Fortinet Inc (NASDAQ: FTNT) stock lost over 11.1% on November 2nd, 2018 (as of 11:16 AM GMT-4; Source: Google finance). The company reported third-quarter net income of $58.7 million compared with $26.7 million in the year-ago period. Cash from operations was $177 million, up 9% year-over-year. Free cash flow was $159 million, up 13% year-over-year. On a year-to-date basis, free cash flow increased 32% to $417 million. Capital expenditures in the third quarter were $18 million.
FTNT in the third quarter of FY 18 has reported the adjusted earnings per share of 49 cents, while the adjusted revenue growth of 21 percent to $453 million in the third quarter of FY 18. The third quarter result as billing increased 22% to $528 million. Each region, experienced strong billings growth to the Americas, APAC and EMEA, up 25%, 22% and 19%, respectively. The US provided strong enterprise growth in the quarter, accounting for 7 of our top 10 and the majority of our top 25 customer billings. Billings to our Global 2000 customers, excluding service providers and MSSPs on a trailing 12-month basis grew 31%. Non-GAAP operating margin was 24% in the third quarter. The Security Fabric Platform offers three major competitive advantages. First, the fabric platform offers a broader set of the end-to-end solution providing protection from IoT for data center, also promise (ph) and cloud, organically fueled from grown-up from two decades of innovation. The security fabric provides the best automation and innovation in the industry.
Moreover, product revenue growth accelerated to 20%, resulting in revenue of $165 million. Product revenue included a net benefit of $2 million related to the required accounting change from revenue. Excluding this benefit, product revenue growth accelerated to 18%, service revenue grew 22% to $289 million, FortiCare, the traditional support offering grew 26% to $121 million and FortiGuard, our security subscription offering grew 20% to $157 million. Deferred revenue increased 27% to $1.5 billion, average contract length increased 1-month to 26 months and was flat sequentially.