Fortinet® (Nasdaq: FTNT), a global leader in cybersecurity and networking convergence, reported impressive financial results for the second quarter ending June 30, 2025. The company delivered $1.63 billion in revenue, marking a 14% year-over-year increase, while annual billings grew 15% to $1.78 billion. Fortinet also raised its full-year 2025 billing outlook by $100 million, reflecting continued momentum across its portfolio.
Accelerating SASE and Cybersecurity Growth
The company’s unified Secure Access Service Edge (SASE) platform recorded a 22% growth in annual recurring revenue (ARR), underscoring the demand for integrated security solutions. Additionally, cybersecurity operations revenue surged 35% year-over-year, reinforcing Fortinet’s leadership in next-generation security services.
Fortinet’s GAAP operating margin reached 28%, while non-GAAP operating margin stood at 33%, highlighting operational efficiency and profitability.
Expanding Firewall Leadership
Ken Xie, Founder, Chairman, and Chief Executive Officer of Fortinet, emphasized that the company’s strong performance reflects a customer-first strategy and relentless innovation.
“Our Q2 results demonstrate the strength of our platform and execution. By exceeding our billings guidance, we are in a position to confidently raise our full-year outlook,” Xie stated.
He highlighted Fortinet’s global leadership in network firewalls, including the Next-Generation SASE Firewall, and recognized positioning in the 2025 Gartner® Magic Quadrant™ for SASE Platforms. He also underscored Fortinet’s AI-driven security approach, the advantage of its unified FortiOS operating system, and recognition across five separate Gartner® Magic Quadrant™ reports.
Q3 2025 Financial Outlook
For the third quarter of 2025, Fortinet projects:
- Revenue between $1.67 billion and $1.73 billion
- Billings between $1.76 billion and $1.84 billion
- Non-GAAP gross margin of 80% to 81%
- Non-GAAP operating margin between 32.5% and 33.5%
- Diluted non-GAAP EPS in the range of $0.62 to $0.64, based on a non-GAAP effective tax rate of 18% and a diluted share count of 772 to 776 million
Full-Year 2025 Outlook
Looking ahead, Fortinet expects:
- Total revenue between $6.675 billion and $6.825 billion
- Service revenue ranging from $4.55 billion to $4.65 billion
- Billings between $7.325 billion and $7.475 billion
- Non-GAAP gross margin of 79% to 81%
- Non-GAAP operating margin of 32% to 33.5%
- Diluted non-GAAP EPS between $2.47 and $2.53, based on a diluted share count of 773 to 777 million
Strategic Achievements and Industry Recognition
Fortinet has reinforced its leadership position with several milestones in 2025. The company was named a Leader in the 2025 Gartner® Magic Quadrant™ for SASE Platforms, securing the #1 ranking in Critical Capabilities for SASE Platforms for Secure Branch Network Modernization. Fortinet remains the only vendor included in five different Gartner® network security Magic Quadrant™ reports.
Additionally, Fortinet expanded its FortiCloud platform with three new integrated services: FortiIdentity, FortiDrive, and FortiConnect. The company also maintained its recognition as the Overall Leader in the Westlands Advisory IT/OT Network Protection Platform Navigator 2025™ report for the third consecutive year.
In networking, Fortinet was named a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure for the second year running. Customer trust remains strong, as Fortinet earned Gartner Peer Insights™ Customers’ Choice recognition for SD-WAN (sixth year) and Endpoint Protection (third year).
With a rapidly expanding portfolio, Fortinet surpassed 1,400 issued patents globally, including over 500 AI-related patents, reflecting its significant investment in research and development.
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