Fortinet Q3 FY2026: revenue up 20.5%, EPS beats, gross margin slips
Fortinet beat the non-GAAP EPS consensus and grew revenue 20.5%, and management raised its billings outlook for the third time this year. The blemish is margin: gross margin fell to 79.0% as fast-growing hardware outran higher-margin service revenue. Read the scorecard as a growth story with a mix problem, then check the guidance arithmetic and the inventory build behind the product surge.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $0.86, up from $0.62, and non-GAAP EPS was $0.91. Against the $0.8739 consensus, that is a beat of about $0.04 a share, or 4.1%. The gap between the GAAP and non-GAAP figures is mostly $82.0 million of stock-based compensation.
Revenue came in at $2.08 billion, up 20.5% from $1.72 billion a year ago. Product revenue did the heavy lifting, rising 36.8% to $765.0 million, while service revenue grew 12.7% to $1.31 billion. That mix is exactly why the top line looks stronger than the margin line.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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