A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
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AI Takeaway
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.
Revenue
$2.05B
+25.64% YoY
EPS (Diluted)
$0.82
+43.86% YoY
Gross Margin
80.2%
-0.4 pts YoY
Operating Income
$689.3M
+50.50% YoY
Fortinet (FTNT) reported Q2 FY2026 revenue of $2.05B, up 25.6% year over year. The company posted net income of $606.3M, up 37.8% from a year earlier, with diluted EPS of $0.82. Gross margin was 80.2%. Operating income was $689.3M, up 50.5% year over year. FTNT's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Fortinet reported strong Q2 FY2026 results with revenue up 25.6% YoY to $2.05B and operating income jumping 50.5% YoY to $689.3M, supported by a 52% product revenue expansion and solid operating leverage.
Last 4 quarters: 4 beats
Adjusted (non-GAAP) EPS of $0.90 versus the $0.76 analyst consensus — a +18.2% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.82.
Total revenue for Q2 FY2026 increased 25.6% YoY to $2.05B. Product revenue surged 52% YoY to $773.0M, primarily driven by higher hardware unit shipments, demand for higher-performing ASIC-powered models, recent pricing actions, and AI infrastructure deployments. Service revenue grew 14% YoY to $1.27B, supported by security subscription growth.
Source: 10-Q Item 2 MD&A, p.31
Revenue grew across all geographic regions in Q2 FY2026: EMEA grew 31% YoY to $871.7M (43% of total), Americas increased 23% YoY to $808.2M (39% of total), and APAC rose 21% YoY to $368.0M (18% of total). Non-GAAP billings grew 33% YoY to $2.37B.
Source: 10-Q Item 2 MD&A, p.31-33
Operating income grew 50.5% YoY to $689.3M, lifting Q2 FY2026 operating margin by 5.6 percentage points YoY to 33.7%. Operating expenses as a percentage of revenue decreased by 6.0 percentage points as revenue growth outpaced headcount growth (+4% YoY to 15,472 employees).
Source: 10-Q Item 2 MD&A, p.31-32
Non-GAAP free cash flow for Q2 FY2026 reached $965.6M, compared to $284.1M in Q2 FY2025. On a cumulative year-to-date basis, operating cash flow grew 61.2% YoY to $2.12B, while share repurchases expanded 142.5% YoY to $972.8M.
Source: 10-Q Item 2 MD&A, p.33-34
Rapid global expansion of AI infrastructure has created a shortage of memory chips used in Fortinet's products. Supply constraints may cause production delays and cost increases; price increases implemented to offset input costs may reduce customer demand or fail to fully protect gross margins.
Source: 10-Q Item 1A Risk Factors, p.32, 45
Changes in international trade agreements, tariff increases, or retaliatory trade measures could disrupt operations and increase product input costs. While tariffs currently do not have a material impact, future policy shifts primarily affect hardware sales to U.S. customers.
Source: 10-Q Item 1A Risk Factors, p.32, 49
Fortinet relies heavily on third-party channel partners for sales, with a small number of distributors generating a large portion of revenue and receivables. Notably, a single distributor accounted for 26% of total net accounts receivable as of June 30, 2026.
Source: 10-Q Item 1A Risk Factors, p.50-51
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Fortinet (FTNT) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the FTNT earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.05B | $1.63B | +25.64% |
Cost of Revenue | $404.7M | $314.9M | +28.52% |
Gross Profit | $1.64B | $1.32B | +24.95% |
Operating Income | $689.3M | $458M | +50.50% |
Net Income | $606.3M | $440.1M | +37.76% |
EPS (Basic) | $0.83 | $0.57 | +45.61% |
EPS (Diluted) | $0.82 | $0.57 | +43.86% |
R&D Expense | $225M | $209.5M | +7.40% |
Fortinet reported total revenue of $2.05B in Q2 FY2026, up 25.6% YoY. Operating income surged 50.5% YoY to $689.3M, while net income grew 37.8% YoY to $606.3M, resulting in diluted EPS of $0.82.
Product revenue surged 52% YoY to $773.0M in Q2 FY2026, driven by higher hardware shipments, ASIC-powered product demand, and AI infrastructure deployments. Service revenue grew 14% YoY to $1.27B, supported by strength in security subscriptions and technical support services.
Fortinet highlighted risks related to a global memory chip shortage driven by AI infrastructure demand, potential supply chain costs, and macroeconomic factors like tariffs. Additionally, the company noted distributor concentration, with one partner accounting for 26% of net accounts receivable.
Fortinet (FTNT) is next expected to report earnings on Nov 3, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
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.
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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