S&P 500
7,322.40
+0.63%
Dow Jones
49,735.40
+0.85%
Nasdaq 100
28,412.00
+1.05%
Russell 2000
2,884.92
+1.52%
FTSE 100
10,438.20
+1.69%
Nikkei 225
62,052.50
+2.19%
Fortinet

FTNT Q3 2022 Earnings

Reported Nov 2, 2022 at 4:09 PM ET · SEC Source

Q3 22 EPS

$0.33

BEAT +22.22%

Est. $0.27

Q3 22 Revenue

$1.15B

BEAT +2.35%

Est. $1.12B

vs S&P Since Q3 22

-5.2%

TRAILING MARKET

FTNT +89.9% vs S&P +95.1%

Market Reaction

Did FTNT Beat Earnings? Q3 2022 Results

Fortinet delivered a notably strong third quarter, posting non-GAAP diluted EPS of $0.33 against a consensus estimate of $0.27, a beat of 22.22%, while revenue of $1.15 billion topped the $1.12 billion estimate by 2.35% and grew 32.5% year over year.… Read more Fortinet delivered a notably strong third quarter, posting non-GAAP diluted EPS of $0.33 against a consensus estimate of $0.27, a beat of 22.22%, while revenue of $1.15 billion topped the $1.12 billion estimate by 2.35% and grew 32.5% year over year. The results were powered by broad-based demand across both product and service lines, with service revenue reaching $680.80 million and reflecting a growing recurring revenue base that underpinned margin expansion, as non-GAAP operating margin widened to 28.3% from 25.8% a year ago. Billings of $1.41 billion and deferred revenue of $4.19 billion pointed to healthy forward visibility, though the market's reaction was complicated by Q4 billings guidance that fell short of analyst expectations, with management citing a slowdown in closing large deals amid broader enterprise spending caution. Looking ahead, Fortinet guided Q4 revenue of $1.27 to $1.31 billion and full-year 2022 revenue of $4.41 to $4.45 billion, with non-GAAP EPS of $1.13 to $1.15 for the full year.

Key Takeaways

  • • 32.6% year-over-year revenue growth outpacing industry growth rates
  • • Strong product revenue growth of 39% driven by cybersecurity demand
  • • Service revenue growth of 28.4% reflecting growing recurring revenue base
  • • Deferred revenue growth of 35% to $4.19 billion indicating future revenue visibility
  • • Non-GAAP operating margin expansion to 28.3% from 25.8% year over year
  • • Convergence of security and networking driving platform adoption
24/7 Wall St

FTNT YoY Financials

Q3 2022 vs Q3 2021, source: SEC Filings

24/7 Wall St

FTNT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 22 Q4 25

“We continued to gain market share in the large addressable and fast-growing cybersecurity industry. Revenue and billings growth of over 30% in the third quarter significantly outpaced industry growth rates.”

— Ken Xie, Q3 2022 Earnings Press Release

Back to FTNT Stock Page