## Fortinet Exceeds Q3 Expectations, Boosts Buyback Program, and Offers Positive Outlook
Fortinet Inc. (FTNT), a prominent player in the cybersecurity landscape, delivered strong third-quarter financial results, exceeding analyst expectations and signaling a healthy growth trajectory. The company reported revenue of $1.51 billion, surpassing the consensus estimate of $1.48 billion. Adjusted earnings per share also came in above expectations at 63 cents, compared to the anticipated 52 cents.
This positive performance was driven by consistent growth across various segments. Total revenue climbed 13% year-over-year, with product revenue increasing by 1.7% to $473.9 million and service revenue surging by 19.1% to $1.03 billion. Billings for the quarter reached $1.58 billion, marking a 6.1% year-over-year increase.
Fortinet’s robust financial performance was further bolstered by its strong cash flow generation. The company reported $608.1 million in cash flow from operations and $571.8 million in free cash flow during the quarter. As of the end of the third quarter, Fortinet held $2.49 billion in cash and cash equivalents.
“Our investments in the fast-growing markets of Unified SASE and Security Operations generated strong results as we continued to gain market share in Secure Networking,” stated Ken Xie, Fortinet’s founder, chairman, and CEO. This emphasis on key growth areas demonstrates the company’s strategic focus on providing comprehensive and innovative cybersecurity solutions.
In a demonstration of confidence in its future prospects, Fortinet’s board authorized a $1 billion increase to the company’s existing share repurchase program. This move reinforces the company’s commitment to returning value to shareholders.
Looking ahead, Fortinet’s outlook remains optimistic. The company anticipates fourth-quarter revenue to fall between $1.56 billion and $1.62 billion, with adjusted earnings per share projected at 58 cents to 62 cents. For the full year, Fortinet expects revenue in the range of $5.856 billion to $5.916 billion, surpassing analyst estimates of $5.861 billion. The company also foresees full-year adjusted earnings in the range of $2.20 to $2.28 per share.
In after-hours trading, Fortinet’s stock (FTNT) declined by 5% to $79.50 per share. Despite this initial dip, the company’s strong Q3 results and positive outlook suggest potential for future growth and shareholder value creation.