Cybersecurity firm Fortinet's Q3 revenue rises 20%, adj EPS beats estimates
Overview
US cybersecurity firm's Q3 revenue grew 20% yr/yr, slightly beating analyst expectations
Adjusted EPS for Q3 beat analyst consensus
Company increased share repurchase authorization by $1.2 bln, total now $2 bln
Outlook
Fortinet sees Q4 revenue between $2.155 bln and $2.245 bln
Company expects Q4 non-GAAP EPS of $0.93 to $0.95
Fortinet raises 2026 revenue guidance to 20% year-over-year growth
Result Drivers
PRODUCT REVENUE GROWTH - Co said product revenue rose 37% yr/yr, driven by broad-based demand across its portfolio
AI SECURITY DEMAND - Co attributed strong momentum to leadership in AI security, citing new attack surfaces and demand for securing AI infrastructure
NEW AI SERVICES - Co launched FortiGuard Inline AI Security Service and FortiLink SASE service, expanding offerings for AI-specific inspection and distributed locations
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $2.08 bln | $2.06 bln (37 Analysts) |
Q3 Adjusted EPS | Beat | $0.91 | $0.86 (37 Analysts) |
Q3 EPS | $0.86 | ||
Q3 Adjusted Operating Margin | 38.00% | ||
Q3 Billings | $2.34 bln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 30 "hold" and 7 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Fortinet, Inc. is $165.00, about 10.8% below its October 27 closing price of $185.00
The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 47 three months ago
Reuters Recommended Reads
Oct 28 - Gen Digital raises annual revenue forecast on strong cybersecurity demand
Oct 28 - Google launches Gemini 4 Carbon AI model with cybersecurity focus
Oct 26 - Japanese companies compensate users as cyberattacks buffet economy
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)