Fortinet Revenue Rises 20%, but Why Did FTNT Plunge?

What did Fortinet report for the third quarter?

For the quarter ended September 30, 2026, revenue reached $2.078 billion, up 20% year over year; product revenue increased 37% to $765 million, billings rose 29% to $2.34 billion, and non-GAAP earnings per share reached $0.91.

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Why did FTNT fall despite beating earnings estimates?

Fortinet's $0.91 non-GAAP earnings per share exceeded the $0.86 consensus estimate, and revenue topped the $2.06 billion forecast, but product-revenue growth slowed from 52% in the second quarter to 37% in the third, disappointing investors with high expectations for AI-driven cybersecurity demand.

How did Fortinet's 2026 guidance change?

Fortinet raised its full-year revenue forecast from $8.020 billion–$8.180 billion in July to $8.125 billion–$8.215 billion in October, while cutting its service-revenue forecast from $5.180 billion–$5.220 billion to $5.150 billion–$5.170 billion.

Why does the service-revenue slowdown matter?

Service revenue grew 13% to $1.31 billion, well below product-revenue growth of 37%; management attributed some weakness to delayed service activations and enterprise agreements consolidating existing arrangements, making the conversion of service billings and deferred revenue into recognized revenue an important indicator.

What should investors watch next?

Fortinet guided fourth-quarter revenue to $2.155 billion–$2.245 billion and expects service revenue to grow faster in 2027 than in 2026, so investors will be watching whether service growth accelerates while product demand remains strong.