FTNT · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Fortinet, Inc. · 2026-10-30 · Importance 40 · Surprise 30 · No source text

Fortinet's effective tax rate was 16% in the third quarter of 2026, down from 20% in the same quarter of 2025. The decrease primarily reflected a larger FDDEI deduction and increased excess tax benefits from stock-based compensation. The 2026 quarter's tax provision was $119.5 million and included a $36.2 million FDDEI tax benefit and $25.5 million of excess stock-compensation tax benefits, compared with benefits of $11.1 million and $9.2 million, respectively, in 2025.

Key facts

• Fortinet's 2026 nine-month income tax provision included a $104.1 million tax benefit from the FDDEI deduction and $52.5 million of excess tax benefits from stock-based compensation expense. source
• Fortinet's U.S. federal, state, withholding, and foreign taxes for the three months ended September 30, 2026 totaled $181.2 million before the stated tax benefits. source
• Fortinet's three-month 2026 income-tax provision included a $36.2 million benefit from the FDDEI deduction and $25.5 million of excess tax benefits from stock-based compensation. source
• Fortinet's effective tax rate decrease was primarily due to an increased FDDEI deduction and increased excess tax benefits from stock-based compensation. source
• Fortinet's effective tax rate was 17% in the nine months ended September 30, 2026, compared with 18% in the same period in 2025. source
• Fortinet's effective tax rate was 16% for the three months ended September 30, 2026, compared with 20% in the same period of 2025. source

Impact estimates