FTNT · 10-Q · 2026Q3 · Full report

Operating Income and Margins

Fortinet, Inc. · 2026-10-30 · Importance 59 · Surprise 48 · In source text

Third-quarter operating income increased 29% to $704.3 million, while operating margin expanded 2.2 percentage points to 33.9%. For the first nine months, operating income increased 35% to $1.97 billion and operating margin rose 3.2 percentage points to 33.0%. Quarterly margin expansion reflected revenue growth outpacing expense growth, with lower sales and marketing, R&D, and G&A expense ratios contributing 1.8, 1.5, and 0.7 percentage points, respectively, partly offset by a 1.8-point decline in gross margin.

Key facts

• Fortinet generated operating income of $1.97 billion in the nine months ended September 30, 2026, up $514.5 million, or 35%, from $1.46 billion in the same period in 2025. source
• Fortinet operating income was $704.3 million for the three months and $1.97 billion for the nine months ended September 30, 2026, up 29% and 35%, respectively. source
• Fortinet generated $704.3 million in operating income in the three months ended September 30, 2026, up $157.0 million, or 29%, from $547.3 million a year earlier. source
• Fortinet operating margin was 33.9% for the three months and 33.0% for the nine months ended September 30, 2026, up 2.2 and 3.2 percentage points, respectively. source
• Fortinet operating margin increased 2.2 and 3.2 percentage points in the three and nine months ended September 30, 2026, driven by revenue growth outpacing expense growth, partly offset by lower total gross margin. source
• Fortinet's three-month operating margin rose to 33.9% from 31.7%, with a 2.2-percentage-point increase driven principally by lower sales and marketing, research and development, and general and administrative expenses as percentages of revenue. source
• Fortinet operating margin was 33.0% in the nine months ended September 30, 2026, compared with 29.8% in the same period in 2025, an increase of 3.2 percentage points. source
• Fortinet operating margin improvement included decreases of 2.1, 1.6, and 0.6 percentage points in sales and marketing, research and development, and general and administrative expenses as percentages of revenue, respectively. source

Impact estimates