Fortinet, Inc.

Company facts

Industry

Computer Peripheral Equipment, NEC

Headquarters

Sunnyvale, California

Most recent report

10-Q, filed Jul 30, 2026

Incorporated

Delaware

Filings on record

1,002+ filings

On EDGAR

CIK 1262039

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Jun 2026 10-Q

SECSift found 3 of 11 sections worth reading, with 9 positive, 7 notable, and 4 negative flags.

• Financial Statements (Item 1)

  Full financial statements and notes with real company-specific numbers and litigation update.
  Notable

  • Remaining performance obligations $7.73B at June 2026, up from $7.45B at March 2026.
  • Board increased share repurchase authorization by $1B in Jan 2026, now $10.25B.
  Negative

  • Securities class action consolidated; amended complaint filed Apr 2026, motion to dismiss filed Jun 15, 2026.

• Management's Discussion (Item 2)

  Core MD&A with detailed financial results and management discussion; substance.
  Positive

  • Total revenue grew 26% to $2.05B in Q2 2026, beating prior growth rates.
  • Product revenue surged 52% to $773M in Q2 2026, driven by AI infrastructure demand and pricing.
  • Service revenue rose 14% to $1.27B in Q2 2026, with strength in security subscriptions and support.
  • Gross profit increased 25% to $1.64B in Q2 2026, slightly behind revenue growth.
  • Operating income jumped 51% to $689M in Q2 2026, as revenue outpaced expense growth.
  • Operating margin expanded 5.6pts to 33.7% in Q2 2026, reflecting strong operating leverage.
  • Cash and investments totaled $4.47B at June 30, 2026, up from $3.92B at year-end 2025.
  • Operating cash flow was $2.12B for H1 2026, up 61% from $1.32B in H1 2025.
  • Moody's upgraded Fortinet's credit rating to A3 from Baa1 with stable outlook in July 2026.
  Notable

  • Deferred revenue reached $7.68B at June 30, 2026, up 8% from Dec 2025, signaling future revenue.
  • Inventory purchase commitments surged to $1.67B as of June 30, 2026, more than doubling from $810.6M at Dec 2025.
  Negative

  • Total gross margin fell 0.5pts to 80.2% in Q2 2026 due to product mix shift to lower-margin hardware.

• Risk Factors (Item 1A)

  Multiple company-specific quantified risks: 26% AR concentration, 82% Taiwan manufacturing, FortiManager vuln, new AI risks, stock range $75-$155.
  Notable

  • New AI risk factors: AI initiatives may fail, AI could accelerate attacks, regulatory scrutiny increases.
  • Stock price ranged $75.23-$155.42 in H1 2026, wide volatility noted in filing.
  • Board added $1.0B to buyback in Jan 2026; $765.8M remained as of June 30.
  Negative

  • One distributor 26% of net AR, six distributors 64%; high concentration risk for Q2 2026.
  • 82% of hardware made in Taiwan in Q2 2026, up from 76% in Q1; geopolitical risk heightened.

What changed: Jun 2026 vs. Mar 2026

About 4% of FTNT's Jun 2026 10-Q is new information. 29 paragraphs were added, 173 changed, and 36 removed. Below are the most important lines SECSift identified.

• Item 2 76
• Item 1 41
• Item 1A 27
• Item 5 5
• Item 4 3
• Item 3 1
• Item 6 1