Fortinet Stock Sinks After Q1 Results: Earnings Beat, Revenues In-Line

Fortinet Inc. FTNT released its first-quarter results after Wednesday's closing bell. Here's a look at the key figures from the report. 

The Details: Fortinet reported quarterly adjusted earnings of 58 cents per share, which beat the Street estimate of 53 cents. Quarterly revenue came in at $1.54 billion, in line with analysts’ estimates.

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For the first quarter, Fortinet reported:

• Product Revenue: Product revenue was $459.1 million, an increase of 12.3% compared to $408.9 million for the same quarter of 2024.
• Service Revenue: Service revenue was $1.08 billion, an increase of 14.4% compared to $944.4 million for the same quarter of 2024.
• Billings: Total billings were $1.6 billion for the first quarter of 2025, an increase of 13.5% compared to $1.41 billion for the same quarter of 2024.
• Remaining performance obligations: Remaining performance obligations were $6.49 billion as of March 31, 2025, an increase of 11.7% compared to $5.81 billion in the prior year’s quarter.

“We continue to accelerate our growth strategy by investing in the rapidly expanding Unified SASE and Security Operations markets, while strengthening our leadership in Secure Networking. Leveraging our deep expertise in networking and security convergence, a strong track record of AI-driven innovation, and seamless product development and integration through our FortiOS operating system, we have established ourselves as the leader in organic innovation and will continue setting the industry standard in cybersecurity,” said Ken Xie, CEO of Fortinet.

Outlook: Fortinet raised its fiscal 2025 adjusted EPS guidance to a range of $2.43 to $2.49, versus the $2.47 estimate and affirmed its revenue guidance of between $6.65 billion and $6.85 billion, versus the $6.76 billion estimate.

FTNT Price Action: According to data from Benzinga Pro, Fortinet stock was down 7.37% at $98.86 after-hours Wednesday.  

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