Fortinet Beats Q3 Estimates and Raises Full-Year Guidance but Stock Falls 6%

Fortinet reported third-quarter 2026 revenue of $2.08 billion, a 20% increase year over year, beating consensus estimates with a positive revenue surprise of 0.79% and an earnings surprise of 7.06%. Billings surged 29% year over year to $2.34 billion, product revenue jumped 37% to $765 million, and non-GAAP earnings per share came in at $0.91. The company posted a GAAP operating margin of 34% and a non-GAAP operating margin of 38%, generating operating cash flow of $946 million and free cash flow of $865 million.

Despite the strong results, Fortinet shares fell roughly 5.9% in after-hours trading. The company raised its full-year 2026 billings outlook to a range of $9.568 billion to $9.718 billion and lifted its revenue growth guidance to approximately 20% year over year. For the fourth quarter, management guided revenue in the range of $2.155 billion and above. Fortinet also increased its share repurchase authorization by $1.2 billion, leaving a remaining buyback capacity of $2 billion.

Equinix separately reported third-quarter 2026 revenue of $2.571 billion, up 11% year over year on a reported basis and 12% on a normalized, constant-currency basis. The data-center company posted record annualized gross bookings of $533 million, up 35% year over year, fueled by demand for traditional and AI workloads. Equinix raised its full-year 2026 revenue guidance to a range of $10.325 billion to $10.365 billion, implying approximately 12% growth, and guided fourth-quarter revenue growth of 12% to 13% year over year.