Fortinet reports strong Q3 revenue growth & SASE adoption surge
Fortinet has reported its financial results for the third quarter ended 30 September 2025, highlighting year-on-year revenue growth and an increase in both product revenue and billings.
Financial performance
The company recorded revenue of USD $1.72 billion for the quarter, representing a 14 per cent increase compared to the same period last year. Product revenue saw an even higher growth rate at 18 per cent year over year, reaching USD $559.3 million. Billings totalled USD $1.81 billion for the quarter, up 14 per cent from the previous year.
Fortinet also achieved a record third quarter generally accepted accounting principles (GAAP) operating margin of 32 per cent, alongside a record non-GAAP operating margin of 37 per cent.
Leadership commentary
Ken Xie, founder, chairman, and chief executive officer, Fortinet, said, "We are pleased with our excellent third quarter results, driven by our leading innovation and customer-first culture resulting in broad-based demand for our solutions across organisations of all sizes. "Building on our leadership in firewall and SD-WAN through our unified FortiOS operating system, FortiSASE has quickly emerged as one of the fastest growing leaders in the SASE market. Fortinet has natively developed the key SASE functions, tightly integrating next-generation firewall, SD-WAN, and SASE functionality into one unified 'New Generation SASE Firewall' solution, providing our customers with maximum flexibility to deploy security access at the edge and giving us a sustainable competitive advantage."
Product and business development
FortiSASE, the company's secure access service edge (SASE) offering, is now Fortinet's fastest-growing solution at scale. During the third quarter, billings for FortiSASE increased by more than 100 per cent year over year. The company attributes this to an easy migration path, which allows existing software-defined wide area network (SD-WAN) customers to enable SASE functionality in a matter of minutes.
Meanwhile, Fortinet has launched the Secure AI Data Centre solution. Described as the industry's first end-to-end framework for artificial intelligence (AI) workloads, the solution is designed to deliver high-capacity connectivity and reduce energy consumption by up to 69 per cent compared to alternative offerings.
The company reports rapid adoption in AI-powered solutions, underpinned by ongoing investment in research and development. Fortinet currently supports over 20 AI-driven solutions and holds more than 500 issued and pending AI patents.
Industry recognition
Fortinet was recognised as a Leader in the inaugural 2025 Gartner Magic Quadrant for Hybrid Mesh Firewall, achieving the highest ranking for ability to execute in its category.
The company was also recently named as one of Newsweek's Most Reliable Companies, securing the 16th place out of 300 companies across all industries.
Guidance and outlook
For the fourth quarter of 2025, Fortinet expects revenue to be in the range of USD $1.825 billion to USD $1.885 billion, with billings anticipated between USD $2.185 billion and USD $2.285 billion. The non-GAAP gross margin for the quarter is forecast to be between 79.0 per cent and 80.0 per cent, and the non-GAAP operating margin is expected to range from 34.5 per cent to 35.5 per cent. The company projects diluted non-GAAP net income per share between USD $0.73 and USD $0.75, based on a diluted share count ranging from 751 million to 755 million and a non-GAAP effective tax rate of 18 per cent.
For the full fiscal year 2025, Fortinet currently forecasts revenue in the range of USD $6.720 billion to USD $6.780 billion and service revenue between USD $4.575 billion and USD $4.595 billion. Expected billings are in the range of USD $7.370 billion to USD $7.470 billion. The company anticipates a non-GAAP gross margin between 80.25 per cent and 80.75 per cent, and a non-GAAP operating margin between 34.5 per cent and 35.0 per cent. Projected diluted non-GAAP net income per share is between USD $2.66 and USD $2.70, with a diluted share count forecast between 764 million and 768 million shares and an assumed non-GAAP effective tax rate of 18 per cent.
Fortinet specified that its guidance for non-GAAP financial measures excludes stock-based compensation, amortisation of acquired intangible assets, settlements of litigation, gains on intellectual property and bargain purchases, gains from equity method investments, and a tax adjustment for the non-GAAP effective tax rate, citing that a reconciliation to the corresponding GAAP measures is not available without unreasonable effort due to uncertainties regarding these items.
The company reiterated that these forward-looking statements are subject to uncertainties and actual results may differ materially due to various factors.
