SUNNYVALE, Calif., May 7, 2026, 04:04 PDT
Fortinet jumped 12.3% ahead of the bell Thursday, after the cybersecurity name came through with first-quarter numbers that beat Wall Street, and dialed up its 2026 forecast on stronger demand for network-security offerings. Adjusted earnings landed at 82 cents per share on $1.85 billion in revenue, topping consensus calls for 62 cents and $1.73 billion.
This shift is significant: investors want evidence that AI is driving up security spending, not cannibalizing it. Fortinet’s latest quarter highlighted stronger demand for speedier firewalls, network segmentation, and security products built for AI infrastructure—spaces where customers are confronting heavier traffic loads and a surge in sophisticated threats.
Corporate technology budgets are facing heightened scrutiny. That puts billings in focus—a solid billings figure offers a more immediate view of demand than revenue does, since billings include both recognized revenue and shifts in deferred revenue. Essentially, it reflects what customers have been invoiced, even if it hasn’t all shown up as revenue yet.
Fortinet reported a 20% jump in revenue year-over-year. Product revenue surged 41% to $645 million. Billings were up 31%, landing at $2.09 billion. GAAP earnings per share rose 29% to 72 cents, with non-GAAP EPS climbing 41% to 82 cents. Free cash flow totaled $1.01 billion, according to the company.
Fortinet is projecting June-quarter revenue between $1.83 billion and $1.93 billion, with adjusted EPS landing in a 72-to-76-cent range. That $1.88 billion midpoint tops the $1.82 billion analyst consensus referenced by Investing.com.
The company has raised its full-year 2026 outlook, projecting revenue between $7.71 billion and $7.87 billion, billings in the $8.8 billion to $9.1 billion range, and adjusted EPS of $3.10 to $3.16. At the midpoint, revenue comes in at roughly $7.79 billion—well ahead of the $7.6 billion consensus mentioned in market reports.
Chief Executive Ken Xie pointed to “strong execution and broad-based demand” as reasons for the quarter topping the high end of guidance. Xie also flagged that billings growth was fueled by the merging of networking and security, with AI further ramping up threats. fortinet.com
Secure networking billings jumped 32%, according to Chief Financial Officer Christiane Ohlgart. OT security—covering industrial and critical infrastructure—soared over 70%. Unified SASE, Fortinet’s cloud-based access security business, logged 31% billings growth. Ohlgart added that FortiSASE has now been purchased by 18% of large enterprise clients, a rise of more than 45%, based on her prepared remarks.
Rivals like Palo Alto Networks and Check Point Software—named in Fortinet’s firewall peer group—will be tracking the results closely. Fortinet is pitching its blend of hardware, software, and services as a way to win more spending, as big customers merge security vendors and prep networks for AI.
BofA Securities bumped its Fortinet price target up to $130 from $120 while sticking with a Buy. The firm highlighted 31% billings growth alongside 20% revenue growth, flagging momentum in secure networking and unified SASE demand. Analysts at BofA also underscored Fortinet’s advantage from ASICs—custom chips that outperform general-purpose processors in security work.
Jefferies’ Joseph Gallo and his team struck a cautious note on one front: the rosier 2026 forecast might spark talk of “pull forward benefit,” where buyers speed up purchases. Still, they pointed out that faster service billings, ramped-up AI data-center demand, and hikes meant to cover pricier memory should all bolster growth. That newest price bump, though, likely won’t show much impact until Q3. Investing.com
The risk is clear: if Fortinet’s component costs climb more quickly than it can adjust pricing, or if customers delay major network upgrades, hitting guidance will be tougher. The company also pointed to a range of other headwinds—reduced IT spending, supply-chain snags, fiercer competition, drawn-out sales cycles, margin pressure, and tech shifts linked to AI.
Right now, the market’s takeaway is straightforward. Fortinet surprised investors with a tidier growth outlook: billings climbed, product revenue picked up, and the company rolled out a higher 2026 revenue goal. It’s all anchored to a theme customers are already investing in — locking down networks that keep getting faster, more spread out, and tougher to protect.
