Christiane will then review our financial results for the fourth quarter and the full year of 2025 before providing guidance for the first quarter and full year of 2026. Our GAAP results and GAAP to non-GAAP reconciliations are located in our earnings press release and in the presentation that accompany today's remarks, both of which are posted on our Investor Relations website. The prepared remarks will also be posted on the quarterly earnings section of our Investor Relations website following today's call. Lastly, all references to growth are on a year-over-year basis unless noted otherwise.

Driven by broad-based demand across our platform, our billings increased 18% and revenue growth 15%, driven by product revenue growth of 20%. Our operating margin was strong at 37%, reflecting our continued focus on balancing growth and profitability. Secure Networking billings growth 13%, outperforming the overall secure networking market as we continue to gain market share. Fortinet remains the number one firewall leader with 55% unit market share and the highest product revenue among our cybersecurity peers.

Unified SASE billing growth 40%, representing 27% of the total billing, supporting our belief that Fortinet is the fastest growing SASE leader on the scale. Sovereign SASE enables enterprise and service providers to deploy SASE in their own data centers to meet data privacy, sovereignty, and compliance requirements. We are seeing strong demand in sovereign SASE, and none of our major SASE competitors offer sovereign SASE solutions, making Fortinet's total unified SASE addressable market significantly greater than our peers. AI-driven SecOps billings growth 6% in the fourth quarter and 22% for the full year, while ARR was up 21%.

What went well
  • Q4 billings grew 18% to $2.37B and revenue rose 15% to $1.91B, with product revenue up over 20% to $691M (both hardware and software +20%) and a record-caliber 37.3% non-GAAP operating margin.
  • Full-year 2025 exceeded the Rule of 45 for the sixth consecutive year: billings +16% to $7.55B, revenue +14% to $6.8B, operating income +16% to $2.41B (record 35.5% margin), and EPS +16% to $2.76.
  • Record full-year free cash flow of $2.21B (33% margin; $2.5B adjusted, 37% margin), with a five-year adjusted FCF CAGR above 20%.
  • Unified SASE billings grew 40% (FortiSASE ARR up over 90%), and the combined Unified SASE + SecOps pillars reached 36% of total billings; large-enterprise $1M+ deals grew over 30% with value up over 40%.
  • The Board approved another $1B buyback increase in January, and FY2026 guidance called for billings of $8.4B-$8.6B (+13% at midpoint).
What went wrong
  • AI-driven SecOps billings growth slowed sharply to just 6% in Q4, decelerating from 33% in Q3, even as full-year SecOps grew 22%.
  • Service revenue growth stayed soft at 12% in Q4 (13% for the year), and management again pushed the expected service-growth reacceleration to the second half of 2026.
  • Q1 2026 operating-margin guidance stepped down to 30%-32% (from Q4's 37.3%), reflecting seasonal cost timing and continued infrastructure investment.
  • Total gross margin dipped to 80.3% in Q4 on the shift toward lower-margin product revenue, and Q4 buyback activity was light (~730K shares / $57M) after the heavy Q3 repurchase.

More on Fortinet, Inc.

Reported 2026-02-05 · figures from the Fortinet, Inc. Q4 2025 earnings call.

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