Fortinet Inc (NASDAQ:FTNT) stock rose 3.76% (As on February 6, 11:34:56 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that exceeded analyst expectations and provided an optimistic outlook for 2026. The company’s billings, a key indicator of future revenue, grew 18% to $2.37 billion, with Unified SASE billings jumping 40%. Fortinet continues to strengthen its market position, maintaining its status as the top firewall provider with 55% unit market share. The company’s performance in 2025 was solid across all metrics, with full-year revenue growing 14% to $6.8 billion and product revenue increasing 16% to $2.22 billion. The firewall leadership is driven by FortiOS, which unified the networking and security, and the FortiASIC technology, delivers 5x to 10x better performance than competitors while lowering the total cost of ownership and energy consumption, which provide a large advantage and a scale — and securing AI data center. FTNT will introduce the FortiOS 8.0 at the Fortinet’s Annual Customer and Partner Conference, Accelerate in March, featuring significant and new capability in security and networking, especially in AI security, such as agentic AI security in enterprise, plus a new bundled SD-WAN and SASE service. Unified SASE billing grew 40% representing 27% of the total billing driven by growth in cloud security solutions. In the fourth quarter, the number of deals greater than $1 million increased by over 30%, while the total deal value grew by over 40%.

Moreover, for the quarter, operating margin was strong at 37%. Secure networking billing grew 13%, outperforming the overall secure networking market as the company continues to gain market share. Fortinet remained the #1 firewall leader with a 55% unit market share and the highest product revenue among our cybersecurity security peers.

FTNT in the fourth quarter of FY25 has reported the adjusted earnings per share of $0.81, beating the analysts’ estimates for the adjusted earnings per share of $0.74. The company had reported the adjusted revenue growth of 15 percent to $1.91 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.86 billion. Product revenue showed particularly strong growth, increasing 20% YoY to $691 million.

For fiscal year 2026, Fortinet forecasts revenue between $7.5 billion and $7.7 billion, with the midpoint of $7.6 billion exceeding the analyst consensus of $7.5 billion. The company also announced a $1 billion expansion of its share repurchase program.

For the first quarter of 2026, Fortinet expects revenue between $1.7 billion and $1.76 billion and billings ranging from $1.77 billion to $1.87 billion.