Highlights

  • Q3 2026 Revenue of $2.08 billion, up 20.5% year-over-year, with product revenue growing 37% to $765 million
  • Billings grew 29% year-over-year to $2.34 billion; large enterprise deals over $1 million grew 51%, reflecting strong demand
  • Non-GAAP EPS of $0.91, up 23% year-over-year, beating consensus; Operating Cash Flow of $946 million, free cash flow of $865 million
  • Full-year 2026 revenue guidance raised for the third time, now targeting $8.125–$8.215 billion

Fortinet (NASDAQ:FTNT) reported quarterly revenue and billings above its guidance midpoints. Total revenue of $2.08 billion and billings of $2.34 billion both exceeded guidance midpoints, driven by accelerating enterprise Demand for SASE (Secure Access Service Edge), operational technology security, and AI-driven threat intelligence across global markets.

Product Revenue Surge and Billings Strength

Product revenue grew 37% year-over-year to $765 million in Q3 2026, reflecting robust demand for Fortinet's next-generation firewall appliances and secure networking hardware as enterprises refresh their network security architectures. The 37% product revenue growth rate signals a hardware refresh cycle supported by SASE integration and OT security deployments, with large enterprises placing significant infrastructure orders tied to multi-year security transformation programmes.

Billings of $2.34 billion, up 29% year-over-year, serve as a leading indicator of future service revenue and reflect contracted but as-yet-unrecognised revenue from multi-year security service agreements. Large enterprise deals exceeding $1 million grew 51% year-over-year, underscoring Fortinet's success in competing for large-scale security transformation contracts against pure-play competitors.

SASE and OT Security Adoption

Fortinet's SASE platform — combining SD-WAN, cloud-native security, and Zero Trust Network Access — is gaining significant market traction as enterprises consolidate remote access, branch networking, and security into a single platform. The company's universal SASE architecture, which supports both cloud-delivered and on-premises deployment models, is resonating with large enterprises and service providers seeking flexibility without sacrificing security performance.

Operational Technology (OT) security remains a high-growth segment for Fortinet, as industrial enterprises accelerate the digital transformation of manufacturing, energy, and critical infrastructure facilities. Fortinet's OT-specific security solutions provide purpose-built protection for industrial control systems, SCADA environments, and connected industrial IoT devices.

Financial Strength and Capital Returns

Fortinet generated operating cash flow of $946 million and free cash flow of $865 million in Q3 2026, reflecting the significant cash-generating power of its subscription-heavy Business model. The Board of Directors authorised an additional $1.2 billion in share repurchases, bringing total buyback authorisation to a meaningful level and reflecting management's confidence in the company's long-term value creation trajectory.

Updated FY2026 Guidance

Fortinet raised its full-year 2026 revenue guidance to $8.125–$8.215 billion and billings guidance to $9.568–$9.718 billion. Service revenue is projected in the range of $5.150–$5.170 billion. For Q4 2026, the company guided revenue of $2.155–$2.245 billion with non-GAAP EPS of $0.93–$0.95.