Fortinet Inc (NASDAQ:FTNT) reported fourth-quarter 2025 earnings that exceeded analyst expectations on both revenue and earnings per share, sending its stock about 3% higher in early trade on Friday.
For the quarter, the cybersecurity firm reported EPS of $0.81, above the Wall Street consensus estimate of $0.74, and revenue of $1.91 billion, surpassing the $1.86 billion forecast.
Product revenue grew 20% year-over-year to $691 million, exceeding estimates of $638.8 million, while services revenue rose 12% to $1.21 billion, slightly below the $1.22 billion expected.
Billings, a key forward-looking metric, increased 18% to $2.37 billion.
For the full year 2025, revenue reached $6.80 billion, up 14% from 2024, and product revenue grew 16% to $2.22 billion.
Full-year billings rose 16% to $7.55 billion, with Unified SASE and SecOps billings increasing 24%.
Fortinet generated $2.21 billion in free cash flow and exceeded the “Rule of 45” for the sixth consecutive year.
Looking ahead, Fortinet provided fiscal year 2026 guidance for billings of $8.4 billion to $8.6 billion and revenue of $7.5 billion to $7.7 billion, above Street estimates.
Wedbush analysts highlighted Fortinet’s quarter and guidance as a “step in the right direction,” particularly noting the strength in billings and large enterprise demand.
The analysts highlighted that rising AI-driven cyber threats are expanding attack surfaces across APIs, cloud workloads, and enterprise data pipelines, creating tailwinds for Fortinet and peers such as CrowdStrike, Palo Alto Networks, and Zscaler.
Wedbush noted strong growth in security operations (22% year-over-year) and Unified SASE (24%), with deals exceeding $1 million increasing 42% year-over-year.
Wedbush maintains an ‘Outperform’ rating with a $90 price target, citing a strong pipeline of large enterprise deals and continued momentum in SASE and SecOps offerings.