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Jun 30
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%.
Fortinet
Fortinet
Fortinet Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com 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%.
- Diluted non-GAAP net income per share for Q3 2025 is projected to be $0.62 to $0.64, which is a slight decrease from the current quarter's $0.64.
- The guidance assumes a non-GAAP effective tax rate of 18%, which is higher than the 17% used in Q2 2024.
- The guidance for diluted non-GAAP net income per share for the full fiscal year 2025 ($2.47 to $2.53) implies a potential slowdown in growth compared to the first half's performance if not offset by stronger second half.
Revenue & Expenses
Visualization of income flow from segment revenue to net income