Fortinet fourth quarter earnings beat driven by enterprise demand

Fortinet Inc (NASDAQ:FTNT) reported fourth-quarter 2025 net that exceeded expert expectations connected some gross and net per share, sending its banal astir 3% higher successful aboriginal commercialized connected Friday.

For the quarter, the cybersecurity steadfast reported EPS of $0.81, supra the Wall Street statement estimation of $0.74, and gross of $1.91 billion, surpassing the $1.86 cardinal forecast.

Product gross grew 20% year-over-year to $691 million, exceeding estimates of $638.8 million, portion services gross roseate 12% to $1.21 billion, somewhat beneath the $1.22 cardinal expected.

Billings, a cardinal forward-looking metric, accrued 18% to $2.37 billion.

For the afloat twelvemonth 2025, gross reached $6.80 billion, up 14% from 2024, and merchandise gross grew 16% to $2.22 billion.

Full-year billings roseate 16% to $7.55 billion, with Unified SASE and SecOps billings expanding 24%.

Fortinet generated $2.21 cardinal successful escaped currency travel and exceeded the “Rule of 45” for the sixth consecutive year.

Looking ahead, Fortinet provided fiscal twelvemonth 2026 guidance for billings of $8.4 cardinal to $8.6 cardinal and gross of $7.5 cardinal to $7.7 billion, supra Street estimates.

Wedbush analysts highlighted Fortinet’s 4th and guidance arsenic a “step successful the close direction,” peculiarly noting the spot successful billings and ample endeavor demand.

The analysts highlighted that rising AI-driven cyber threats are expanding onslaught surfaces crossed APIs, unreality workloads, and endeavor information pipelines, creating tailwinds for Fortinet and peers specified arsenic CrowdStrike, Palo Alto Networks, and Zscaler.

Wedbush noted beardown maturation successful information operations (22% year-over-year) and Unified SASE (24%), with deals exceeding $1 cardinal expanding 42% year-over-year.

Wedbush maintains an ‘Outperform’ standing with a $90 terms target, citing a beardown pipeline of ample endeavor deals and continued momentum successful SASE and SecOps offerings.