec

OT Security,

CASB

SWG

UZTNA, DEM

SASE

FortiClient Unified Agent

NGFW

ASIC

LAN

Switch, Wireless, NAC

SD-WAN

Branch, Data Center, Cloud

SASE

SWG, SaaS,

Unified Agent, Sovereign

Universal ZTNA

Private Apps, CASB

FortiClient Unified Agent

Fortinet Delivers

Unified management

Consistent security

Vendor consolidation

Lower costs and higher performance

Note: Market global firewall units shipped data is from 650 Group.

The Most Deployed and Most Validated Secure SD-WAN Solution

More Secure and Reliable

Reduce Cost

Simplified Operations

How Fortinet

Delivers

Customer Benefit

Proven

Results

Only vendor to run NGFW

& SD-WAN integrated natively on a single OS & one appliance

Network Stability

Vendor Consolidation

Reduction in network disruption

65%

Only vendor with ASIC to Accelerate Secure SD-WAN functions with no license

Better Performance

Lowest Power Consumption

Lower TCO

ROI

300%

Only vendor to provide centralized policy management and autonomous architecture

Single Pane Management

Day Zero Provisioning at Scale

High Availability

Increase productivity of security & network teams

50%

Fastest Growing SASE Leader at Scale

Best Value & Security

Easy to Adopt

Broadest Solution

How Fortinet

Delivers

Customer Benefit

Proven

Results

~200 global cloud locations with 5M sqft facilities delivering the best security with the highest ROI

Lower TCO

Highest Availability

1/3

the Cost

Single OS across (1) firewall, (2) SD-WAN, and

(3) SASE

Expand from SD-WAN in minutes

3 to 1

Vendor Consolidation

3 Ways to Deploy

Cloud | On-prem | Sovereign

3 Choices of Cloud

Fortinet | Co-location | Public Cloud

3 Ways to Consume

SaaS | Hardware | EA

3 x 3

Broadest Most Flexible Offering

New SD-WAN and SASE All-in-One Service Bundles at Less Than 1/3 of the Individual Service Pricing

Upsell bundle for existing FGT customers 35% of FGT pricing

Consolidates 4 individual services into one service bundle (with % of FortiGate model price)

SD-WAN Underlay and Application Monitoring Service (20%)

Secure Private Access (SPA) (20%)

FortiGate Cloud Management and Overlay-as-a-Service (40%)

SPA with up to 100 FortiSASE

Standard licenses (35%)

New FGT customer bundle 50% of FGT pricing

Consolidates 5 individual services and FortiCare Premium into one service bundle (with % of FortiGate model price)

SD-WAN Underlay and Application Monitoring Service (20%)

Secure Private Access (SPA) (20%)

FortiGuard Attack Surface Security

Service (20%)

FortiGate Cloud Management and Overlay-as-a-Service (40%)

SPA with up to 100 FortiSASE Standard licenses (35%)

FortiCare Premium included (20%)

Business Outcomes

Simplified Operations

Extend to SASE in minutes

Accelerate troubleshooting

Improve security posture

Rapid interconnection

Deliver Higher Value

35% or 50% of the FortiGate price for all these services with FortiSASE starter licenses (included with all 60F and above models)

Less than 1/3 of the individual service price through SKU consolidation and reduced licensing complexity.

Owned Global Cloud Delivers Control, Performance, & Cost Benefits

Total Infrastructure 5M+

sq ft

Lower TCO

1/3

Cost savings for customers

High Availability 99.999%

FortiSASE SLA Target

Scale

~200 global cloud locations.

Flexibility to choose cloud provider.

Protecting AI Infrastructure, Applications, Data, and Users

Apps

AI Models

Infrastructure

Chips

Energy

FortiAI Protect and FortiGuard Services FortiSASE and FortiEndpoint

FortiAI Secure AI FortiAIGate

FortiGate, FortiSwitch

Fortinet ASIC - The only cybersecurity company with a custom ASIC -Strategic Partner with NVIDIA

OT Security - Fortinet is the only three-time Westlands Leader in OT Security, with OT billings up 70% y/y

The Most Integrated - AI Powering 20+ Solutions, with 500+ Patents*

FoFrotirAtiIA-AI-sAssisitst

FortiAnalyzer

FortiManager

FortiSASE*

FortiAIOps*

FortiADC* FortiWeb*

FortiNDR

FortiMonitor

FortiGate*

FortiDLP* FortiCNAPP*

FortiSIEM*

FortiSOAR*

FortiSandbox

FortiCASB FortiMail

LAN, SD-WAN

Optimization

Threat Hunting

Automated Alert Triage

Policy Creation

Auto Configuration

Incident Response Optimization

FortiAI Is Embedded Across the Security Fabric Platform

Broadest AI-Driven Security Operations

Shrink the

attacker window

Reduction in cyber

incidents

Respond at

machine speed

Faster Response

Maximize SOC

productivity

Improvement in output

FortiAI is embedded across the security fabric with 20+ products powering faster, smarter operations

Broadest AI-Driven Security Operations

Delivers deep integrations for

faster response

Built on owned infrastructure

to deliver better value

Improve productivity with

faster detection

FortiAI

Endpoint

Security

Data

Security

Network

Detection

Exposure

Management

SOC Platform

(SIEM, SOAR)

Cloud

Security

Mail

Security

Leading the Market with Quantum-Safe Solutions Since 2021

Protect Data Today

"Harvest now, decrypt later" means that quantum strategy is important today.

Interoperable

Standards are in transition, but Fortinet has NIST standardized solutions available already.

Transition Easily

Fortinet expertise and solutions to help you with your quantum migration gradually without complete overhaul.

Q1'26 OT Security Billings Grew Over 70% Driven by AI-Infrastructure

Secure Industrial Modernization

Deep OT Security

True IT/OT Convergence

How Fortinet

Delivers

Customer Benefit

Proven

Results

Broadest OT Platform spanning secure networking, zero trust, SOC and 3rd party integrations, built for OT

Rapid OT security maturity, ease of

deployment and scalability

Reduction in threats

93%

Most OT signatures to protect unpatched OT devices, unique automated virtual patching

Immediate protection for unpatched OT devices and risk mitigation with virtual patching

>2x

OT device signatures over the competition

Common FortiOS across IT and OT enabling seamless, efficient and secure operations across networks

Simplified user experience, deployment and management across the entire Purdue model

Reduction in TCO

$ in Millions

Strong Revenue Growth in the First Quarter

Americas

EMEA APAC

+20%

$1,850

$1,540

Q1'25

Q1'26

Total Revenue

Hardware

Software

+41%

$645

$459

Q1'25

Q1'26

Product Revenue

+11%

$1,205

$1,081

Q1'25

Q1'26

Service Revenue

Free Cash Flow

Real Estate Investments

57.6%

Margin

$1,065

54.5%

Margin

$839

Q1'25

Q1'26

Adj. Free Cash Flow

Strong Operating Margin & Record Adj. Free Cash Flow

81.9%

81.0%

Q1'25

Q1'26

Gross Margin

34.2%

35.8%

Q1'25

Q1'26

Operating Margin

$ in Millions

Note: All numbers are presented on a non-GAAP basis. Refer to the appendix of this presentation for a reconciliation of these Non-GAAP financial measures.

Product Revenue is a Leading Indicator of Future Service Revenue Growth

Product and Service Revenue Y/Y Growth

50%

40%

30%

20%

10%

-10%

Y/Y Product Revenue Growth Y/Y Service Revenue Growth

Fortinet Gained Market Share During COVID Supply Chain Disruption

Product Revenue Y/Y Growth

60%

50%

40%

30%

20%

10%

-10%

-20%

-30%

Fortinet Peer Group

Peer Group consists of CSCO, PANW, and CHKP (dollar weighted).

'Rule of 45' - Exceeded 6 Years in a Row

GAAP Profitable Every Year Since IPO

47%

48%

55%

54%

60%

48% 47% 50% 49%

40%

43%

45%

2020 2021 2022 2023 2024 2025 2026E

Fortinet defines the Rule of 45 as GAAP revenue Y/Y growth plus Non-GAAP Operating Margin.

33% GAAP Earnings Per Share CAGR Over the Last 5 Years

GAAP Earnings Per Share

$2.42

$0.58

2020 2021 2022 2023 2024 2025

Returned ~$10 Billion to Shareholders via Share Repurchases Since 2009 IPO

Cash Paid for Stock Repurchases

$ In millions

$2,290

$1,991

$1,501

$1,080

$973

$742

$446

$209

$39 $39

$60

$111

$141

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

YTD

Robust Share Buyback Program

~$10B

cash returned to shareholders since IPO

$0.8B

buyback authorization

remaining

300M+

shares repurchased since IPO

~40%

increase in EPS due to repurchases

Note: Data is as of April 30, 2026.

Strong Operational Focus, Disciplined Stock-Based Compensation and Margin Expansion Drives Higher Quality Earnings

GAAP to Non-GAAP Earnings Ratio - 2025

88%

83%

34%

Fortinet

Nasdaq 100

Peer Group

Fortinet's higher GAAP to Non-GAAP earnings ratio versus Nasdaq 100 and peers reflects our ability to drive consistent scale and efficiency across OpEx

Source: Fortinet, Morgan Stanley Research and Public Reports Peer Group: Weighted average of CHKP, PANW, ZS, CRWD, NET

Q2'26 and Full Year 2026 Guidance (Non-GAAP) (1)

Q2'26E

2026E

Billings (2)

$2.090B - $2.190B

$8.800B - $9.100B

Y/Y Mid-Pt Growth

20%

18%

Revenue (GAAP)

$1.830B - $1.930B

$7.710B - $7.870B

Y/Y Mid-Pt Growth

15%

Service Revenue (GAAP)

$5.090B - $5.150B

Y/Y Mid-Pt Growth

12%

Gross Margin (%) (3)

79.5% - 80.5%

79.0% - 81.0%

Operating Margin (%) (3)(4)

33.0% - 35.0%

33.0% - 36.0%

Net Income per Share (3)(4)(5)

$0.72 - $0.76

$3.10 - $3.16

Weighted Diluted Shares Outstanding

736M - 740M

743M - 749M

Guidance for non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, settlements of litigation related matters, gain on IP matters, gain on bargain purchase, gain from an equity method investment and a

tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

Billings is a non-GAAP measure that we define as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period.

Excludes stock-based compensation and amortization of acquired intangible assets.

Excludes charges in connection with litigation settlements and gains on IP matters.

Assumes an effective tax rate of 18% for 2026. We expect cash paid for income taxes to be within the range of $400 million to $450 million for 2026.

Additional Modeling Points

Q2'26E

2026E

Cash Paid for Income Taxes

$160M - $180M

$400M - $450M

Infrastructure Investments

$50M - $100M

$350M - $550M

Non-GAAP Tax Rate

18%

Historical Billings and ARR for Unified SASE and Security Operations

($ in millions)

Q1'24

Q2'24

Q3'24

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Annual Recurring Revenue (ARR)

Unified SASE

$940

$968

$1,107

$1,151

$1,183

$1,186

$1,224

$1,278

$1,326

Y/Y Growth

27%

22%

32%

28%

26%

23%

11%

12%

AI-Driven Security Operations

$319

$328

$363

$405

$416

$443

$473

$491

$508

Y/Y Growth

36%

32%

34%

32%

30%

35%

30%

21%

22%

Billings

Unified SASE

% of Total Billings

23%

25%

22%

25%

24%

26%

27%

25%

Y/Y Growth

10%

14%

21%

16%

21%

17%

16%

40%

31%

Security Operations

% of Total Billings

12%

10%

11%

Y/Y Growth

22%

32%

30%

19%

35%

39%

23%

2023

2024

2025

21%

24%

25%

15%

24%

10%

11%

19%

22%

Annual Recurring Revenue (ARR) is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any contract that expires during the

next 12 months is renewed at its existing value.

Reconciliation of Non-GAAP Results to GAAP Results

($ in millions)

Q1'25

Q1'26

Total revenue

$1,539.7

1,849.6

Add: Change in deferred revenue

57.5

235.7

Total billings

$1,597.2

$ 2,085.3

GAAP Cash Flow from Operations

$863.3

$ 1,077.1

Less: Purchases of Property and Equipment

(66.5)

(70.6)

Less: Proceeds from intellectual property matter

(14.0)

Free Cash Flow (1)

$782.8

$ 1,006.5

Add: Real Estate Related Add Backs

56.2

58.5

Adjusted Free Cash Flow (2)

$839.0

$ 1,065.0

Adjusted Free Cash Flow Margin

54.5%

57.6%

GAAP total gross profit

$1,246.6

$ 1,485.1

Stock-based compensation

7.0

7.7

Amortization of acquired intangible assets

6.7

5.8

Non-GAAP total gross profit

$1,260.3

$ 1,498.6

Non-GAAP gross margin

81.9%

81.0%

GAAP operating income

$453.8

$ 580.0

Stock-based compensation

66.9

73.2

Amortization of acquired intangible assets

11.8

10.3

Gain on IP matters

(6.3)

(1.4)

Non-GAAP operating income

$526.2

$ 662.1

Non-GAAP operating margin

34.2%

35.8%

Notes

Free Cash Flow is a non-GAAP measure that we define as net cash provided by operating activities minus purchases of property.

Adjusted Free Cash Flow is a non-GAAP measure that we define as Free Cash Flow plus cash payments associated with real estate related purchases.

Reconciliation of Non-GAAP Results to GAAP Results

($ in millions)

Q1'25

Q1'26

GAAP net income per share, diluted

$0.56

$0.72

Stock-based compensation

0.09

0.10

Amortization of acquired intangible assets

0.01

Gain on IP matters

(0.01)

Gain on bargain purchase

(0.05)

Tax adjustment

(0.01)

Gain from equity method investment

(0.01)

Non-GAAP net income per share, diluted

$0.58

$0.82

Disclaimer

Fortinet Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 23:03 UTC.