Fortinet Beats on Q3, Raises FY26 Revenue Growth Guidance to 20% and Adds $1.2B to Buyback
FTNT sits 88% above its 52-week low of $73.55 on elevated volume (2.1× avg).
Summary
Fortinet beat Q3 estimates with 20% revenue growth and 29% billings growth, raised FY26 revenue guidance to 20% growth, and added $1.2 billion to its buyback. The one blemish is a 200-basis-point year-over-year decline in non-GAAP gross margin on richer product mix.
Key Events · Earnings and Guidance · FTNT
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Q3 Beat With 20% Revenue Growth
Revenue reached $2.08 billion, up 20% year over year, with product revenue up 37% to $765 million and billings up 29% to $2.34 billion. Non-GAAP EPS of $0.91 compared with $0.74 a year ago.
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FY26 Guidance Raised to 20% Growth
Full-year 2026 revenue guidance is now $8.125-$8.215 billion and billings $9.568-$9.718 billion, the third billings raise this year. Q4 guidance calls for revenue of $2.155-$2.245 billion and non-GAAP EPS of $0.93-$0.95.
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Buyback Authorization Up $1.2 Billion
The board increased the share repurchase authorization by $1.2 billion, leaving $2 billion remaining. Fortinet repurchased $972.8 million of stock in the first nine months of 2026.
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Gross Margin Pressure From Product Mix
Non-GAAP gross margin fell to 79.6% from 81.6% a year ago, and Q4 guidance of 78.0%-80.0% implies continued pressure as product revenue outgrows services.
Analysis · FTNT · Technology
Fortinet delivered a clean beat-and-raise. Q3 revenue of $2.08 billion grew 20% year over year, product revenue jumped 37% to $765 million, and billings rose 29% to $2.34 billion. Management raised full-year 2026 revenue guidance to $8.125-$8.215 billion (20% growth) and lifted billings guidance for the third time this year, while Q4 EPS guidance of $0.93-$0.95 brackets the $0.91 just reported. The company also increased its share repurchase authorization by $1.2 billion, leaving $2 billion available, which supports per-share results against a diluted count of roughly 742 million. With $3.75 billion in cash and $946 million of quarterly operating cash flow, the buyback is funded from operations rather than debt. The main thing that could undercut the story is gross margin: non-GAAP gross margin slipped to 79.6% from 81.6% a year ago as hardware-heavy product mix rose, and Q4 guidance of 78.0%-80.0% implies no near-term recovery.
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In the 30 days to Oct 29, 2026, 39% of the 991 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FTNT was trading at $137.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $127.7B. The 52-week trading range was $73.55 to $197.13. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.