Fortinet Raises 2026 Outlook After Strong Q2 Beats

Management said surging product sales, higher billings and strong cash flow are driving the company to lift its full-year revenue and profit targets.

Overview

Fortinet reported second-quarter revenue of $2.05 billion and adjusted earnings per share of $0.90, beating Wall Street estimates in results released Wednesday, July 29.
The company raised its 2026 revenue guidance to $8.02 billion–$8.18 billion and raised adjusted EPS to $3.41–$3.47, and it set third-quarter targets of $2.01 billion–$2.10 billion in revenue and $0.83–$0.87 in adjusted EPS.
Product momentum powered the beat: product revenue jumped about 52% to $773 million and billings rose roughly 33% to $2.37 billion, signaling stronger hardware and contract activity as Fortinet shifts toward subscription deals.
Profitability and cash generation were strong, with GAAP operating margin near 34%, non-GAAP operating margin near 38%, operating cash flow about $1.04 billion and free cash flow about $966 million for the quarter.
Investors reacted positively, sending the stock up about 11% in after-hours trading, and management highlighted generative-AI integration and a partnership with Intel on security processors as moves to scale product development and ease supply constraints, which could accelerate recurring revenue growth.