Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the second quarter ended June 30, 2025. reporting revenue of $1.63 billion, up 14% year-over-year.
SASE Growth
The company’s unified SASE platform achieved 22% growth in annual recurring revenue (ARR), while cybersecurity operations revenue increased 35% year-over-year.
Billings grew 15% to reach $1.78 billion. GAAP operating margin stood at 28%, while non-GAAP operating margin reached 33%. The company also raised its full-year 2025 billing outlook by $100 million.
Expanding Firewalls
Commenting on the results, Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet, said:
“Our strong second quarter performance and consistent track record of growth are a direct result of our continued innovation and customer-first strategy, enabling us to beat our billings guidance for the quarter and raise our full year billings outlook”
He added that Fortinet is the industry leader in network security, with the most deployed firewalls worldwide, the New-Generation SASE Firewall, and recognized leadership in the 2025 Gartner® Magic Quadrant™ for SASE Platforms.
He highlighted the company’s AI-driven security approach, the advantage of the unified FortiOS operating system, and leadership across five separate Gartner® Magic Quadrant™ reports.
Q3 Outlook
Fortinet expects for the third quarter of 2025 revenue in the range of $1.67 billion to $1.73 billion, with billings between $1.76 billion and $1.84 billion. The company anticipates a non-GAAP gross margin in the range of 80% to 81%, and a non-GAAP operating margin between 32.5% and 33.5%. Diluted non-GAAP earnings per share are expected to range between $0.62 and $0.64, based on a non-GAAP effective tax rate of 18% and a diluted share count of 772 to 776 million.
Full-Year 2025 Outlook
For the full fiscal year 2025, Fortinet projects total revenue between $6.675 billion and $6.825 billion, with service revenue ranging from $4.55 billion to $4.65 billion. Total billings are expected to be between $7.325 billion and $7.475 billion. The company expects a non-GAAP gross margin in the range of 79% to 81%, with a non-GAAP operating margin of 32% to 33.5%. Diluted non-GAAP EPS is expected to be in the range of $2.47 to $2.53, based on a non-GAAP effective tax rate of 18% and a diluted share count of 773 to 777 million.
Strategic Achievements
During the year, Fortinet was recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for SASE Platforms, ranking #1 in the Critical Capabilities for SASE Platforms report for the Secure Branch Network Modernization use case, and remaining the only vendor included in five different network security Magic Quadrant™ reports.
The company expanded its FortiCloud platform with three new natively integrated services: FortiIdentity, FortiDrive, and FortiConnect. Fortinet was also recognized as the Overall Leader in the Westlands Advisory IT/OT Network Protection Platform Navigator 2025™ report for the third consecutive year, and named a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure for the second year in a row.
Customers reaffirmed their trust in Fortinet by recognizing the company as a Gartner Peer Insights™ Customers’ Choice for SD-WAN for the sixth consecutive year and for Endpoint Protection for the third consecutive year. The company’s innovation engine continues to accelerate, as Fortinet surpassed 1,400 issued patents worldwide, including over 500 AI-related patents, driven by strong investments in research and development.
