Fortinet Inc
0IR9.L
$86.62 4.36%
Exchange: LSE | Sector: Technology | Industry: Software Services
Q1 2025
Published: May 8, 2025

Earnings Highlights

  • Revenue of $1.54B up 13.8% year-over-year
  • EPS of $0.56 increased by 43.6% from previous year
  • Gross margin of 81.0%
  • Net income of 433.40M
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0IR9.L
Company 0IR9.L

Executive Summary

Fortinet reported a solid QQ1 2025 with revenue of $1.5397 billion, up 13.8% year-over-year and down 7.25% quarter-over-quarter, reflecting typical seasonal patterns in enterprise security spend. The company delivered a robust gross margin of approximately 81%, with operating margins near 29.5% and net margins around 28.1%, underscoring recurring subscription-driven profitability supported by ongoing R&D and go-to-market investments. Cash generation remained strong, posting operating cash flow of $863.3 million and free cash flow of $796.8 million, culminating in a substantial cash position and a net cash balance of about $2.60 billion. Fortinet's balance sheet shows sizable deferred revenue, indicating substantial future revenue visibility from security subscriptions, while liquidity remains ample with cash and short-term investments totaling roughly $4.78 billion and a low near-term debt burden. Valuation remains elevated by design, with implied multiples (e.g., P/S ~48x, EV/Revenue ~127x) reflecting the market's premium on cybersecurity software franchises and durable free cash flow generation. Absent explicit forward guidance in the provided data, investors should monitor ARR growth, deferred revenue dynamics, and the mix shift toward higher-margin services as key indicators of sustained profitability and cash generation.

Key Performance Indicators

Revenue
Increasing
1.54B
QoQ: -7.25% | YoY: 13.77%
Gross Profit
Increasing
1.25B
80.96% margin
QoQ: -7.36% | YoY: 18.88%
Operating Income
Increasing
453.80M
QoQ: -20.95% | YoY: 41.28%
Net Income
Increasing
433.40M
QoQ: -17.64% | YoY: 44.80%
EPS
Increasing
0.56
QoQ: -18.84% | YoY: 43.59%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 1,724.90 0.62 +14.4% View
Q2 2025 1,630.00 0.57 +13.6% View
Q1 2025 1,539.70 0.56 +13.8% View
Q4 2024 1,660.10 0.68 +17.3% View
Q3 2024 1,508.10 0.70 +13.0% View