Fortinet posted strong second-quarter results that beat market expectations this year. Boosted by growing demand for artificial intelligence (AI) security, sales of key products and solutions, including next-generation firewalls, increased.
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 to $773 million (about 1.1131 trillion won), up 52% in the same period, as sales of network security products combining next-generation firewalls, software-defined wide area network (SD-WAN), and secure access service edge (SASE) increased.
As corporations moved to build AI infrastructure, investment in security equipment to protect data centers and corporate networks also expanded, and billings grew 33% to $2.37 billion (about 3.4128 trillion won).
The generally accepted accounting principles (GAAP) operating margin was 34%, and the non-GAAP operating margin was 38%, both a record high for the second quarter. Free cash flow totaled $966 million (about 1.391 trillion won), more than tripling.
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). It raised its full-year revenue outlook to 19% growth from a year earlier.