Fortinet, Inc. · FTNT · FY2026 Q3 · Calendar Q4 2026

Fortinet Q3: SASE and AI Security Lift Growth, Guidance Raised

Fortinet's Q3 analysis supports the view that resilient demand and earnings growth can extend into the next year, led by SASE, AI security and OT. The main test is whether service activation, pricing and component availability allow that demand to convert into sustained revenue and margins.

Reported After market closeNASDAQTechnology $127.72B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.91 Consensus $0.86
EPS surprise +5.8% Reported versus consensus
Reported revenue $2.08B Consensus $2.06B
Revenue surprise +0.7% Reported versus consensus

Market reaction

close-to-close (session unavailable)
Stock move -5.9% Event window
SPY move +0.3% Same window
Abnormal move -6.2% Stock minus SPY
Volume 3.1× Versus trailing sessions
Subsequent drift 0.0% Up to 20 sessions
FTNTSPY benchmark

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What changed

Compared with the prior-quarter analysis, Fortinet added the FortiGuard Inline AI Security Service, emphasized FortiLink SASE services and reported slower service-revenue growth because large enterprise deals had not yet activated. Management nevertheless raised full-year guidance and highlighted continued strength in SASE, AI security and OT.

Guidance delta

Management raised full-year 2026 billings, revenue, operating-margin and EPS guidance; service-revenue timing remains a near-term watchpoint.

Key takeaways

  • Management described strong Q3 demand across SASE firewalls, AI-focused security services and OT solutions.
  • The quarter was supported by faster billings growth, record operating margin and higher free cash flow, according to the supplied analysis.
  • Service revenue growth was slower because activation of large enterprise deals was delayed, although service billings and deferred revenue remained robust.

Management priorities

  • Scale FortiGuard Inline AI Security Service and FortiLink SASE services
  • Accelerate service-revenue growth in fiscal 2027
  • Continue investing in AI and ASIC capabilities for high-performance security

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Earnings History

Estimate Beat Miss Match
FTNT EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 2 future estimate-only quarters. Q2 '24 estimate $0.41 Q2 '24 actual $0.57, beat Q3 '24 estimate $0.52 Q3 '24 actual $0.63, beat Q2 '25 estimate $0.59 Q2 '25 actual $0.64, beat Q3 '25 estimate $0.63 Q3 '25 actual $0.74, beat Q4 '25 estimate $0.74 Q4 '25 actual $0.81, beat Q1 '26 estimate $0.62 Q1 '26 actual $0.82, beat Q2 '26 estimate $0.75 Q2 '26 actual $0.90, beat Q3 '26 estimate $0.86 Q3 '26 actual $0.91, beat Q4 '26 estimate $0.83 Q1 '27 estimate $0.79
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Analyst Consensus ?

ConsensusHold67 ratings
Bullish2841.8%
Neutral3349.2%
Bearish69.0%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$174.08Previous close
$55Low
$120.23Average
$210High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 29, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
JP Morgan Underweight UnderweightMaintainOct 23, 2026
Truist Securities Buy BuyMaintainOct 20, 2026
Wells Fargo Underweight UnderweightMaintainOct 15, 2026
Mizuho Underperform UnderperformMaintainOct 15, 2026
TD Cowen Buy BuyMaintainOct 13, 2026
Show 63 more rating actions

Named analyst price targets

Upside is calculated against the persisted previous close $174.08. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Arete ResearchAnalyst unavailable$117$170.93 -32.8%Oct 21, 2026
Truist FinancialJunaid Siddiqui$200$171.47 +14.9%Oct 20, 2026
UBSAnalyst unavailable$200$180.16 +14.9%Oct 15, 2026
Mizuho SecuritiesAnalyst unavailable$160$184.05 -8.1%Oct 15, 2026
RBC CapitalDan Bergstrom$205$195.01 +17.8%Oct 12, 2026
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Company context

Snapshot as of publication

Fortinet, Inc. specializes in delivering extensive, unified, and automated cybersecurity solutions to a global clientele, encompassing the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. At its core, the company offers FortiGate, a powerful platform combining hardware and software licenses that provides a comprehensive suite of security and networking functionalities. This includes firewall capabilities, intrusion prevention, anti-malware defense, virtual private network (VPN) services, application control, web filtering, anti-spam measures, and wide area network (WAN) acceleration. Beyond its flagship product, Fortinet provides a diverse portfolio of specialized security tools. These range from FortiSwitch for secure network switching and FortiAP for robust wireless connectivity, to FortiExtender, a versatile hardware appliance. For centralized network visibility and control, clients utilize FortiAnalyzer for logging, analysis, and reporting, and FortiManager for scalable administration of FortiGate devices.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-10-29T04:04:58.373148+00:00
  2. FN2 earnings calendar · 2026-10-29T01:23:20.584741+00:00
  3. Polygon adjusted daily market bars · 2026-10-29T08:50:42.144580+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-29T08:50:42.141961+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-29. For educational purposes only; not investment advice.