Fortinet posted strong second-quarter results that beat market expectations this year as demand for artificial intelligence (AI) security expanded, boosting sales of key products and solutions, including next-generation firewalls.
Fortinet said on the 3rd that second-quarter revenue rose 26% from a year earlier to $2.05 billion (about 2.952 trillion won). Of that, product revenue came in at $773 million (about 1.1131 trillion won), up 52% over the same period, as sales increased for network security products that combine next-generation firewalls, software-defined wide area network (SD-WAN), and secure access service edge (SASE).
As corporations moved to build AI infrastructure, investments in security equipment to protect data centers and corporate networks also expanded, and, as a result, billings grew 33% to $2.37 billion (about 3.4128 trillion won).
The GAAP operating margin was 34%, and the non-GAAP operating margin was 38%, both hitting a record high for the second quarter. Free cash flow more than tripled to $966 million (about 1.391 trillion won).
Fortinet guided third-quarter revenue of $2.01 billion to $2.1 billion (about 2.8944 trillion to 3.024 trillion won) and full-year revenue of $8.02 billion to $8.18 billion (about 11.5488 trillion to 11.7792 trillion won). The full-year outlook was revised up to 19% growth from a year earlier.