Fortinet reported good financial results for the second quarter of 2025, but the stock market reacted negatively to the company’s cautious forecasts. The share price fell by more than 16 percent after the market closed.
In the quarter ending June 30, Fortinet reported revenue of $1.63 billion, up 14 percent year-on-year. Adjusted earnings per share came in at 64 cents, better than the 59 cents analysts had expected on average. Billings grew 15 percent to $1.78 billion, also in line with previous expectations.
Annual recurring revenue (ARR) from Fortinet’s Unified SASE solution rose 22 percent, while ARR for Security Operations increased 35 percent. The company also reported that total remaining performance obligations (RPO), which are contract obligations still to be fulfilled, amounted to $6.642 billion, an increase of 12 percent compared to a year earlier. Within that total, RPO for SASE grew 17 percent to $1.488 billion, and RPO for SecOps grew 22 percent to $660 million.
Three new services
On the product front, Fortinet further expanded its FortiCloud platform with three new integrated services: FortiIdentity, FortiDrive, and FortiConnect. FortiIdentity focuses on identity and access management, FortiDrive supports secure storage and collaboration, and FortiConnect provides streamlined and secure onboarding of users and devices. All three are part of the broader AI-driven FortiCloud ecosystem, which focuses on an integrated approach to network security and infrastructure management.
Another key focus for Fortinet this quarter was further penetration into environments where operational technology (OT) and information technology (IT) converge. The company reports increased adoption of its network security solutions in industrial and mission-critical environments. This growth is supported by broader market recognition of Fortinet’s position in the IT/OT domain and by improvements in visibility and segmentation within complex infrastructures.
CEO expresses confidence
According to founder and CEO Ken Xie, the quarterly performance is a direct result of Fortinet’s focus on innovation and a customer-centric strategy. He points out that the company exceeded its own billing forecast and has sufficient confidence to raise its full-year expectations.
For the third quarter of 2025, Fortinet expects revenue between $1.67 billion and $1.73 billion and adjusted earnings per share of 62 to 64 cents. Although the profit forecast is slightly above the analyst consensus, revenue remains at the lower end of market expectations. For the full fiscal year, revenue guidance remains between $6.675 billion and $6.825 billion, with expected earnings per share of $2.47 to $2.53. Here too, the guidance is only marginally in line with market expectations.