Fortinet lifts outlook as quarterly revenue climbs to USD $1.63bn
Second quarter highlights
The company's billings for the quarter reached USD $1.78 billion, a 15 per cent increase compared to the corresponding period last year. Key businesses within Fortinet's portfolio showed notable performance, including unified secure access service edge (SASE) annual recurring revenue (ARR), which grew by 22 per cent year over year, and security operations ARR, which increased by 35 per cent.
Fortinet reported a generally accepted accounting principles (GAAP) operating margin of 28 per cent and a non-GAAP operating margin of 33 per cent for the quarter.
Executive commentary "Our strong second quarter performance and consistent track record of growth are a direct result of our continued innovation and customer-first strategy, enabling us to beat our billings guidance for the quarter and raise our full year billings outlook. We are the industry leader in network security, with the most deployed firewalls worldwide, a New-Generation SASE Firewall, and recognised leadership in the 2025 Gartner Magic QuadrantTM for SASE Platforms. This recognition, along with our strong business momentum, financial outlook, innovation, and leadership across five separate network security Magic QuadrantTM reports, underscores the strength of our AI-driven security approach and the strategic advantage of our unified FortiOS operating system."
Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet, reflected on the quarterly performance using the above statement.
Industry recognition and technology developments
Fortinet was recognised as a Leader in the 2025 Gartner Magic Quadrant for SASE Platforms and achieved the number one position in the Critical Capabilities for SASE Platforms report for the Secure Branch Network Modernisation use case. The company was also the only vendor mentioned in five distinct network security Magic Quadrant reports in 2025.
The company expanded its FortiCloud portfolio with three new natively integrated services: FortiIdentity, FortiDrive and FortiConnect. In addition to this, Fortinet was named the Overall Leader for the third consecutive year in the Westlands Advisory IT/OT Network Protection Platform Navigator 2025 report and was recognised as a Leader in the Gartner Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure for the second year running.
Fortinet was also named a Gartner Peer Insights Customers' Choice for SD-WAN for the sixth year in a row and for Endpoint Protection for the third year in succession. The company stated that it has crossed 1,400 issued patents worldwide, including over 500 issued and pending artificial intelligence-related patents, attributed to its research and development investments.
Financial guidance
Looking forward to the third quarter of 2025, Fortinet expects revenue in the range of USD $1.67 billion to USD $1.73 billion and billings between USD $1.76 billion and USD $1.84 billion. The company anticipates a non-GAAP gross margin of between 80.0 per cent and 81.0 per cent, with an operating margin range of 32.5 per cent to 33.5 per cent. Diluted non-GAAP net income per share is projected to be between USD $0.62 and USD $0.64, based on a non-GAAP effective tax rate of 18 per cent and a diluted share count of 772 million to 776 million shares.
For the entire fiscal year 2025, projected revenue is between USD $6.675 billion and USD $6.825 billion, with service revenue expected to total between USD $4.55 billion and USD $4.65 billion. Fortinet forecasts billings in the range of USD $7.325 billion to USD $7.475 billion. Non-GAAP gross margin is anticipated to be from 79.0 per cent to 81.0 per cent, and non-GAAP operating margin from 32.0 per cent to 33.5 per cent. Diluted non-GAAP net income per share guidance is set between USD $2.47 and USD $2.53, assuming a non-GAAP effective tax rate of 18 per cent and a diluted share count of 773 million to 777 million.
The company explained that its guidance on non-GAAP financial measures excludes certain items, including stock-based compensation and amortisation of acquired intangible assets, among others, due to the inherent uncertainty or unpredictability of these items.
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