Fortinet Reports $1.63 Billion Revenue in Q2 2025, Up 14% Year-Over-Year

Fortinet, Inc. reported a total revenue of $1.63 billion for the second quarter of 2025, marking a 14% increase from $1.43 billion in the same period last year. For the first half of 2025, revenue reached $3.17 billion, also up 14% from $2.79 billion in the prior year. Product revenue contributed $508.9 million for the quarter, a 13% increase year-over-year, while service revenue rose to $1.12 billion, reflecting a 14% growth. The company’s gross profit for the quarter was $1.32 billion, with a gross margin of 80.7%, slightly down from 80.8% in the previous year.

In terms of profitability, Fortinet's operating income for the second quarter was $458 million, a 5% increase from $437.2 million in the same quarter of 2024. The operating margin decreased to 28.1% from 30.5% due to rising operating expenses, which increased by 19% to $857.1 million, driven primarily by higher personnel costs in research and development and sales and marketing. Net income for the quarter was $440.1 million, up from $379.8 million a year earlier, resulting in a diluted earnings per share of $0.57 compared to $0.49 in the prior year.

Fortinet's strategic developments included the acquisition of Linksys Holdings, Inc., which was completed in January 2025 for $20.8 million, bringing the company's ownership to 100%. This acquisition is expected to enhance Fortinet's product offerings and market position. Additionally, the company has continued to expand its data center and point-of-presence (PoP) infrastructure, which is crucial for supporting its growing service offerings, particularly in unified Secure Access Service Edge (SASE) and AI-driven security operations.

Operationally, Fortinet reported a headcount of 14,898 employees as of June 30, 2025, reflecting a 10% increase from the previous year. The company’s deferred revenue stood at $6.57 billion, indicating a 3% increase from the end of 2024, with short-term deferred revenue at $3.41 billion. The geographic distribution of revenue showed strong performance across all regions, with EMEA contributing 41% of total revenue, followed by the Americas at 40% and APAC at 19%.

Looking ahead, Fortinet anticipates continued growth in both product and service revenues, driven by the increasing demand for cybersecurity solutions amid evolving market conditions. However, the company also acknowledged potential risks, including economic downturns, supply chain constraints, and competitive pressures that could impact future performance. Fortinet remains focused on leveraging its technological advancements and expanding its market share while navigating these challenges.