Fortinet, Inc. Q1 2026 Earnings Recap

Fortinet’s stock rallied 20.1% post-earnings, driven by billings growth well above expectations and a confident raised outlook, reflecting strong demand across its secure networking and AI-driven solutions.

Key Takeaways

• Total billings surged 31% to $2.09 billion, led by 32% growth in secure networking and over 70% growth in operational technology (OT) security billings.
• Product revenue jumped 41% to $645 million, fueled by AI-related deployments and customer upgrades to higher-performance FortiGate hardware.
• Unified SASE billings grew 31%, with FortiSASE adoption expanding significantly within large enterprise accounts (18% penetration, +45% increase).
• Service revenue increased 11% to $1.21 billion, aided by accelerating service billings growth of 27% and deferred revenue up 15%.
• Operating margins remained strong, with GAAP margin at 31% and non-GAAP at 36%, supporting a 29% increase in GAAP EPS and $1 billion in free cash flow.