Strong Revenue Growth Across the Business
Total revenue grew 20.1% YoY to $1,849.6M in Q1 2026, up from $1,539.7M in Q1 2025, reflecting continued demand for Fortinet's cybersecurity solutions and platform expansion.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Fortinet delivered a strong Q1 2026 with revenue up 20.1% YoY to $1.85B, operating income surging 27.8% to $580M, and operating cash flow reaching $1.08B, while the company returned $823M to shareholders via buybacks.
Revenue
$1.85B
+20.13% YoY
EPS (Diluted)
$0.72
+28.57% YoY
Gross Margin
80.3%
-0.7 pts YoY
Operating Income
$580M
+27.81% YoY
Source: SEC XBRL
Fortinet (FTNT) reported Q1 FY2026 revenue of $1.85B, up 20.1% year over year. Operating margin was 31.4%, up 1.9 points from 29.5% a year earlier. Operating cash flow was $1.08B, up 24.8% year over year. FTNT's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.90 | 0.76 | Beat +18.2% |
| Mar 2026This filing | 0.82 | 0.63 | Beat +30.2% |
| Dec 2025 | 0.81 | 0.76 | Beat +7.2% |
| Sep 2025 | 0.74 | 0.64 | Beat +14.8% |
Adjusted (non-GAAP) EPS of $0.82 versus the $0.63 analyst consensus — a +30.2% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.72.
Compiled by AI from this SEC filing
Total revenue grew 20.1% YoY to $1,849.6M in Q1 2026, up from $1,539.7M in Q1 2025, reflecting continued demand for Fortinet's cybersecurity solutions and platform expansion.
Source: 10-Q Income Statement
Operating income rose 27.8% YoY to $580.0M, with operating margin improving approximately 190 basis points to 31.4% from 29.5%, demonstrating operating leverage as revenue growth outpaced expense growth.
Source: 10-Q Income Statement
R&D expenses grew only 7.8% YoY to $214.0M, well below the 20.1% revenue growth rate, suggesting improved efficiency in product development spending while maintaining innovation investment.
Source: 10-Q Income Statement
Operating cash flow increased 24.8% YoY to $1,077.1M, significantly exceeding net income of $534.5M, indicating strong cash conversion and quality of earnings driven by deferred revenue dynamics typical in subscription-based security businesses.
Source: 10-Q Cash Flow Statement
Fortinet deployed $823.0M in share repurchases during Q1 2026 (versus $0 in Q1 2025), contributing to a 49.6% YoY decline in stockholders' equity to $989.7M and a significant reduction in cash balances from $3,596.6M to $2,223.8M.
Source: 10-Q Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Stockholders' equity fell 49.6% YoY to $989.7M, driven by $823M in share repurchases in a single quarter. This has pushed the Debt-to-Equity ratio to approximately 8.99x, significantly increasing financial leverage and reducing balance sheet flexibility.
Source: 10-Q Balance Sheet
Cash and equivalents declined 38.2% YoY to $2,223.8M from $3,596.6M, largely due to the aggressive buyback program. While operating cash flow remains strong at $1.08B, sustained buybacks at this pace could constrain liquidity for strategic investments or acquisitions.
Source: 10-Q Balance Sheet & Cash Flow Statement
Cost of revenue increased 24.4% YoY, outpacing gross profit growth of 19.1%, resulting in a slight gross margin compression of approximately 67 basis points to 80.3%. Sustained pressure on product or service delivery costs could erode the company's historically high margins.
Source: 10-Q Income Statement
Total liabilities grew 5.3% YoY to $8,893.8M while total assets declined 5.0% to $9,883.5M, leaving a thin equity cushion of $989.7M. This balance sheet structure, while common for subscription-based companies with large deferred revenue, limits financial resilience in adverse scenarios.
Source: 10-Q Balance Sheet
Fortinet operates in the highly competitive cybersecurity sector where technology cycles are short and well-capitalized competitors (including cloud hyperscalers) continuously expand their security offerings. Failure to maintain product differentiation could pressure pricing and revenue growth.
Source: 10-Q Financial Data Analysis
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.85 $B | 1.54 $B | +20.13% |
Cost of Revenue $M | 364.50 $M | 293.10 $M | +24.36% |
Gross Profit $B | 1.49 $B | 1.25 $B | +19.13% |
Operating Income $M | 580.00 $M | 453.80 $M | +27.81% |
Net Income $M | 534.50 $M | 433.40 $M | +23.33% |
EPS (Basic) $ | 0.72 $ | 0.56 $ | +28.57% |
EPS (Diluted) $ | 0.72 $ | 0.56 $ | +28.57% |
R&D Expense $M | 214.00 $M | 198.60 $M | +7.75% |
Answers draw on this SEC filing and the data on this page
Fortinet delivered strong performance in Q2 FY2026 with total revenue rising 25.6% year-over-year to $2.05B and operating income expanding 50.5% to $689.3M, driven by a 52% surge in product revenue and robust operating leverage.
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.
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