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Jun 30, 2025
Fortinet Q2 2025 Earnings Report
Fortinet reported strong second quarter 2025 financial results, exceeding billings guidance and raising its full-year outlook.
Key Takeaways
Fortinet delivered a robust second quarter in 2025, with revenue growing 14% year-over-year to $1.63 billion and billings increasing by 15% to $1.78 billion. The company demonstrated strong performance in its Unified SASE ARR and Security Operations ARR, which grew 22% and 35% respectively. Fortinet also maintained healthy profitability with a GAAP operating margin of 28% and a non-GAAP operating margin of 33%.
Revenue increased by 14% year-over-year, reaching $1.63 billion in Q2 2025.
Billings grew by 15% year-over-year to $1.78 billion, surpassing guidance.
Unified SASE ARR and Security Operations ARR showed significant growth of 22% and 35% respectively.
The company achieved strong profitability with a GAAP operating margin of 28% and a non-GAAP operating margin of 33%.
Revenue by Segment
Forward Guidance
Fortinet provided optimistic guidance for Q3 2025 and the full fiscal year 2025, raising its full-year billings guidance midpoint by $100 million, reflecting continued confidence in its market position and growth strategy.
Positive Outlook
- Q3 2025 revenue expected between $1.670 billion and $1.730 billion.
- Q3 2025 billings expected between $1.760 billion and $1.840 billion.
- Full fiscal year 2025 revenue expected between $6.675 billion and $6.825 billion.
- Full fiscal year 2025 service revenue expected between $4.550 billion and $4.650 billion.
- Full fiscal year 2025 billings expected between $7.325 billion and $7.475 billion.
Challenges Ahead
- Non-GAAP gross margin for Q3 2025 is projected to be 80.0% to 81.0%, which is slightly lower than the previous quarter's non-GAAP gross profit percentage (not explicitly stated but implied by operating margin).
- Non-GAAP operating margin for Q3 2025 is projected to be 32.5% to 33.5%, a slight decrease from the current quarter's 33.1%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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