FTNT · Fortinet Q2 FY2026 earnings call record财报电话会记录

“Billings growth 33%, while total revenue increased 26%, propelled by 52% growth in product revenue.”

“Our continued momentum reflects broad-based demand and strong execution across customer segments, industry verticals, geographies, and our integrated and innovative portfolio of solutions, further validating the strength of our platform strategy.”

“We saw persistent high FortiGate demand as customers expanded their network security, including operational technology environments, LAN edge, and AI data centers.”

“Service revenue grew 14% to $1.27 billion, with growth improving from the prior quarter.”

“We believe the first quarter of 2026 marked a trough for our service revenue growth rate, and we anticipate a positive trajectory in our growth rates going forward.”

“In response, enterprises are increasingly upgrading their network security infrastructure to support the demands of AI-driven workloads and growing data volumes, more complex distributed environments, and the need for stronger network segmentation.”

“Non-GAAP operating margin of 38% was a second quarter record, up 490 basis points.”

“Non-GAAP earnings per share increased 41% to $0.90, while GAAP earnings per share grew 44% to $0.82, significantly outpacing our top-line growth, reflecting high-quality earnings supported by disciplined stock-based compensation and continued capital return over the past year.”

“We repurchased $1.9 million shares of common stock for $146 million during the second quarter, and $12.5 million shares for $973 million year to date, which represents an average price for repurchases this year of around $78 per share.”

“For the third quarter, we expect billings in the range of $2.25 billion-$2.35 billion, which at the midpoint represents growth of 27%.”

“For the full year, we expect billings in the range of $9.35 billion-$9.55 billion, which at the midpoint represents growth of 25%.”

“On the other side, yeah, we also feel network security will continue to expanding beyond the traditional enterprise, can be eventually go to like, now with SASE can support in remote work from home, eventually can be in the consumer in some lot of broad area.”