Fortinet maintains structural gross margin resilience above 80% while successfully scaling operating income to $580 million in 2026Q1 through effective SG&A management.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Sales/Revenue | 7.11B | 6.8B | 5.96B | 5.3B | 4.42B | 3.34B | 2.59B | 2.16B | 1.8B | 1.49B | 1.28B | 1.01B | 770.36M | 615.3M | 533.64M | 433.58M | 324.7M | 252.12M | 211.79M | 155.37M |
| Revenue Growth % | 15.75% | 14.17% | 12.27% | 20.09% | 32.17% | 28.82% | 19.94% | 19.86% | 20.72% | 17.21% | 26.37% | 31.01% | 25.2% | 15.3% | 23.08% | 33.53% | 28.79% | 19.04% | 36.32% | - |
| Cost of Goods Sold | 1.37B | 1.3B | 1.16B | 1.24B | 1.08B | 783M | 570M | 505.9M | 450.4M | 385.3M | 337.8M | 286.78M | 231.01M | 180.64M | 147.42M | 113.6M | 85.21M | 69.97M | 65.47M | 56.65M |
| COGS % of Revenue | - | 19.16% | 19.44% | 23.32% | 24.56% | 23.43% | 21.97% | 23.39% | 24.96% | 25.77% | 26.49% | 28.41% | 29.99% | 29.36% | 27.63% | 26.2% | 26.24% | 27.76% | 30.91% | 36.46% |
| Gross Profit | 5.74B | 5.5B | 4.8B | 4.07B | 3.33B | 2.56B | 2.02B | 1.66B | 1.35B | 1.11B | 937.6M | 722.49M | 539.36M | 434.65M | 386.22M | 319.98M | 239.49M | 182.14M | 146.32M | 98.71M |
| Gross Margin % | 80.67% | 80.84% | 80.56% | 76.68% | 75.44% | 76.57% | 78.03% | 76.61% | 75.04% | 74.23% | 73.51% | 71.59% | 70.01% | 70.64% | 72.37% | 73.8% | 73.76% | 72.24% | 69.09% | 63.54% |
| Gross Profit Growth % | - | 14.56% | 17.96% | 22.06% | 30.22% | 26.42% | 22.17% | 22.37% | 22.04% | 18.34% | 29.77% | 33.95% | 24.09% | 12.54% | 20.7% | 33.61% | 31.49% | 24.48% | 48.23% | - |
| Operating Expenses | 3.53B | 3.42B | 2.99B | 2.83B | 2.36B | 1.91B | 1.49B | 1.31B | 1.12B | 999.8M | 894.7M | 707.61M | 480.03M | 362.56M | 285.74M | 231.07M | 184.15M | 156.81M | 141.39M | 120.29M |
| OpEx % of Revenue | - | 50.24% | 50.28% | 53.28% | 53.49% | 57.11% | 57.53% | 60.38% | 62.05% | 66.88% | 70.15% | 70.11% | 62.31% | 58.93% | 53.55% | 53.29% | 56.71% | 62.2% | 66.76% | 77.42% |
| Selling, General & Admin | 2.67B | 2.58B | 2.28B | 2.22B | 1.86B | 1.49B | 1.19B | 1.03B | 875.3M | 788.9M | 707.6M | 541.88M | 357.15M | 259.9M | 204.67M | 167.5M | 134.35M | 114.61M | 104.36M | 92.7M |
| SG&A % of Revenue | - | 37.96% | 38.33% | 41.8% | 42% | 44.56% | 45.92% | 47.57% | 48.5% | 52.77% | 55.48% | 53.69% | 46.36% | 42.24% | 38.35% | 38.63% | 41.38% | 45.46% | 49.27% | 59.67% |
| Research & Development | 830.9M | 815.5M | 716.8M | 613.8M | 512.4M | 424.2M | 341.4M | 277.1M | 244.5M | 210.6M | 183.1M | 158.13M | 122.88M | 102.66M | 81.08M | 63.58M | 49.8M | 42.2M | 37.03M | 27.59M |
| R&D % of Revenue | - | 11.99% | 12.04% | 11.57% | 11.6% | 12.69% | 13.16% | 12.81% | 13.55% | 14.09% | 14.36% | 15.67% | 15.95% | 16.68% | 15.19% | 14.66% | 15.34% | 16.74% | 17.49% | 17.76% |
| Other Operating Expenses | 2M | 20M | -4.6M | -4.6M | -4.6M | -4.6M | -40.2M | 0 | 0 | 300K | 4M | 7.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.21B | 2.08B | 1.8B | 1.24B | 969.6M | 650.4M | 531.8M | 351M | 234.4M | 109.8M | 42.9M | 14.88M | 59.32M | 72.09M | 100.47M | 88.9M | 55.34M | 25.33M | 4.93M | -21.58M |
| Operating Margin % | 31.06% | 30.62% | 30.28% | 23.4% | 21.95% | 19.46% | 20.5% | 16.23% | 12.99% | 7.34% | 3.36% | 1.47% | 7.7% | 11.72% | 18.83% | 20.5% | 17.04% | 10.05% | 2.33% | -13.89% |
| Operating Income Growth % | - | 15.45% | 45.31% | 28% | 49.08% | 22.3% | 51.51% | 49.74% | 113.48% | 155.94% | 188.36% | -74.92% | -17.71% | -28.25% | 13.02% | 60.65% | 118.45% | 414.19% | 122.83% | - |
| EBITDA | 2.46B | 2.23B | 1.93B | 1.35B | 1.07B | 734.8M | 600.6M | 412.6M | 290.1M | 165.3M | 91.4M | 46.47M | 81.35M | 87.71M | 112.04M | 95.89M | 61.04M | 31.27M | 9.16M | -17.42M |
| EBITDA Margin % | 34.58% | 32.85% | 32.34% | 25.53% | 24.31% | 21.99% | 23.15% | 19.08% | 16.08% | 11.06% | 7.17% | 4.6% | 10.56% | 14.26% | 21% | 22.12% | 18.8% | 12.4% | 4.33% | -11.21% |
| EBITDA Growth % | 18.99% | 15.98% | 42.21% | 26.13% | 46.15% | 22.34% | 45.56% | 42.23% | 75.5% | 80.85% | 96.7% | -42.88% | -7.25% | -21.71% | 16.84% | 57.11% | 95.2% | 241.33% | 152.58% | - |
| D&A (Non-Cash Add-back) | 250.2M | 152M | 122.8M | 113.4M | 104.3M | 84.4M | 68.8M | 61.6M | 55.7M | 55.5M | 48.5M | 31.59M | 22.03M | 15.62M | 11.56M | 6.99M | 5.7M | 5.93M | 4.23M | 4.15M |
| EBIT | 2.36B | 2.31B | 2.08B | 1.35B | 973.5M | 643.3M | 541.7M | 386M | 234.4M | 110.1M | 46.9M | 22.48M | 59.32M | 72.09M | 100.47M | 88.9M | 55.34M | 25.33M | 4.93M | -21.58M |
| Net Interest Income | 131.5M | 142.2M | 135.2M | 98.7M | -600K | -10.4M | 17.7M | 42.5M | 26.5M | 13.5M | 7.3M | 5.29M | 5.39M | 5.31M | 5.01M | 3.52M | 1.81M | 1.98M | 2.61M | 3.51M |
| Interest Income | 150.9M | 162.3M | 155.2M | 119.7M | 17.4M | 4.5M | 17.7M | 42.5M | 26.5M | 13.5M | 7.3M | 5.29M | 5.39M | 5.31M | 5.01M | 3.52M | 1.81M | 1.98M | 2.61M | 3.51M |
| Interest Expense | 19.4M | 20.1M | 20M | 21M | 18M | 14.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 211M | 210.5M | 225.7M | 50.5M | -82.2M | -29.6M | 9.9M | 35M | 19.9M | 14.2M | 200K | 2.13M | 2.23M | 3.85M | 4.52M | 3.17M | 1M | 2.18M | 4.32M | 1.52M |
| Pretax Income | 2.42B | 2.29B | 2.03B | 1.29B | 887.4M | 620.8M | 541.7M | 386M | 254.3M | 124M | 43.1M | 17M | 61.55M | 75.94M | 105M | 92.07M | 56.34M | 27.51M | 9.25M | -20.06M |
| Pretax Margin % | 34.03% | 33.72% | 34.07% | 24.35% | 20.09% | 18.57% | 20.88% | 17.85% | 14.09% | 8.29% | 3.38% | 1.68% | 7.99% | 12.34% | 19.68% | 21.24% | 17.35% | 10.91% | 4.37% | -12.91% |
| Income Tax | 464.6M | 439.1M | 283.9M | 143.8M | 30.8M | 14.1M | 53.2M | 54.3M | -80.6M | 92.6M | 10.9M | 9.02M | 36.21M | 31.67M | 38.16M | 29.58M | 15.1M | -32.67M | 1.89M | 1.78M |
| Effective Tax Rate % | 19.2% | 19.15% | 13.99% | 11.13% | 3.47% | 2.27% | 9.82% | 14.07% | -31.69% | 74.68% | 25.29% | 53.03% | 58.82% | 41.7% | 36.34% | 32.13% | 26.79% | -118.73% | 20.41% | -8.88% |
| Net Income | 1.95B | 1.85B | 1.75B | 1.15B | 857.3M | 606.8M | 488.5M | 331.7M | 334.9M | 31.4M | 32.2M | 7.99M | 25.34M | 44.27M | 66.84M | 62.49M | 41.24M | 60.18M | 7.36M | -21.84M |
| Net Margin % | 27.49% | 27.26% | 29.3% | 21.64% | 19.41% | 18.16% | 18.83% | 15.34% | 18.56% | 2.1% | 2.52% | 0.79% | 3.29% | 7.2% | 12.52% | 14.41% | 12.7% | 23.87% | 3.48% | -14.06% |
| Net Income Growth % | 4% | 6.2% | 52.05% | 33.89% | 41.28% | 24.22% | 47.27% | -0.96% | 966.56% | -2.48% | 303.16% | -68.48% | -42.76% | -33.76% | 6.95% | 51.51% | -31.46% | 717.32% | 133.71% | - |
| Net Income (Continuing) | 1.95B | 1.85B | 1.75B | 1.15B | 856.6M | 606.7M | 488.5M | 331.7M | 334.9M | 31.4M | 32.2M | 7.99M | 25.34M | 44.27M | 66.84M | 62.49M | 41.24M | 60.18M | 7.36M | -21.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 16.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.63 | 2.43 | 2.26 | 1.46 | 1.06 | 0.73 | 0.58 | 0.38 | 0.38 | 0.04 | 0.04 | 0.01 | 0.03 | 0.05 | 0.08 | 0.08 | 0.05 | 0.09 | 0.01 | -0.03 |
| EPS Growth % | 6.58% | 7.52% | 54.79% | 37.74% | 45.21% | 25.86% | 52.63% | 0% | 955.56% | 0% | 260% | -66.67% | -42.31% | -35% | 5.26% | 43.4% | -42.58% | 724.11% | 134.46% | - |
| EPS (Basic) | - | 2.44 | 2.28 | 1.47 | 1.08 | 0.74 | 0.60 | 0.39 | 0.39 | 0.04 | 0.04 | 0.01 | 0.03 | 0.05 | 0.08 | 0.08 | 0.06 | 0.10 | 0.01 | -0.04 |
| Diluted Shares Outstanding | 742.8M | 748M | 771.9M | 788.2M | 805.3M | 835.5M | 838.5M | 875M | 871M | 890.39M | 881.5M | 880.71M | 846.45M | 840.91M | 831.64M | 818.9M | 782.03M | 652.19M | 655.77M | 671.22M |
| Basic Shares Outstanding | 738.8M | 743.1M | 764.4M | 778.6M | 791.4M | 816M | 821M | 855M | 845.5M | 871.58M | 863M | 851.92M | 819.15M | 812.17M | 790.37M | 762.9M | 703.63M | 623.37M | 623.37M | 574.93M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Hardware refresh cycle volatility
According to recent financial disclosures, Fortinet's revenue growth has demonstrated a resilient expansion, reaching 20.1% in 2026Q1, which suggests that the company is successfully navigating the post-pandemic digestion phase while maintaining double-digit top-line momentum despite broader enterprise capital expenditure caution across the networking security sector.
The acceleration to 20.1% revenue growth in the most recent quarter indicates that the company's strategic pivot toward Unified SASE and SecOps may be gaining traction. Investors should monitor whether this growth is driven by new customer acquisition or simply the recurring service revenue tailwinds from the existing installed base.
As reported in quarterly filings, Fortinet consistently maintains gross margins exceeding 80%, a performance level that underscores the competitive advantage of its proprietary FortiASIC hardware architecture compared to peers like Palo Alto Networks, which rely more heavily on commodity hardware and software-defined security solutions.
The ability to sustain these margins suggests significant pricing power and operational efficiency in manufacturing. This structural advantage warrants further investigation into whether potential shifts toward cloud-delivered security services could eventually compress these margins if the hardware-attach model faces long-term secular headwinds.
Based on the provided income statement data, operating income has scaled effectively, reaching $580 million in 2026Q1, which reflects management's ability to manage SG&A expenses relative to gross profit growth as the company transitions toward a more software-centric and service-heavy revenue mix over time.
The operating margin expansion to 31.4% in the latest quarter suggests that the company is successfully leveraging its existing sales and marketing infrastructure. This trend appears to indicate that the firm is not required to increase overhead linearly to capture incremental revenue, supporting a favorable outlook on profitability.
Analysis of the company's financial statements reveals that share-based compensation remains a consistent line item, totaling $72.5 million in 2026Q1, which investors should carefully reconcile against GAAP net income to ensure that reported EPS growth is not being artificially inflated by equity-based dilution.
While the company shows strong net income growth, the persistent use of SBC warrants further investigation into the true cash-generative capacity of the business. Analysts should monitor the relationship between SBC and free cash flow to determine if the reported earnings quality remains robust in future periods.
Despite strong headline figures, the company's reliance on hardware refresh cycles, as noted in recent SEC filings, presents a potential vulnerability if enterprise customers continue to shift toward cloud-native security architectures that bypass the need for the specialized physical appliances that drive Fortinet's core revenue.
Short-term volatility in billings may indicate that the market is overestimating the durability of the on-premises hardware model. Investors should monitor whether the company's SASE pivot can sufficiently offset a potential decline in traditional firewall appliance demand during periods of tightening corporate IT budgets.
Quick answers to the most common questions about buying FTNT stock.
For fiscal year 2025, Fortinet, Inc. (FTNT) reported total revenue of $6.80B. This represents a 4276.5% increase compared to $155.4M in 2007.
Fortinet, Inc. (FTNT) is profitable, generating $1.85B in net income for the fiscal year ending 2025 with a net profit margin of 27.3%.
Fortinet, Inc. (FTNT) reported an operating income of $2.08B, resulting in an operating profit margin of 30.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Fortinet, Inc. (FTNT) generated $5.50B in gross profit for the year, representing a gross profit margin of 80.8%. This demonstrates the company's core pricing power and production efficiency.