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The cybersecurity firm projects revenues between $2.01 billion and $2.1 billion. The Zacks Consensus Estimate for the same is pegged at $2.06 billion, suggesting year-over-year growth of 19.55%.
Billings are expected to be between $2.25 billion and $2.35 billion. The company expects non-GAAP gross margin of 79-81% and non-GAAP operating margin of 35-37%.
The company forecasts third-quarter non-GAAP earnings in the range of 83-87 cents per share. The consensus mark is pegged at 86 cents per share, unchanged from the year-ago quarter. The figure suggests 16.22% growth year over year.
Image Source: Zacks Investment Research
FTNT Earnings Surprise History
In the last reported quarter, the company delivered an earnings surprise of 20%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20.34%.
Our proven model does not predict an earnings beat for Fortinet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Robust demand for Fortinet’s SASE Firewall, which integrates firewall, SD-WAN and SASE functionality on a single FortiOS operating system powered by FortiASIC chips, is likely to have remained the key growth driver in the to-be-reported quarter. Rising demand for sovereign, on-premise and cloud deployment flexibility is expected to have supported product revenues, while an expanding installed base is likely to have aided service revenues, which Fortinet expects at $5.18-$5.22 billion for 2026.
In Secure Networking, Fortinet expanded the FortiGate G Series with the 1200G and FortiSASE Outpost in July, combining local enforcement with cloud-delivered security to address sovereignty, performance and AI infrastructure needs. In July, the company also partnered with Intel to develop Security Processor 6, which is expected to accelerate chip development and diversify its supply chain. In September, Fortinet was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall.
In Security Operations, Fortinet expanded FortiEndpoint in July, converging multiple endpoint capabilities into a single agent to enable safe AI adoption, building on the FortiSOC launch. In AI security, the August acquisition of Virtue AI added automated red-teaming, continuous AI validation and runtime guardrails, complementing FortiAIGate. AI-security collaborations with Anthropic, OpenAI and NVIDIA are likely to have deepened enterprise engagement.
Moderating capital expenditure is expected to have supported free cash flow, as purchases of property and equipment declined to $148.6 million in the first half from $234.3 million a year ago, reflecting lower real estate-related spending. Share repurchases of $972.8 million in the first half have reduced the diluted share count, expected at 741-745 million, supporting per-share earnings.
However, the guided operating margin sits below the 38% achieved in the second quarter, signaling sequential pressure from elevated sales and marketing investments. Lower interest income, following the $500 million senior note repayment and buybacks, is likely to have weighed on the bottom line. Tariffs, supply chain risks and longer enterprise sales cycles warrant caution. Intense competition in the cybersecurity market from established players like Palo Alto Networks (PANW - Free Report) , Zscaler (ZS - Free Report) and CrowdStrike (CRWD - Free Report) continues to pressure margins.
Overall, strong SASE Firewall momentum, AI-security expansion and disciplined capital spending are likely to have supported Fortinet’s third-quarter performance, although margin normalization and macroeconomic uncertainty are expected to have tempered the upside.
Top-Line Growth Estimates for Q3
Our model estimate for third-quarter 2026 Americas revenues is pegged at $819 million, indicating 20.2% growth from the figure reported in the year-ago quarter.
Our model estimate for Asia Pacific and Japan revenues is pinned at $373 million, indicating growth of 12.6% from the figure reported in the year-ago quarter.
Our model estimate for Europe, Middle East and Africa revenues is pegged at $884 million, suggesting a 23.8% decrease from the figure reported in the year-ago quarter.
Our model estimate for third-quarter 2026 total billings is pegged at $2.3 billion, indicating a 27.4% decrease from the figure reported in the year-ago quarter.
FTNT’s Share Price Performance and Valuation
Fortinet shares have gained 127.3% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 103.3% and 14.1%, respectively.
FTNT’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 47.69, higher than the sector's average of 18.86. The company carries a Value Score of F.
FTNT Trades at a Premium
Image Source: Zacks Investment Research
Investment Considerations
Fortinet offers a compelling long-term investment case, anchored by accelerating SASE Firewall adoption and its proprietary FortiASIC-powered FortiOS platform. Third-quarter 2026 guidance of $2.01-$2.1 billion in revenues and $2.25-$2.35 billion in billings signals sustained demand momentum. Recent launches, including the FortiGate 1200G, FortiSASE Outpost, expanded FortiEndpoint and the Virtue AI acquisition, strengthen its AI-security positioning. The Intel collaboration on Security Processor 6 enhances supply chain resilience. Moderating capital expenditure and robust share repurchases support healthy free cash flow and per-share earnings. Despite premium valuation and stiff security competition, Fortinet’s differentiated platform and disciplined execution justify a positive outlook for investors.
Conclusion
Fortinet enters its third-quarter 2026 results with strong SASE Firewall momentum, an expanding AI-security portfolio and disciplined capital spending. Strategic moves, including the Virtue AI acquisition and the Intel collaboration, strengthen its competitive positioning, while robust buybacks support healthy per-share earnings growth. Despite a premium valuation and stiff security competition, investors should consider buying the stock ahead of the upcoming results.
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Fortinet Stock Before Q3 Earnings: Buy Now or Wait for Results?
Key Takeaways
Fortinet (FTNT - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, after market close.
The cybersecurity firm projects revenues between $2.01 billion and $2.1 billion. The Zacks Consensus Estimate for the same is pegged at $2.06 billion, suggesting year-over-year growth of 19.55%.
Billings are expected to be between $2.25 billion and $2.35 billion. The company expects non-GAAP gross margin of 79-81% and non-GAAP operating margin of 35-37%.
The company forecasts third-quarter non-GAAP earnings in the range of 83-87 cents per share. The consensus mark is pegged at 86 cents per share, unchanged from the year-ago quarter. The figure suggests 16.22% growth year over year.
Image Source: Zacks Investment Research
FTNT Earnings Surprise History
In the last reported quarter, the company delivered an earnings surprise of 20%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20.34%.
Fortinet, Inc. Price and EPS Surprise
Fortinet, Inc. price-eps-surprise | Fortinet, Inc. Quote
Earnings Whispers for FTNT
Our proven model does not predict an earnings beat for Fortinet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
MSFT has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Consider
Robust demand for Fortinet’s SASE Firewall, which integrates firewall, SD-WAN and SASE functionality on a single FortiOS operating system powered by FortiASIC chips, is likely to have remained the key growth driver in the to-be-reported quarter. Rising demand for sovereign, on-premise and cloud deployment flexibility is expected to have supported product revenues, while an expanding installed base is likely to have aided service revenues, which Fortinet expects at $5.18-$5.22 billion for 2026.
In Secure Networking, Fortinet expanded the FortiGate G Series with the 1200G and FortiSASE Outpost in July, combining local enforcement with cloud-delivered security to address sovereignty, performance and AI infrastructure needs. In July, the company also partnered with Intel to develop Security Processor 6, which is expected to accelerate chip development and diversify its supply chain. In September, Fortinet was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall.
In Security Operations, Fortinet expanded FortiEndpoint in July, converging multiple endpoint capabilities into a single agent to enable safe AI adoption, building on the FortiSOC launch. In AI security, the August acquisition of Virtue AI added automated red-teaming, continuous AI validation and runtime guardrails, complementing FortiAIGate. AI-security collaborations with Anthropic, OpenAI and NVIDIA are likely to have deepened enterprise engagement.
Moderating capital expenditure is expected to have supported free cash flow, as purchases of property and equipment declined to $148.6 million in the first half from $234.3 million a year ago, reflecting lower real estate-related spending. Share repurchases of $972.8 million in the first half have reduced the diluted share count, expected at 741-745 million, supporting per-share earnings.
However, the guided operating margin sits below the 38% achieved in the second quarter, signaling sequential pressure from elevated sales and marketing investments. Lower interest income, following the $500 million senior note repayment and buybacks, is likely to have weighed on the bottom line. Tariffs, supply chain risks and longer enterprise sales cycles warrant caution. Intense competition in the cybersecurity market from established players like Palo Alto Networks (PANW - Free Report) , Zscaler (ZS - Free Report) and CrowdStrike (CRWD - Free Report) continues to pressure margins.
Overall, strong SASE Firewall momentum, AI-security expansion and disciplined capital spending are likely to have supported Fortinet’s third-quarter performance, although margin normalization and macroeconomic uncertainty are expected to have tempered the upside.
Top-Line Growth Estimates for Q3
Our model estimate for third-quarter 2026 Americas revenues is pegged at $819 million, indicating 20.2% growth from the figure reported in the year-ago quarter.
Our model estimate for Asia Pacific and Japan revenues is pinned at $373 million, indicating growth of 12.6% from the figure reported in the year-ago quarter.
Our model estimate for Europe, Middle East and Africa revenues is pegged at $884 million, suggesting a 23.8% decrease from the figure reported in the year-ago quarter.
Our model estimate for third-quarter 2026 total billings is pegged at $2.3 billion, indicating a 27.4% decrease from the figure reported in the year-ago quarter.
FTNT’s Share Price Performance and Valuation
Fortinet shares have gained 127.3% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 103.3% and 14.1%, respectively.
FTNT’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 47.69, higher than the sector's average of 18.86. The company carries a Value Score of F.
FTNT Trades at a Premium
Image Source: Zacks Investment Research
Investment Considerations
Fortinet offers a compelling long-term investment case, anchored by accelerating SASE Firewall adoption and its proprietary FortiASIC-powered FortiOS platform. Third-quarter 2026 guidance of $2.01-$2.1 billion in revenues and $2.25-$2.35 billion in billings signals sustained demand momentum. Recent launches, including the FortiGate 1200G, FortiSASE Outpost, expanded FortiEndpoint and the Virtue AI acquisition, strengthen its AI-security positioning. The Intel collaboration on Security Processor 6 enhances supply chain resilience. Moderating capital expenditure and robust share repurchases support healthy free cash flow and per-share earnings. Despite premium valuation and stiff security competition, Fortinet’s differentiated platform and disciplined execution justify a positive outlook for investors.
Conclusion
Fortinet enters its third-quarter 2026 results with strong SASE Firewall momentum, an expanding AI-security portfolio and disciplined capital spending. Strategic moves, including the Virtue AI acquisition and the Intel collaboration, strengthen its competitive positioning, while robust buybacks support healthy per-share earnings growth. Despite a premium valuation and stiff security competition, investors should consider buying the stock ahead of the upcoming results.