Fortinet's third-quarter results beat expectations: revenue rose 20% year over year to $2.08 billion, and adjusted EPS of $0.91 topped the $0.86 analysts expected. The company raised its full-year billings guidance for the third time this year and added $1.2 billion to its buyback authorization. Yet the stock fell about 25% after the report, as services revenue grew only about 13% to $1.31 billion while product revenue jumped 37%, and the full-year services forecast was cut to $5.15–5.17 billion. CFO Christiane Ohlgart called the shortfall a timing issue, as several large deals include services that start later, and said services should grow faster in 2027. The article notes deferred revenue rose to $7.93 billion from $7.12 billion at the end of 2025, which offers some evidence for that view, though it may take a few quarters to confirm. Free cash flow was $865 million.
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