FTNT · 10-Q · 2026Q3 · Full report

Supply Chain Constraints

Fortinet, Inc. · 2026-10-30 · Importance 52 · Surprise 42

Fortinet said a global shortage of memory chips, driven by the rapid build-out of AI infrastructure, is constraining availability of a critical component used in certain products. The shortage may delay product production and delivery and increase sourcing costs. Fortinet is implementing price increases to mitigate higher hardware costs, but noted these may negatively affect demand and may not fully or promptly offset input-cost increases.

Key facts

• Fortinet was experiencing a global memory-chip shortage related to rapid AI-infrastructure build-out, which could delay production and delivery and increase sourcing costs for products containing memory chips. source
• Fortinet was implementing price increases to mitigate higher hardware costs from memory-chip shortages, but said the increases may reduce demand or fail to offset rising input costs in time, potentially compressing margins. source