What is Fortinet's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Fortinet year over year?

What guidance did Fortinet's management provide for the next earnings period?

What factors drove the changes in Fortinet's revenue and profit?

What does Fortinet do and what are its main business segments?

What is the market's earnings forecast for Fortinet next quarter?

What were the key takeaways from Fortinet's earnings call?

What were the key takeaways from Fortinet’s earnings call?

- **Unified SASE Dominance**: 100%+ YoY growth in FortiSASE, 15% of large enterprises now using Sovereign SASE. 
- **OT Security Leader**: 30% YoY growth, #1 market share in firewall and SD-WAN. 
- **Financial Strength**: 36.9% operating margin, $568M free cash flow, and $1.83B share buybacks in Q3. 
- **Future Growth Drivers**: New ASICs, FortiOS 8.0, and secure AI data center solutions targeting 10-15% product revenue growth. 
- **Rule of 45 Reaffirmed**: On track for sixth straight year, with 14% billings growth for FY25.

**【CEO Summary Section】**
- Fortinet reported 14% year-over-year (YoY) growth in total billings to $1.81 billion, driven by 19% growth in Unified SASE and 33% growth in SecOps. 
- Unified SASE billings grew over 100% YoY, with 15% of large enterprise customers now using FortiSASE (up 55% YoY). 
- Operational Technology (OT) and critical infrastructure solutions grew 30% YoY, outpacing market growth. 
- The company reaffirmed confidence in meeting the Rule of 45 for the sixth consecutive year, with 14% midpoint billings growth for FY25.

**【CFO Financial Commentary】**
- Total revenue reached $1.72 billion (+14% YoY), with product revenue up 18% to $559 million and service revenue up 13% to $1.17 billion. 
- Gross margin was 81.6%, operating margin 36.9% (record for Q3), and free cash flow $568 million. 
- Q4 guidance: Billings $2.185B-$2.285B (+12% YoY), revenue $1.825B-$1.885B (+12% YoY), non-GAAP EPS $0.73-$0.75. 
- Full year 2025: Billings $7.37B-$7.47B (+14% YoY), revenue $6.72B-$6.78B (+13% YoY). 
- CFO highlighted service revenue growth acceleration in H2 2026 due to strong product attach rates.

**【Q&A Key Highlights】**
- **Product Growth Drivers**: CEO Ken Xie emphasized new ASICs, FortiOS 8.0 launch, and OT security as key growth engines. Product revenue expected 10-15% YoY growth. 
- **SASE Momentum**: 8-figure police force deal showcased Sovereign SASE adoption for data privacy compliance. FortiSASE now $1+ billion business. 
- **AI Data Center Expansion**: New secure AI data center solution targets hyperscalers and enterprises scaling AI workloads. 
- **Competitive Advantage**: ASIC-based hardware delivers 5x-10x performance vs competitors, reducing TCO by 33%. 
- **Share Repurchases**: $1.83B spent in Q3, with $796M remaining under $1B authorization increase.


Fortinet, Inc. (FTNT) Q3 2025 Earnings Call Transcript

- **Revenue & Margin Strength**: Q2 revenue up 14% to $1.63B, operating margin 33.1%. Full-year billings guidance raised to 13% growth.
- **SASE Dominance**: FortiSASE ARR +100%, 13% of large enterprises adopt. Unified SASE (24% billings) and SecOps (11%) drive growth.
- **AI & Infrastructure Edge**: $2B infrastructure investment supports cloud services. AI solutions fastest-growing, with 500+ patents.
- **Competitive Position**: Gartner SASE leader, #1 in Secure Branch. Only vendor with SASE in FortiOS, reducing TCO by 50%.
- **Cash Flow & Buyback**: Free cash flow $284M, $401M shares repurchased. Full-year adjusted free cash flow $1.27B (40% margin).

**【CEO Summary Section】**
- **Q2 Performance**: Revenue grew 14% YoY to $1.63B, billing up 15% to $1.78B, with operating margin at 33.1%. Large enterprise deals over $1M increased 50% in value and 29% in count.
- **Unified SASE Growth**: Contributes 24% of billings, with FortiSASE ARR up 100% YoY. 13% of large enterprises adopted FortiSASE, up 60% YoY.
- **AI and Infrastructure Investment**: $2B invested in global infrastructure for FortiSASE and cloud services. AI solutions are fastest-growing, with 500+ AI patents.
- **Market Recognition**: Named Gartner SASE leader and #1 in Secure Branch Networking. Only vendor with core SASE capabilities in a single OS (FortiOS).

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420M, Non-GAAP EPS $1.08 (vs. $1.05 est.). Gross margin 81.6%, operating margin 33.1% (vs. 32.5% est.). Free cash flow $284M, adjusted $428M.
- **Guidance Update**: Full-year billings raised to $7.325B-$7.475B (13% YoY), revenue $6.675B-$6.825B. Rule of 45 maintained for 6th year.
- **Infrastructure Spend**: $168M in Q2, total $380M-$430M for FY25, supporting cloud and SASE expansion.

**【Q&A Key Highlights】**
- **FortiSASE & Core Appliances**: SASE complements, not replaces, firewalls. 90% of large FortiSASE customers started with SD-WAN, reflecting integrated platform value.
- **Refresh Cycle**: 40%-50% through 2026 upgrade cycle. 2027 cohort is low-end, less impactful on product revenue but upsell opportunity.
- **OT Growth**: Billings up >20% YoY, leading in Westland OT security report. OT devices part of 2026 refresh, driving consolidation.
- **AI Strategy**: FortiAI solutions (e.g., FortiAI-Protect) fastest-growing. Long-term focus on agentic AI security with integrated infrastructure.
- **Margins & Cash Flow**: Operating margin guidance raised to 32%-33.5%. Tax rate reduced to 18% due to new laws, lowering cash taxes by $125M.


Fortinet, Inc. (FTNT) Q2 2025 Earnings Call Transcript

- **Q1 Growth Milestones**: 14% revenue growth, Unified SASE up 18%, SecOps up 29%, with SASE penetration reaching 11% in large enterprises.
- **Profitability Surge**: 34.2% operating margin (vs. 28.5% YoY), 81.9% gross margin, and $783M free cash flow highlight record profitability.
- **Innovation Showcases**: FortiGate 700G series delivers 5-10x performance advantage; Sovereign SASE wins in finance, government, and healthcare.
- **Guidance Confidence**: Full-year billings target 12% growth, with Rule of 45 expected for the 6th year, despite macroeconomic headwinds.
- **Key Growth Drivers**: OT security (Westland leader), AI (500+ patents), and SASE adoption (73% SD-WAN customers transitioning to FortiSASE).

**【CEO Summary Section】**
- Q1 2025 revenue grew 14% YoY, driven by Unified SASE (18% growth) and AI-driven SecOps (29% growth), accounting for 25% and 10% of total business, respectively.
- Launched FortiGate 700G series, a high-performance firewall with 5-10x performance advantage over competitors, powered by FortiASIC technology.
- Expanded SASE adoption: 73% of large enterprises with SD-WAN have begun transitioning to FortiSASE, with penetration increasing 10% QoQ to 11%.
- Sovereign SASE solution gained traction in regulated sectors (finance, government, healthcare), offering on-premise data processing for compliance.
- OT security and AI investments positioned as key 5-year growth drivers, with over 500 AI patents and 15+ years of R&D.

**【CFO Financial Commentary】**
- Total revenue: $1.54B (14% YoY), with product revenue ($459M, 12% YoY) and service revenue ($1.08B, 14% YoY) both outperforming expectations.
- Gross margin: 81.9% (up 380bps YoY), driven by normalized inventory charges and 87.8% service margin.
- Operating margin: 34.2% (up 570bps YoY), highest Q1 record, supported by 51% free cash flow margin ($783M).
- Guidance for Q2 2025: Billings $1.685B-$1.765B (12% midpoint growth), revenue $1.59B-$1.65B (13% growth), operating margin 31.5%-32.5%.
- Full-year 2025: Billings $7.2B-$7.4B (12% growth), revenue $6.65B-$6.85B (13% growth), targeting Rule of 45 for the 6th consecutive year.

**【Q&A Key Highlights】**
- **Service Revenue Dynamics**: Q1 decline due to 2 fewer days vs. Q4, but strong RPO (3.4B, +15% YoY) and FortiGate growth (above product average) indicate future acceleration.
- **Tariff Impact**: Minimal Q2 impact, but potential 120bps headwind in FY25 from USD weakness; only hardware sales to U.S. customers subject to tariffs.
- **SASE Growth**: FortiSASE ARR up 26%, fastest-growing SASE solution at scale, displacing legacy vendors in large enterprises.
- **Macroeconomic Resilience**: Strong close rates (73% SD-WAN adoption) and pipeline growth suggest demand resilience despite geopolitical uncertainty.
- **OT and AI Expansion**: OT security leads in Westland report; AI patents (500+) integrated into 12+ products, driving automation and threat detection.

Fortinet, Inc. (FTNT) Q1 2025 Earnings Call Transcript

- **Revenue Surge**: Q4 2024 revenue up 17% to $1.66B, product revenue at 6-year high with 18% growth. Unified SASE ARR jumps 28% to $1.5B, SASE ARR +96%. 
- **Profit Records**: Operating margin hits 39.2%, free cash flow $380M (23% margin). Full-year free cash flow $1.9B (32% margin). 
- **AI & SASE Innovation**: AI-powered threat detection, sovereign SASE solutions, and Perception Point acquisition extend security to modern workspace. 
- **2025 Outlook**: Billings $7.2-7.4B (12% growth), revenue $6.65-6.85B (13%). Q1 2025: Billings $1.52-1.60B (11%), revenue $1.50-1.56B (13%). 
- **Transition**: Keith Jensen retiring; Christiane Ohlgart to lead as CFO. 
- **SASE Penetration**: 10% global adoption (vs. 8% 2Q24), 70% of large enterprise deployments displace competitors. 
- **Upgrade Cycle**: 2026-2027 firewall refresh to drive SASE, SecOps, and 5G firewall cross-sell; Q4 2024 saw early enterprise adoption. 
- **Tariff Risk**: 25-27% U.S. revenue exposure; Latin America/Canada delays possible, but ASIC cost advantage mitigates risk. 
- **SMB Growth**: 30% YoY driven by channel incentives and FortiOS 30+ security functions on $300 devices.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue increased 17% YoY to $1.66 billion, with product revenue up 18% to $574 million, the highest growth in 6 quarters. Unified SASE ARR grew 28% to over $1.5 billion, driven by SASE ARR growth of 96%. 
- **Unified SASE Momentum**: SASE deal pipeline up 90%, with 7-figure deals increasing over 60%. SASE now accounts for 23% of total business, highlighted by sovereign SASE solutions for service providers and enterprises. 
- **AI and Security Innovation**: AI-powered threat detection, FortiAI Ops for network automation, and DLP for LLM leakage protection. Acquisition of Perception Point extends email security to modern workspace. 
- **OT Leadership**: OT sales approached $1 billion in 2024, with new 40G/50G/70G firewalls and unified SaaS solutions for SMBs. 
- **Recognition**: Ranked #7 on Forbes' Most Trusted Companies list, the only cybersecurity firm in the top 50.

**【CFO Financial Commentary】**
- **Profitability**: Record operating margin of 39.2%, up 720bps YoY. Free cash flow of $380 million (23% margin), up 11pts YoY. Full-year free cash flow reached $1.9 billion (32% margin). 
- **Gross Margin Expansion**: Total gross margin 81.9%, up 340bps YoY. Product GM 69.3% (840bps improvement), service GM 88.6% (50bps up). 
- **Acquisition Impact**: Lacework, Next DLP, and Perception Point added 115bps to Q4 billings, vs. 75bps expectation. Full-year 2025 impact: 125bps billings growth, 50bps margin dilution. 
- **Guidance 2025**: Billings $7.2-7.4 billion (12% growth), revenue $6.65-6.85 billion (13% growth). Q1 2025: Billings $1.52-1.60 billion (11% growth), revenue $1.50-1.56 billion (13% growth). 
- **Transition**: Keith Jensen retiring in May; Christiane Ohlgart to succeed as CFO.

**【Q&A Highlights】**
- **SASE Growth**: 70% of large enterprise SASE deployments displace competitors; 10% global SASE penetration (vs. 8% 2Q24). 
- **Product Refresh**: 2026-2027 firewall upgrade wave to drive SASE, SecOps, and 5G firewall cross-sell. Q4 2024 saw early enterprise adoption, with SMB activity expected in 2H25. 
- **Tariff Impact**: U.S. business accounts for 25-27% of revenue; tariffs may delay Latin America and Canada deals, but Fortinet's ASIC-based cost advantage mitigates risk. 
- **SMB Strength**: 30% YoY growth driven by channel incentives and FortiOS 30+ security functions on $300 devices. 
- **Linx Strategy**: 25 million active users, 250M devices shipped; integrating consumer-grade security with Fortinet's secure networking for remote/hybrid work. 
- **AR/IRR Focus**: Shifting from billings to ARR (Unified SASE/SecOps) for long-term customer retention and upsell opportunities. 
- **Succession**: Christiane Ohlgart to lead as CFO, leveraging 6+ years of Fortinet experience in channel, services, and M&A.

Fortinet (FTNT)-6 Feb 25-2024 Q4 Earnings call transcript

Fortinet (FTNT)-7 Nov 24-2024 Q3 Earnings call transcript

Fortinet (FTNT)-6 Aug 24-2024 Q2 Earnings call transcript

Fortinet (FTNT)-2 May 24-2024 Q1 Earnings call transcript

- **Q4 Growth Highlights**: Billings up 8.5% YoY to $1.9 billion, driven by 6 eight-figure deals. SecureOps (+44%) and SASE (+19%) led growth.
- **Financial Strength**: 78.5% gross margin, $454 million operating income, $1.7 billion annual free cash flow.
- **AI & Platform Differentiation**: FortiOS unifies 30+ security functions; AI-powered solutions enable automated threat response.
- **Guidance**: Q1 2024 billings $1.39-1.45 billion, FY2024 service revenue +17% YoY.

**【CEO Summary Section】**
- Q4 2023 billings reached $1.9 billion, up 8.5% YoY, driven by 6 eight-figure deals across SASE, SecureOps, and secure networking.
- SecureOps billing grew 44% (11% of total), with strong performance in EDR, SIM, email security, and NDR.
- SASE billing increased 19% (21% of total), highlighted by a 350,000-seat deal for a U.S. school district.
- AI integration across products enables automated threat detection and remediation, with FortiAI now available in multiple solutions.
- FortiOS unifies 30+ networking and security functions, giving customers a single platform for consistent policies and automated responses.

**【CFO Financial Commentary】**
- Q4 2023 revenue: $1.42 billion (+10% YoY), with service revenue at $927 million (+25% YoY) and product revenue at $488 million (-10% YoY).
- Gross margin: 78.5% (up 90bps YoY), driven by service margin expansion and mix shift.
- Operating income: $454 million (32% operating margin), exceeding guidance by $40 million.
- Free cash flow: $165 million, with $895 million spent on share buybacks (16.8 million shares).
- FY2023 results: Billings $6.4 billion (+14% YoY), revenue $5.3 billion (+20% YoY), free cash flow $1.7 billion.
- Q1 2024 guidance: Billings $1.39-1.45 billion (+5.5% YoY), EPS $0.37-0.39.
- FY2024 guidance: Billings $6.4-6.6 billion (+6-9% YoY), service revenue $3.92-3.97 billion (+17% YoY).

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