Fortinet, Inc.

Company facts

Industry

Computer Peripheral Equipment, NEC

Headquarters

Sunnyvale, California

Most recent report

10-Q, filed Oct 30, 2026

Incorporated

Delaware

Filings on record

1,003+ filings

On EDGAR

CIK 1262039

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 4 of 11 sections worth reading, with 3 positive, 13 notable, and 7 negative flags.

• Financial Statements (Item 1)

  Balance sheet, cash flow, and notes show major shifts: debt paid, buybacks, inventory jump, and pending securities litigation.
  Notable

  • Deferred revenue rose to $7.93B at Sep 2026 from $7.12B at Dec 2025; remaining performance obligations were $7.98B.
  • Sold marketable equity securities for $115.9M in Q1 2026, recognizing $50.7M gain; remaining equity securities fell to $31.1M.
  • Purchased real estate in US and Brazil for $95.8M in 9M 2026 to expand data center and office space.
  • Repaid $500M 2026 Senior Notes at maturity in March 2026, eliminating that debt and leaving only $500M in 2031 notes.
  • Repurchased 12.5M shares for $972.8M in 9M 2026; $765.8M remained at Sep 2026; board added $1.23B authorization in Oct 2026.
  Negative

  • Consolidated securities class action filed over statements about the 2026 firewall refresh cycle; motion to dismiss pending.

• Management's Discussion (Item 2)

  Full MD&A with detailed financials, segment results, and liquidity analysis for Q3 2026.
  Positive

  • Total revenue up 20% to $2.08B in Q3 2026, product revenue up 37%.
  • Cash from operations up 56% to $3.07B for nine months ended September 30, 2026.
  • Operating margin rose 2.2 points to 33.9% in Q3 2026, driven by revenue outpacing expense growth.
  Notable

  • Global memory chip shortage may delay production and increase costs; price increases implemented.
  • Billings (non-GAAP) up 29% to $2.34B in Q3 2026, a leading indicator of future revenue.
  • Moody's upgraded credit rating to A3 from Baa1 in July 2026, outlook stable.
  • Board approved $1.23B buyback increase in October 2026, extending program to Feb 2028.
  Negative

  • Total gross margin fell 1.8 points to 79.0% in Q3 2026 due to mix shift to lower-margin product revenue.
  • Product gross margin down 3.3 points to 64.4% in Q3 2026 from higher memory chip costs.
  • Inventory purchase commitments surged to $1.93B as of Sep 2026, up from $810.6M at Dec 2025.

• Risk Factors (Item 1A)

  Company-specific quantified risks: 26% AR concentration, 83% Taiwan mfg, $497M debt, $11.48B buyback.
  Notable

  • $497.1 million in Senior Notes outstanding as of September 30, 2026, with covenants and change-of-control repurchase triggers.
  • Stock price ranged from $75.23 to $178.76 per share during the nine months ended September 30, 2026.
  Negative

  • One distributor was 26% of net accounts receivable as of September 30, 2026; six were 63%.
  • Global shortage of memory chips is causing production delays and cost increases.
  • 83% of hardware was manufactured in Taiwan during the three months ended September 30, 2026.

• Unregistered Sales and Repurchases (Item 2)

  New $1.23B buyback authorization and extension to Feb 2028; zero repurchases in Q3 2026.
  Notable

  • Zero shares repurchased in Q3 2026, a sharp pause from prior activity.
  • Total authorized repurchases now $11.48B; $2.0B remained available as of Oct 29, 2026.

What changed: Sep 2026 vs. Jun 2026

About 2% of FTNT's Sep 2026 10-Q is new information. 17 paragraphs were added, 171 changed, and 20 removed. Below are the most important lines SECSift identified.

• Item 2 70
• Item 1 42
• Item 1A 19
• Item 5 3
• Item 4 3
• Item 3 1
• Item 6 1