FTNT Earnings Show Growth, But EPS Slips Amid Buyback Boost

Fortinet (FTNT) reported fiscal 2025 Q4 earnings on February 5, 2026, with revenue rising 14.8% year-over-year to $1.91 billion, exceeding expectations. The company reaffirmed its guidance for 2026, projecting 12–13% revenue growth and operating margins of 33–36%.

Revenue

Fortinet’s total revenue for Q4 2025 increased by 14.8% to $1.91 billion, driven by robust growth in product and service segments. Product revenue expanded by 20% to $691.1 million, while service revenue grew 12% to $1.21 billion, reflecting strong demand for subscriptions and support-based offerings.

Earnings/Net Income

The company’s EPS declined 1.4% to $0.68 in Q4 2025 from $0.69 in the prior year, while net income fell 3.8% to $506 million. Despite the dip, Fortinet maintained profitability for 17 consecutive years, underscoring its resilient business model.

Post-Earnings Price Action Review

The strategy of buying Fortinet shares on earnings release dates after revenue growth and holding for 30 days delivered an 85.72% return over three years, outperforming the benchmark by 24.37%. While the strategy’s maximum drawdown reached 26.84%, its Sharpe ratio of 0.71 indicated strong risk-adjusted returns.

CEO Commentary

CEO Ken Xie highlighted 18% billing growth and 15% revenue expansion, driven by 20% product revenue growth. He emphasized Fortinet’s 55% firewall market share and strategic investments in Unified SASE and AI-driven security, reaffirming the company’s commitment to exceeding market growth targets.

Guidance

For Q1 2026, Fortinet expects billings of $1.77–$1.87 billion and revenue of $1.7–$1.76 billion. Full-year 2026 guidance includes $7.5–$7.7 billion in revenue and non-GAAP EPS of $2.94–$3.00, with operating margins projected at 33–36%.

Additional News

Fortinet expanded its share repurchase program by $1 billion, raising the total authorization to $10.25 billion, signaling confidence in its financial health. The company also launched FortiOS 8.0, enhancing AI security capabilities, and reported a 7,200-customer base expansion in Q4 2025.

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