Fortinet
Fortinet is a leader in cybersecurity, driving the convergence of networking and security.
10-K, Feb 25, 2026
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Business
How does Fortinet make money?
No revenue split that adds up to total revenue.
Empty state, nothing estimated.
What is left of every $100?
Of every $100 in revenue, $27 is net income.
Source and method
Of every $100 of revenue, FY2025.
Calculated: amount ÷ revenue × 100.
- Revenue: $6.8B
- Gross profit: $5.5B
- Operating income: $2.1B
- Net income: $1.9B
- Free cash flow: $2.2B
Where do customers sit?
41.7% of revenue is from Europe, Middle East & Africa.
Source and method
Revenue by region, latest annual report.
10-K · 0001262039-26-000007 · XBRL revenue by region · one level, shares add up to 100.0% · derived
Calculated: share = region revenue ÷ total revenue.
In the company’s words ›
“Our mission is to secure people, devices and data everywhere.”
“Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge (“SASE”) and artificial intelligence (“AI”)-driven security operations (“SecOps”).”
“As of December 31, 2025, our end-customers were located in over 100 countries and included enterprises across a wide variety of market verticals, including financial services, retail, healthcare and operational technology (“OT”) market verticals, communication and security service providers, and government organizations.”
Item 1 · Business · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Thesis
Why do people invest?
3 reasons in the company’s own words.
Revenue +14%
“Total revenue was $6.80 billion in 2025, an increase of 14% compared to $5.96 billion in 2024.”
Item 7 · MD&A · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Number check (revenue): stated $6.8B matches the stored value ($6.8B, ±10%)
Revenue: $6.8B FY2025 · +14.2% vs FY2024 · KPIs
Position (in the company’s words)
“Our end-customers are located in over 100 countries and include small, medium and large enterprises and government organizations across a wide range of industries, including financial services, government, manufacturing, retail, technology, education, healthcare and telecommunications.”
Item 1 · Business · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
R&D +14%
“Research and development expenses increased $98.7 million, or 14%, in 2025 compared to 2024, primarily due to an increase of $71.8 million in personnel-related costs as a result of increased headcount and compensation rates to support the development of new products and continued enhancements to our existing products and the impact of the recent acquisitions.”
Item 7 · MD&A · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Number check (R&D expense): stated $98.7M matches the stored change ($98.7M, ±10%)
R&D expense: $816M FY2025 · +13.8% vs FY2024 · Profitability charts
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
3 of 3 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
KPIs
How fast is revenue growing?
Revenue grew 14% to $6.8B.
Revenue grew 26% YoY to $2.0B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue grew 62.1%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
30.7% operating margin, up from 30.3%.
80.5% gross margin, down from 80.6%.
Operating income grew 16% to $2.1B.
Net income grew 6.2% to $1.9B.
R&D grew 14% to $816M.
SG&A grew 13% to $2.6B.
EPS diluted grew 7.1% to $2.42.
33.7% operating margin, up from 28.1%.
80.2% gross margin, down from 80.7%.
Operating income grew 51% YoY to $689M.
Net income grew 38% YoY to $606M.
R&D grew 7.4% YoY to $225M.
SG&A grew 13% YoY to $730M.
EPS diluted grew 44% YoY to $0.82.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How much cash does it make, and where does it go?
Keeps $33 of every $100 as free cash.
Operating cash flow grew 15% to $2.6B.
Capex fell 3.7% to $365M.
Buybacks grew 381,533% to $2.3B.
Stock-based compensation grew 8.4% to $280M.
Free cash flow grew 240% YoY to $966M.
Operating cash flow grew 131% YoY to $1.0B.
Capex fell 54% YoY to $78.0M.
Buybacks fell 63% YoY to $150M.
Stock-based compensation grew 16% YoY to $80.8M.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How strong is the balance sheet?
$2.5B cash vs $996M debt.
Total debt grew 0.2% to $996M.
Interest expense grew 0.5% to $20.1M.
Total assets grew 6.4% to $10.4B.
Equity fell 17% to $1.2B.
Cash fell 13% YoY to $2.9B.
Total debt fell 50% YoY to $497M.
Interest expense fell 30% YoY to $3.2M.
Total assets grew 2.0% YoY to $10.9B.
Equity fell 25% YoY to $1.6B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Dependencies
How much revenue hangs on one customer?
One customer: 28% of revenue.
Source & method
- Counted
- Largest customers as disclosed in the annual report (share of revenue).
- Formulas
- One customer in dollars = disclosed share × total revenue of the same fiscal year (calculated), only where the filing text confirms the share is of total revenue.
- Guards
- Anonymous customers stay anonymous. Segment-based shares are never multiplied by total revenue.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (Fortinet annual report)
10-K · 0001262039-26-000007 · filed Feb 25, 2026
Suppliers named by Fortinet
Fortinet holds stakes in
No stake in a covered company found in SEC filings.
Others name Fortinet
1 competitor mention (e.g. F5) · 1 other mention (e.g. HPE) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
4 of 64 risk factors, one per theme.
Supply chain and manufacturing
“Any efforts to withdraw from or materially modify international trade agreements, change tax provisions related to global manufacturing and sales or impose new tariffs, economic sanctions or related legislation, could adversely affect our financial condition and results of operations.”
Item 1A · Risk Factors · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Trade, government policy and geopolitics
“Adverse economic conditions, such as a possible recession and possible impacts of inflation or stagflation, tariffs or other trade disruptions, changing interest rates, reduced information technology spending, including firewall and other security spending, or any economic downturn or recession, may adversely impact our business.”
Item 1A · Risk Factors · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Security, defects and outages
“We rely significantly on revenue from FortiGuard and other security subscriptions and FortiCare technical support services, and revenue from these services may decline or fluctuate.”
Item 1A · Risk Factors · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Acquisitions
“Our real estate investments, including construction, acquisition, development or leasing of new data centers, data center expansions or office buildings, could involve significant risks to our business.”
Item 1A · Risk Factors · 10-K · 0001262039-26-000007 · filed Feb 25, 2026
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
Vanguard Capital Management LLC holds 6.21%.
Vanguard Capital Management LLC6.21%
13G · as of Mar 31, 2026 · filed Apr 29, 2026
Xie Ken10.3% (then)
13G/A · as of Dec 31, 2023 · filed Feb 13, 2024 · older than 18 months, current position unknown
Xie Michael9.2% (then)
13G/A · as of Dec 31, 2023 · filed Feb 13, 2024 · older than 18 months, current position unknown
BlackRock Inc.7.1% (then)
13G/A · filed Jan 26, 2024 · older than 18 months, current position unknown
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only. “(then)”: reported in a filing older than 18 months; the current position is not known from SEC 13G/13D data.
2 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.12.3%
62.2M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC8.0%
40.7M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp5.9%
29.6M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Portfolio Management LLC4.9%
24.8M shares · 13F filed Aug 13, 2026 · share of 13F-reported
Invesco Ltd.4.9%
24.6M shares · 13F filed Aug 14, 2026 · share of 13F-reported
1,579 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding.
Insiders, last 12 months (Form 4, open market)
0 purchases · 58 sales · $136M sold
Grants, gifts and tax withholding counted separately · window Oct 14, 2025 – Oct 14, 2026
All metrics
All metrics · 35 SEC metrics, FY2016–FY2025
Income statement 12
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue | ||||||||||
| D&A | ||||||||||
| G&A | ||||||||||
| Gross profit | ||||||||||
| Income taxes | ||||||||||
| Interest expense | not reported | not reported | not reported | |||||||
| Net income | ||||||||||
| Operating income | ||||||||||
| Research and development | ||||||||||
| Revenue | ||||||||||
| SG&A calc. | ||||||||||
| Sales & marketing | ||||||||||
Balance sheet 9
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long-term debt | not reported | not reported | not reported | not reported | not reported | not reported | not reported | |||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | not reported | not reported | not reported | not reported | ||||||
| Total assets | ||||||||||
| Total debt calc. | not reported | not reported | not reported | not reported | ||||||
| Total liabilities & equity | ||||||||||
Cash flow 6
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | ||||||||||
| Capex | ||||||||||
| Free cash flow calc. | ||||||||||
| Interest paid | not reported | not reported | not reported | not reported | not reported | |||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 4
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| NCI income | not reported | not reported | not reported | not reported | ||||||
| Other income (incl. interest) calc. | ||||||||||
| Pretax income | ||||||||||
| Total liabilities | ||||||||||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values