AI Takeaway
Fortinet delivered strong FY2025 results with revenue growing 14.2% to $6.80B and operating income rising 15.6% to $2.08B, while aggressively returning capital to shareholders via $2.29B in share buybacks.
Revenue
$6.8B
++14.17% YoY
EPS (Basic)
$2.45
++7.46% YoY
Gross Margin
80.5%
-0.11% YoY
Operating Income
$2.08B
++15.60% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 14.2% year-over-year to $6.80B in FY2025, up from $5.96B in the prior year, reflecting continued demand for Fortinet's cybersecurity solutions across its product and service portfolio.
Source: Source: 10-K Income Statement
Operating income increased 15.6% to $2.08B, with operating margin expanding modestly to 30.7% from 30.3%, demonstrating that Fortinet is achieving scale efficiencies even as R&D spending grew 13.8% to $815.5M to support product innovation.
Source: Source: 10-K Income Statement
Operating cash flow rose 14.7% to $2.59B, and with capital expenditures (investing outflows) of $599.1M, free cash flow remained robust, underscoring the high-quality, asset-light nature of Fortinet's software and services business.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockWith a debt-to-equity ratio of 7.40 and total liabilities of $9.15B against stockholders' equity of only $1.24B, Fortinet's balance sheet is structurally leveraged. The 17.2% decline in equity is primarily driven by the large buyback program, which, while shareholder-friendly, reduces the equity cushion available to absorb unexpected losses.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.81 versus the $0.76 analyst consensus — a +7.2% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.8B | $5.96B | +14.17% |
Cost of Revenue | $1.33B | $1.16B | +14.80% |
Gross Profit | $5.47B | $4.8B | +14.02% |
Operating Income | $2.08B | $1.8B | +15.60% |
Net Income | $1.85B | $1.75B | +6.20% |
EPS (Basic) | $2.45 | $2.28 | +7.46% |
EPS (Diluted) | $2.42 | $2.26 | +7.08% |
R&D Expense | $815.5M | $716.8M | +13.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $10.39B | $9.76B | +6.41% |
Current Assets | $5.9B | $5.97B | -1.19% |
Total Liabilities | $9.15B | $8.27B | +10.67% |
Current Liabilities | $5.03B | $4.06B | +23.97% |
Stockholders' Equity | $1.24B | $1.49B | -17.16% |
Cash & Equivalents | $2.5B | $2.88B | -13.23% |
Long-Term Debt | $496.6M | $994.3M | -50.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.59B | $2.26B | +14.72% |
Investing Cash Flow | $-599.1M | $-727.4M | +17.64% |
Financing Cash Flow | $-2.37B | $-50.1M | -4633.53% |
Share Buybacks | $2.29B | $600,000 | +381533.33% |
D&A | $152M | $122.8M | +23.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 80.5% | 80.6% | -0.11% |
Operating Margin | 30.7% | 30.3% | +0.38% |
Net Margin | 27.3% | — | — |
ROE | 149.8% | — | — |
ROA | 17.8% | — | — |
Current Ratio | $1.172 | — | — |
Debt to Equity | $7.395 | — | — |
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Fortinet's revenue grew 14.2% year-over-year to $6.80B in FY2025, up from $5.96B in the prior year. This growth reflects continued demand for Fortinet's cybersecurity products and services across its customer base.
The key takeaways from Fortinet's FY2025 results include 14.2% revenue growth to $6.80B, operating margin expansion to 30.7%, and a massive $2.29B share buyback program. Operating cash flow also grew 14.7% to $2.59B, highlighting the strength of Fortinet's cash generation.
Fortinet's stockholders' equity fell 17.2% to $1.24B in FY2025, primarily because the company spent $2.29B repurchasing its own shares, which reduces the equity on the balance sheet. This is a deliberate capital return strategy rather than a sign of financial distress, as the company generated $2.59B in operating cash flow.
Based on the financial data, key risks include a tightening liquidity position (current ratio of 1.17x after current liabilities surged 24%), a highly leveraged balance sheet with a debt-to-equity ratio of 7.40x, and net income growth of only 6.2% lagging the 14.2% revenue growth. Sustained high R&D spending of $815.5M is also necessary to remain competitive in the fast-moving cybersecurity market.
Yes, Fortinet is highly profitable with a net income of $1.85B, a gross margin of 80.5%, and an operating margin of 30.7% in FY2025. The company's financial health is strong from a profitability and cash flow perspective, though the balance sheet shows elevated leverage (debt-to-equity of 7.40x) largely as a result of the aggressive share buyback program.