Affirm stock soars as Q1 earnings smash expectations, guidance lift
SUNNYVALE, Calif. - Fortinet (NASDAQ:FTNT) shares fell 7% after the cybersecurity leader reported third-quarter earnings that beat expectations but issued fourth-quarter revenue guidance that fell short of analyst estimates at the midpoint.
The company reported third-quarter adjusted earnings per share of $0.74, significantly exceeding the analyst consensus of $0.63. Revenue rose 14% YoY to $1.72 billion, slightly above the $1.7 billion consensus estimate. Product revenue showed particularly strong growth, increasing 18% YoY to $559.3 million. The company achieved record third-quarter GAAP operating margin of 32% and non-GAAP operating margin of 37%.
Despite the strong quarterly performance, investors focused on Fortinet ’s fourth-quarter revenue guidance of $1.825 billion to $1.885 billion (midpoint $1.855 billion), which fell below the analyst consensus of $1.88 billion. The company’s EPS guidance of $0.73 to $0.75 was more positive, coming in above the $0.67 consensus.
"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 organizations of all sizes," said Ken Xie, Founder, Chairman and CEO of Fortinet.
The company highlighted that its FortiSASE solution is the fastest-growing SASE solution at scale, with third-quarter billings increasing by over 100% YoY. Fortinet also recently launched its Secure AI Data Center solution, which the company describes as the industry’s first end-to-end framework designed specifically for AI workloads.
For the full fiscal year 2025, Fortinet expects revenue between $6.72 billion and $6.78 billion, with non-GAAP operating margin between 34.5% and 35%. The company projects adjusted EPS for the year to be between $2.66 and $2.70.
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