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Fortinet (FTNT) FY2025 results: revenue $6.8 billion, up 14.2% on the year

Fortinet, Inc. (FTNT) reported revenue of $6.8 billion for fiscal 2025, the year ended 31 December 2025, up 14.2% on the year before. Net income was $1.9 billion, up 6.2%, and diluted earnings per share $2.42. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2026.

Revenue
$6.8 billion
+14.2% on the year
FY2018FY2025
Operating margin
30.7%
30.3% a year earlier
FY2018FY2025
Net income
$1.9 billion
+6.2% on the year
FY2018FY2025
Diluted EPS
$2.42
+7.1% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 1 raised, 13 new.

  • Fourth quarter revenue up 15%: Fourth quarter total revenue was $1,905.0 million against $1,660.1 million a year earlier, growth of 15%.
  • Billings rose 18% in quarter: Quarterly billings were $2,370.4 million against $2,002.5 million; full year billings were $7,553.7 million against $6,532.5 million, up 16%.
  • Quarterly operating margins fell: GAAP operating margin was 32.8% in the quarter against 34.6%; non-GAAP operating margin was 37.3% against 39.2%. Full year non-GAAP operating margin was 35.5%, against 35.0%.
  • Free cash flow reached $2.21 billion: Full year free cash flow was $2,211.8 million against $1,879.2 million; adjusted free cash flow was $2,501.5 million. Fourth quarter free cash flow was $577.4 million against $380.0 million.
  • Repurchases totaled $2.29 billion: Cash used for repurchase and retirement of common stock was $2,289.8 million in the year, against $0.6 million a year earlier.
Read the Q4 FY2025 earnings call summary

From this 10-K

Fortinet sells cybersecurity products built around the convergence of networking and security. Its platform, the Fortinet Security Fabric, spans secure networking, unified secure access service edge and AI-driven security operations, with over 50 products across those three pillars. At 31 December 2025 end-customers sat in over 100 countries and included enterprises in financial services, retail, healthcare and operational technology, communication and security service providers, and government organisations. The company is headquartered in Sunnyvale, California, with research and development centred in the United States and Canada, and it held 1,064 United States patents and 1,405 patents globally, 321 of them AI-related.

Fortinet, Inc., the 10-K for 2025

Fortinet sells cybersecurity products built around the convergence of networking and security. Its platform, the Fortinet Security Fabric, spans secure networking, unified secure access service edge and AI-driven security operations, with over 50 products across those three pillars. At 31 December 2025 end-customers sat in over 100 countries and included enterprises in financial services, retail, healthcare and operational technology, communication and security service providers, and government organisations. The company is headquartered in Sunnyvale, California, with research and development centred in the United States and Canada, and it held 1,064 United States patents and 1,405 patents globally, 321 of them AI-related.

The core technologies

FortiOS is the operating system underneath the platform, enforcing consistent policy across form factors and edges, unifying management and analytics, and carrying encryption including quantum-resistant cryptography. FortiASIC security processing units raise the speed, scale and efficiency of the appliances while cutting footprint and power. FortiCloud is the company's own global cloud infrastructure and private-cloud software as a service platform, powered by FortiStack. FortiAI works on two sides: FortiAI-Assist uses generative and agentic AI to support network and security operations teams, while FortiAI-Protect handles AI-driven threats, zero-day attacks and governance of generative AI use and FortiAI-SecureAI protects models, interfaces and data against leakage.

Secure networking

FortiGate firewalls run FortiOS and can sit at branch, campus, data centre, internal segmentation and private and public cloud for hybrid mesh firewall deployments, with the proprietary chips handling processor-heavy work such as inspecting encrypted traffic. Ethernet becomes part of the security estate through FortiSwitch and FortiLink, FortiAP covers wireless access points, FortiExtender secures 5G and LTE and remote ethernet connections, and network access control covers connected devices. A purpose-built operational technology platform protects the engineered systems behind critical infrastructure, including energy and utilities, manufacturing and transport, through FortiGuard OT Security Services. FortiEndpoint folds secure connectivity, endpoint protection, detection and response and universal zero trust network access into a single agent.

SASE and cloud

The unified secure access service edge offering brings firewall, SD-WAN, secure web gateway, cloud access security broker, data loss prevention, digital experience monitoring, remote browser isolation and zero trust network access from one vendor, delivered over a cloud network of more than 190 points of presence. FortiSASE can also run as Sovereign SASE, inside infrastructure the customer controls, whether on-premises, in private data centres or in colocation environments. Cloud security covers web application firewalls, virtualised and cloud-native firewalls, cloud-native application protection and code security, sold with flexible consumption licensing.

Security operations

FortiAnalyzer is the central operations platform, its unified data lake providing security information and event management, orchestration and automated response, extended detection and response and threat intelligence, with FortiSIEM and FortiSOAR for more advanced needs and FortiNDR, FortiSandbox, FortiDeceptor, FortiDLP and FortiRecon alongside. Customers short of staff can buy FortiGuard services including a security operations centre as a service, managed detection and response, security posture assessment and incident response. FortiGuard Labs is the in-house threat intelligence and research group, which uses millions of global network sensors and machine learning to find new threats and push protection updates.

Selling and building

Sales run mainly through a two-tier distribution model, to distributors who sell on to resellers, service providers and managed security service providers, with direct sales to some large service providers, systems integrators and end users. Named distributors include Arrow Electronics, Exclusive, Ingram Micro and TD Synnex, and sales staff sit in over 100 countries. Appliance manufacturing is outsourced to contract and original design manufacturers including Accton, IBASE, Micro-Star, Senao and Wistron, with approximately 87% of hardware made in Taiwan and finished goods routed through warehouses in California and the Netherlands or a logistics partner in Taoyuan City. Headcount was 15,109 at 31 December 2025, approximately 30% in the United States, approximately 20% in Canada and approximately 50% elsewhere, and the company has no manufacturing or research and development in China.

From Fortinet's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue6,8005,9565,305+14.2%
Cost of revenue1,3291,1581,237+14.8%
Gross profit5,4714,7984,068+14.0%
Gross margin80.5%80.6%76.7%
Research and development816717614+13.8%
Operating income2,0851,8031,241+15.6%
Operating margin30.7%30.3%23.4%
Interest expense20.120.021.0+0.5%
Pre-tax income2,2822,0581,334+10.9%
Income tax439284144+54.7%
Effective tax rate19.2%13.8%10.8%
Net income1,8531,7451,148+6.2%
Net margin27.3%29.3%21.6%
Diluted EPS$2.42$2.26$1.46+7.1%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow2,5912,2581,936+14.7%
Capital expenditure365379204-3.7%
Free cash flow2,2261,8791,731+18.4%
Free cash flow margin32.7%31.6%32.6%
Cash from investing-599-727-649
Cash from financing-2,372-50.1-1,570
Depreciation and amortisation152123113+23.8%
Share-based compensation280258249+8.4%
Buybacks2,2900.61,500+381,533.3%
Diluted shares, weighted765m772m788m-0.9%
Shares outstanding at period end743m767m761m-3.1%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity1,2381,494-463-17.2%
Debt996994992+0.2%
Operating lease liabilities29.446.445.7-36.6%
Other liabilities8,1267,2296,684+12.4%
Total liabilities and equity10,3899,7637,259+6.4%
Fixed assets1,6191,3501,044+20.0%
Goodwill257235126+9.3%
Intangible assets97.311535.3-15.4%
Investments3400.00.0
Cash and equivalents2,4952,8761,398-13.2%
Receivables1,6911,4631,402+15.6%
Inventory400316485+26.6%
Other assets3,4903,4082,768+2.4%
Total assets10,3899,7637,259+6.4%

10-K for the year ended 31 December 2025, filed 25 February 2026: the filing.