Fortinet Inc. (NASDAQ: FTNT) experienced a positive market reaction in after-hours trading on Thursday following the release of its fourth-quarter earnings report. Investors responded favorably to the company's financial results, which showcased a solid performance surpassing expectations across key metrics.
For the quarter, Fortinet posted an adjusted earnings per share (EPS) of 81 cents, outperforming the consensus estimate of 74 cents compiled by Benzinga Pro. This better-than-expected profitability underscored Fortinet's efficient operations and effective cost management in the period.
Revenue for the quarter reached $1.91 billion, which also came in above analyst estimates that projected $1.86 billion. This increase reflects strong sales momentum and expanded market demand for Fortinet's cybersecurity offerings.
Breaking down these results further, product revenue experienced a notable 20% year-over-year growth, climbing to $691 million. This rise indicates increasing adoption of Fortinet’s core cybersecurity products and a successful execution of its product strategy.
Billings, a key indicator of future revenue streams, advanced 18% year-over-year to total $2.37 billion during the quarter. This growth signals robust customer demand and contractual commitments, providing a positive outlook for subsequent quarters.
Additionally, the unified Secure Access Service Edge (SASE) billings surged 40%, demonstrating the company's expanding footprint in integrated security services that combine networking and security capabilities from the cloud. This segment's rapid growth aligns with industry trends favoring cloud-delivered security solutions.
Fortinet maintained a strong operational efficiency with a non-GAAP operating margin of 37%, reflecting the company’s ability to manage costs effectively while scaling its business.
CEO Ken Xie commented on the results stating, "We are pleased with our strong finish to the year, highlighted by an excellent fourth quarter driven by broad-based demand across our portfolio, which drove billings above the high end of our guidance." This statement emphasizes the company's balanced growth across its product lines and service offerings.
Looking ahead, Fortinet provided guidance for fiscal year 2026, anticipating adjusted EPS in the range of $2.94 to $3.00, slightly above the consensus estimate of $2.94. Correspondingly, revenue is projected between $7.5 billion and $7.7 billion, surpassing the analyst forecast of $7.51 billion. These projections suggest confidence in continued growth momentum and the ability to capture market opportunities moving forward.
Following the earnings announcement, Fortinet’s stock price rose 2.69% to $81.62 in extended trading, reflecting investor approval of the results and guidance.
Overall, Fortinet's fourth-quarter performance underscores the company’s solid execution amid a competitive cybersecurity landscape, supported by strong product sales, expanding billings, and notable growth in emerging service segments like unified SASE.