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Sep 30, 2025
Fortinet Q3 2025 Earnings Report
Fortinet reported strong third quarter results with record operating margins and significant growth in product revenue and billings.
Key Takeaways
Fortinet delivered solid Q3 results with revenue reaching $1.7249 billion and a net income of $473.9 million. The company achieved record GAAP and non-GAAP operating margins, driven by strong demand for its integrated cybersecurity solutions, especially FortiSASE.
Revenue grew to $1.7249 billion, driven by an 18% increase in product sales.
Net income for the quarter was $473.9 million with a diluted EPS of $0.62.
Non-GAAP operating margin hit a record 36.9%.
FortiSASE billings more than doubled YoY, reflecting rapid adoption of its SASE solutions.
Revenue by Segment
Forward Guidance
Fortinet expects continued growth in Q4 2025, projecting increased revenue, billings, and strong profitability metrics.
Positive Outlook
- Q4 revenue expected between $1.825B and $1.885B.
- Q4 billings projected between $2.185B and $2.285B.
- Q4 Non-GAAP gross margin expected between 79.0% and 80.0%.
- Q4 Non-GAAP EPS expected between $0.73 and $0.75.
- Full-year revenue guided to $6.720B to $6.780B.
Challenges Ahead
- Operating margin expected to decline slightly from Q3 record levels.
- High exposure to macroeconomic and geopolitical risks, including Ukraine conflict.
- Inventory levels increased significantly YoY.
- Cash and cash equivalents decreased by nearly $880M from the beginning of the year.
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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