FTNT · 10-Q · 2026Q3 · Full report
Operating Expense Trends
Fortinet, Inc. · 2026-10-30 · Importance 35 · Surprise 22 · In source text
Sales and marketing expense increased 14% to $665.0 million in the third quarter of 2026, primarily because personnel-related costs rose $71.4 million; travel expense increased $4.5 million and marketing programs increased $3.8 million. Research and development expense rose 5% to $213.4 million, including a $9.4 million increase in product development costs. Operating expenses as a percentage of revenue decreased 3.9 percentage points in the quarter and 4.2 points for the first nine months, as revenue growth outpaced personnel-cost growth; headcount was 15,540 at September 30, 2026, up 3% year over year.
Key facts
- Fortinet sales and marketing expenses increased $252.2 million, or 15%, in the nine months ended September 30, 2026 compared with the same period in 2025. source
- Fortinet sales and marketing expense growth included a $217.9 million increase in personnel-related costs and a $15.4 million increase in marketing programs. source
- Fortinet sales and marketing expenses increased $81.5 million, or 14%, in the three months ended September 30, 2026, primarily due to $71.4 million more in personnel-related costs. source
- Fortinet research and development expenses increased $11.0 million, or 5%, in the three months ended September 30, 2026, including a $9.4 million increase in product development costs. source
- Fortinet general and administrative expenses decreased $1.8 million, or 3%, in the three months ended September 30, 2026, primarily due to a $1.9 million decrease in legal and other professional-services fees. source
- Fortinet had 15,540 employees as of September 30, 2026, a 3% increase from 15,015 employees as of September 30, 2025. source
- Fortinet research and development expenses increased $41.9 million, or 7%, in the nine months ended September 30, 2026 compared with the same period in 2025. source
- Fortinet research and development expense growth included a $28.9 million increase in personnel-related costs and a $6.4 million increase in product development costs. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -12.1% | Fortinet sales and marketing expenses increased $252.2 million, or 15%, in the nine months ended September 30, 2026 compared with the same… |