Overview
- Fortinet shares jumped about 15% in premarket trading Thursday following Wednesday’s earnings beat and guidance hike, then touched an intraday high of $112.39 before closing up 20% at $107.97.
- Q1 revenue reached $1.85 billion and adjusted EPS came in at $0.82, topping Wall Street estimates on both counts and marking roughly 20% year‑over‑year growth.
- Product sales rose 41% to $645 million and total billings climbed 31% to $2.09 billion, which management tied to AI‑driven threats and the blending of networking with security; billings serve as an early read on future revenue.
- The company generated a record $1.01 billion in free cash flow and reported robust profitability, with non‑GAAP operating margin near 36% and high gross margins cited by analysts.
- Guidance moved higher with Q2 revenue projected at $1.83–$1.93 billion and full‑year targets raised to $7.71–$7.87 billion and $3.10–$3.16 in adjusted EPS, as several firms including BTIG ($125) and BofA ($130) lifted price targets while noting fierce SASE competition and Fortinet’s past volatility as key risks.