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Fortinet

FTNT Q1 2025 Earnings

Reported May 7, 2025 at 4:11 PM ET · SEC Source

Q1 25 EPS

$0.58

BEAT +8.57%

Est. $0.53

Q1 25 Revenue

$1.54B

MISS 0.07%

Est. $1.54B

vs S&P Since Q1 25

-31.6%

TRAILING MARKET

FTNT -3.5% vs S&P +28.1%

Market Reaction

Did FTNT Beat Earnings? Q1 2025 Results

Fortinet posted a strong but mixed first quarter for 2025, delivering an earnings beat that was quickly overshadowed by a cautious forward outlook, sending shares tumbling more than 12% in the aftermath. The cybersecurity giant earned $0.58 per share… Read more Fortinet posted a strong but mixed first quarter for 2025, delivering an earnings beat that was quickly overshadowed by a cautious forward outlook, sending shares tumbling more than 12% in the aftermath. The cybersecurity giant earned $0.58 per share on a non-GAAP basis, clearing the $0.53 consensus estimate by 8.57%, while revenue of $1.54 billion grew 13.8% year over year but landed just 0.07% shy of Wall Street's expectations. The headline profit performance was fueled in part by record non-GAAP operating margin expansion of 570 basis points to 34.2%, reflecting disciplined cost controls even as Fortinet accelerated its pivot toward higher-value recurring revenue streams, Unified SASE ARR reached $1.15 billion, up 25.7%, while Security Operations ARR climbed 30.3% to $434.50 million. This pattern of strong fundamentals paired with market skepticism around guidance is not new for Fortinet; for Q2, management guided revenue of $1.59–$1.65 billion, with full-year 2025 revenue expected in the range of $6.65–$6.85 billion.

Key Takeaways

  • • Non-GAAP operating margin expanded 570 basis points year over year to record 34.2%
  • • Unified SASE ARR grew 25.7% YoY to $1.15 billion
  • • Security Operations ARR grew 30.3% YoY to $434.5 million
  • • Service revenue grew 14.4% YoY, comprising ~70% of total revenue
  • • Record Q1 free cash flow of $782.8 million
  • • Record Q1 cash flow from operations of $863.3 million
  • • Remaining performance obligations grew 11.7% to $6.49 billion
24/7 Wall St

FTNT YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

FTNT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 22 Q4 25

“We are pleased to report another strong quarter as non-GAAP operating margin increased 570 basis points year over year to a first quarter record of 34%, while billings grew 14% year over year.”

— Ken Xie, Q1 2025 Earnings Press Release

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