• Total revenue of $1.54 billion, up 14% year over year
• Product revenue of $459 million, up 12% year over year
• Billings of $1.60 billion, up 14% year over year1
• Unified SASE ARR2 up 26% and Security Operations ARR2 up 30%, year over year
• Record first quarter GAAP operating margin of 29%
• Record first quarter Non-GAAP operating margin of 34%1
• Record Cash flow from operations of $863 million
• Record Free cash flow of $783 million1
By ; Ameen Kadry
Fortinet® (NASDAQ: FTNT), a global cybersecurity leader driving the convergence of networking and security, today reported strong financial results for the first quarter ended March 31, 2025. The company posted total revenue of US$1.54 billion, representing a 13.8% increase compared to US$1.35 billion in the same period last year.
Service revenue grew by 14.4% year-over-year to $1.08 billion, up from $944.4 million in Q1 2024, reflecting heightened demand for advanced cybersecurity services. Product revenue also posted healthy growth, rising 12.3% to $459.1 million, compared to $408.9 million in the prior-year period, driven by continued expansion in secure networking and infrastructure protection.
Fortinet’s strong Q1 performance reflects the success of its strategic focus on Secure Networking, Unified SASE, and AI-powered security operations. The company continues to capitalize on the accelerated demand for integrated cybersecurity solutions, underpinned by its proprietary FortiOS platform.
“We are pleased to report another strong quarter, with our non-GAAP operating margin reaching a record 34%, up 570 basis points year-over-year,” said Ken Xie, Founder, Chairman, and CEO of Fortinet. “This performance reflects solid growth across all business lines and the success of our strategic investments in high-growth areas like Unified SASE and advanced security operations.”
He added, “By leveraging our deep expertise in networking and security convergence, AI-driven innovation, and the unified FortiOS platform, we continue to set new industry standards and deliver scalable, effective cybersecurity solutions that address the evolving needs of our global customers.”
Record Billings and Growing Contracted Revenue
Total billings for the quarter reached $1.60 billion, up 13.5% from $1.41 billion in Q1 2024. Remaining performance obligations (RPO) rose to $6.49 billion, an 11.7% increase year over year. Of this, Fortinet expects to recognize $3.38 billion in revenue over the next 12 months, representing a 15.4% increase.
Unified SASE and AI-Powered Security Operations
The company continues to see strong momentum in high-growth segments. Annual recurring revenue (ARR) for its Unified SASE offerings jumped 25.7% to $1.15 billion, while ARR for security operations surged 30.3% to $434.5 million. These gains reflect increased customer adoption of Fortinet’s cloud-delivered and AI-enhanced security platforms.
Profitability and Operational Efficiency
GAAP operating income for Q1 2025 rose to $453.8 million, yielding a 29.5% operating margin—up from $321.2 million and 23.7% in the prior-year period. On a non-GAAP basis, operating income reached $526.2 million, representing a record margin of 34.2%, compared to 28.5% a year ago.
GAAP net income climbed to $433.4 million, or $0.56 per diluted share, versus $299.3 million or $0.39 per share in Q1 2024. Non-GAAP net income increased to $452.3 million, or $0.58 per diluted share, up from $333.9 million and $0.43 per share in the prior-year period.
Strong Cash Flow and Balance Sheet
Fortinet generated $863.3 million in cash from operations during Q1, which includes $14 million in proceeds related to an intellectual property matter. Free cash flow stood at $782.8 million, marking a significant increase from $608.5 million in Q1 2024—supporting continued investment in innovation, go-to-market expansion, and shareholder returns.
Q2 2025 Outlook
Fortinet expects Q2 2025 revenue to be between $1.590 billion and $1.650 billion, with billings projected between $1.685 billion and $1.765 billion. The company anticipates a non-GAAP operating margin of 31.5% to 32.5%, with non-GAAP EPS in the range of $0.58 to $0.60.
Full-Year 2025 Outlook
For the full year, Fortinet expects revenue between $6.650 billion and $6.850 billion, with service revenue ranging from $4.575 billion to $4.725 billion. Billings are projected between $7.200 billion and $7.400 billion, with non-GAAP operating margin between 31.5% and 33.5%, and non-GAAP EPS in the range of $2.43 to $2.49.
