Overview

* Fortinet ( FTNT ) Q3 revenue grows 14% yr/yr, beating analyst expectations

* Company achieved record Q3 non-GAAP operating margin of 37%

* Product revenue increased 18% yr/yr, driven by demand for solutions

Outlook

* Fortinet expects Q4 2025 revenue between $1.825 bln and $1.885 bln

* Company forecasts Q4 2025 billings between $2.185 bln and $2.285 bln

* Fortinet ( FTNT ) anticipates FY 2025 revenue between $6.720 bln and $6.780 bln

Result Drivers

* SASE GROWTH - FortiSASE emerged as the fastest-growing SASE solution, with Q3 billings increasing over 100% yr/yr due to easy migration for existing SD-WAN customers

* AI SOLUTIONS - Rapid adoption of AI add-on solutions supported by R&D investment and over 500 AI patents

* PRODUCT REVENUE - Product revenue grew 18% yr/yr, driven by demand for Fortinet's ( FTNT ) integrated cybersecurity solutions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.72 $1.70

Revenue bln bln (37

Analysts

)

Q3 37.00%

Adjusted

Operatin

g Margin

Q3 $1.81

Billings bln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 30 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Fortinet Inc ( FTNT ) is $88.26, about 3.4% above its November 4 closing price of $85.22

* The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)