FTNT · 10-Q · 2026Q3

Fortinet, Inc.

Filed 2026-10-30 · Technology · View original filing on EDGAR

Everything FTNT's SEC filings said, ranked

Ranked Events

• Supply Chain CommitmentsImportance 89 · Surprise 82
  Inventory purchase commitments totaled $1.93 billion at September 30, 2026, up $1.12 billion from $810.6 million at December 31, 2025. The increase reflected efforts to optimize inventory and commitments in response to…
• Supply Chain DiversificationImportance 81 · Surprise 64
  Fortinet uses independent contract manufacturers and suppliers for components, with commitments intended to manage manufacturing lead times and secure component supply and pricing. Inventory purchase commitments rose…
• Operating Cash Flow TrendsImportance 79 · Surprise 64
  Operating activities provided $3.07 billion in cash during the nine months ended September 30, 2026, compared with $1.97 billion in the prior-year period. The increase reflected continued business growth, improved…
• Liquidity and Cash PositionImportance 69 · Surprise 64
  At September 30, 2026, Fortinet held $5.32 billion in cash, cash equivalents, and investments, up from $3.92 billion at December 31, 2025; working capital rose to $2.02 billion from $866.2 million. Operating activities…
• Guidance / OutlookImportance 69 · Surprise 60
  For the remainder of 2026, Fortinet expects product revenue and service revenue each to continue growing year over year. For full-year 2026, management expects operating margin to increase slightly compared with 2025,…
• Market Demand TrendsImportance 65 · Surprise 48
  Fortinet reported higher customer demand for higher-performance products, alongside increased unit shipments and higher average selling prices. Product growth was driven by secure networking hardware and term licenses,…
• Capital Expenditure OutlookImportance 60 · Surprise 24
  Fortinet expects to increase data center, PoP, office, and warehouse capacity to support business growth and expansion of existing services or introduction of new services. It estimates full-year 2026 capital…
• Operating Income and MarginsImportance 59 · Surprise 48
  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…
• Revenue Performance and MixImportance 59 · Surprise 48
  Total revenue increased 20% to $2.08 billion in the three months ended September 30, 2026, and increased 22% to $5.98 billion in the nine months ended September 30, 2026. Product revenue grew 37% to $765.0 million in…
• Geographic Revenue PerformanceImportance 53 · Surprise 48
  Revenue grew across all three reported regions, with EMEA contributing the largest share of the increase both in dollars and percentage terms. In the third quarter, revenue grew 23% in EMEA, 21% in the Americas, and…
• Interest Expense TrendsImportance 53 · Surprise 82
  Third-quarter interest expense declined $3.2 million, or 52%, year over year, to $3.0 million. The reduction primarily reflected repayment of Fortinet's 2026 Senior Notes at maturity in March 2026. Interest income…
• Share Repurchase ProgramImportance 52 · Surprise 42
  In January 2026, the board authorized a $1.0 billion increase, bringing the repurchase program authorization to $10.25 billion through February 28, 2027. Fortinet repurchased 12.5 million shares for $972.8 million…
• Supply Chain ConstraintsImportance 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…
• Income Tax Rate ChangesImportance 40 · Surprise 30
  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…
• Operating Expense TrendsImportance 35 · Surprise 22
  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…
• Outstanding IndebtednessImportance 32 · Surprise 24
  Fortinet repaid the full $500.0 million principal amount of its 2026 Senior Notes at maturity on March 15, 2026. As of September 30, 2026, long-term debt was $497.1 million, consisting of the 2031 Senior Notes net of…
• Gross Margin DriversImportance 31 · Surprise 32
  Total gross margin declined 1.8 percentage points to 79.0% in the third quarter of 2026 and declined 1.0 percentage point to 79.8% for the first nine months, primarily because revenue mix shifted toward lower-margin…
• Interest Income TrendsImportance 23 · Surprise 22
  Interest income declined $21.2 million, or 16%, to $108.8 million in the nine months ended September 30, 2026, primarily because of lower average interest rates and lower average cash and cash equivalents following…
• Trade Policy and TariffsImportance 20 · Surprise 24
  Fortinet currently does not expect U.S. tariffs to have a meaningful impact on gross margin in 2026. It warns that higher tariff rates, changes in customs or tariff classifications, or modifications to tariff…
• Macroeconomic Factors ImpactImportance 19 · Surprise 6
  Fortinet says worsening economic conditions, including inflation, changing interest rates, slower growth, recession, and foreign-exchange fluctuations, may reduce sales activity and growth and adversely affect results.…

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