Fortinet 2025 Q3 Earnings Beats Revenue Expectations but Net Income Falls 12.2%

Fortinet (FTNT) reported fiscal 2025 Q3 earnings on November 8, 2025, with revenue surpassing expectations. The cybersecurity firm achieved a 14.4% year-over-year revenue increase, outpacing analyst forecasts. However, , .

Revenue

Fortinet’s total revenue rose to $1.72 billion in Q3 2025, driven by robust performance across segments. , , reflecting strong demand for its cybersecurity solutions and subscription-based services.

Earnings/Net Income

Earnings per share (EPS) fell 11.3% to $0.63, and net income dropped to $473.9 million, . Despite these declines, , underscoring operational resilience.

Price Action

The stock price edged up 2.53% on the latest trading day but fell 5.37% for the week and 5.40% month-to-date.

Post-Earnings Price Action Review

The strategy of buying FTNT shares on a revenue beat and holding for 30 days has shown favorable performance historically. Fortinet’s Q3 revenue beat of $1.72 billion (14.4% YoY growth) supports this approach. However, , . Institutional confidence, including stake increases by Modera Wealth Management (4.5%) and Resona Asset Management (8%), and mean reversion patterns in FTNT’s price behavior suggest potential short-term recovery. Analysts remain split, , while others express optimism. Risks include reliance on service revenue, competitive pressures, , which may signal short-term uncertainty.

CEO Commentary

CEO Insights on Business Performance and Strategy

Fortinet’s CEO emphasized sustained growth in product and service segments, driven by demand for AI-driven security solutions and (Secure Access Service Edge) platforms. He highlighted the company’s 37% operational margin as a testament to efficiency. Looking ahead, the CEO underscored investments in R&D and partnerships to address evolving cyber threats, positioning Fortinet for long-term leadership in the cybersecurity landscape.

Guidance

Fortinet provided FY 2025 EPS guidance of $2.66–$2.70 and Q4 2025 guidance of $0.73–$0.75. , reflecting confidence in its ability to capitalize on market tailwinds despite near-term challenges.

Additional News

Recent developments include two class action lawsuits alleging securities fraud over alleged misstatements about FortiGate refresh cycles. Additionally, , sparking investor scrutiny. Institutional investors, including Modera Wealth Management and Resona Asset Management, increased stakes in FTNT, signaling strategic confidence. Meanwhile, analysts adjusted price targets, .