Fortinet Q2 revenue rises 26% on firewall and SASE demand; lifts 2026 outlook

Overview

• Cybersecurity firm's Q2 revenue rose 26% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company raised 2026 revenue guidance to 19% yr/yr growth

Outlook

• Fortinet sees Q3 revenue between $2.01 bln and $2.1 bln

• Company expects Q3 diluted non-GAAP EPS of $0.83 to $0.87

• Fortinet raises 2026 revenue guidance to 19% year-over-year growth

Result Drivers

• PRODUCT REVENUE GROWTH - Product revenue rose 52% yr/yr, driven by demand for integrated firewall and SASE solutions

• INNOVATION AND AI INTEGRATION - Co said results reflect differentiated value of innovation in the AI Era, citing new product launches and AI-driven security

• STRATEGIC PARTNERSHIPS - Recent collaborations with Intel, Anthropic, OpenAI and NVIDIA supported product development and AI safety initiatives

Company press release: ID:nGNE3pJxD3

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 29 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Fortinet Inc is $125.00, about 16.7% below its July 28 closing price of $149.98

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

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• July 28 - Varonis Q2 revenue beats analyst estimates as cloud platform adoption increased

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)