Fortinet Beat Earnings and Raised Guidance — and Fell 25% Anyway

Fortinet beat earnings, beat revenue and raised its full-year guidance on Wednesday, October 28, 2026 — and its stock still plunged more than 24% in after-hours trading. The cybersecurity company reported adjusted earnings of $0.91 per share on revenue of $2.08 billion, both ahead of Wall Street expectations, yet investors sold the stock down to around $131.95 in extended trade after it had already closed the regular session down 5.9%.

What happened

Fortinet reported third-quarter results after the market close on Wednesday for the quarter ended September 30, 2026. Adjusted earnings rose 23% from a year earlier to $0.91 per share, ahead of the $0.86 analysts expected. Revenue climbed about 20% to $2.08 billion, also beating the $2.06 billion consensus, helped by strong demand for network firewall products.

The company then raised its outlook. For the fourth quarter, Fortinet guided to adjusted earnings of $0.93 to $0.95 per share on revenue of $2.155 billion to $2.245 billion, above expectations for $0.88 per share and $2.16 billion. For the full year, it raised its forecast to adjusted earnings of $3.54 to $3.58 per share on revenue of $8.125 billion to $8.215 billion, versus expectations of $3.45 and $8.12 billion.

The key facts

• Adjusted EPS: $0.91, versus $0.86 expected
• Revenue: $2.08 billion, up about 20% year over year, versus $2.06 billion expected
• Billings: up 29% to $2.336 billion, only just above the $2.308 billion estimate
• Q4 guidance: adjusted EPS of $0.93–$0.95 and revenue of $2.155–$2.245 billion, both above consensus
• Full-year guidance: raised to $3.54–$3.58 per share on $8.125–$8.215 billion of revenue
• Stock reaction: down more than 24% in extended trading to around $131.95, after a 5.9% fall in the regular session

Why the stock is falling anyway

The sell-off is about expectations, not the headline numbers. Fortinet stock had advanced about 132% in 2026 heading into the report, according to Investor's Business Daily, leaving almost no room for anything less than a blowout. Against that run, billings — a closely watched sales-growth metric — rose 29% to $2.336 billion but only edged past the $2.308 billion estimate, which IBD said underwhelmed investors.

After-hours roundups also pointed to margin guidance and performance gaps weighing on sentiment despite the top- and bottom-line beats. In other words, the raised outlook was better than analysts had modelled, but not rosy enough for a stock priced for perfection after more than doubling this year.

Chief executive Ken Xie struck an upbeat tone, saying that as artificial intelligence introduces new attack surfaces, network security remains the critical foundation of AI security, and noting that demand allowed Fortinet to raise its billings guidance for the third time this year. Full-year billings are now seen at $9.568 billion to $9.718 billion. The market, at least on Wednesday night, was not persuaded.

Why it is blowing up

A fall of more than 24% in a large cybersecurity company that just beat and raised is the kind of move that dominates after-hours coverage. Investor's Business Daily led its late-session roundup with Microsoft rising while Google, ServiceNow and Fortinet dived, and noted that software stocks fell solidly overnight on the Fortinet and ServiceNow results. ServiceNow itself dropped more than 15% in extended trading on mixed results, adding to the sense of a rough night for enterprise software.

What is next

Attention now turns to Thursday's regular session, when Fortinet shares are set to gap far below their 50-day line, and to whether analysts defend the stock on the raised guidance or cut targets on the billings and margin concerns. The next hard test is the fourth quarter itself, where Fortinet must deliver revenue near the top of its $2.155 billion to $2.245 billion range to show the after-hours verdict was too harsh. This report describes what happened and why markets reacted; it is not a recommendation to buy, sell or hold any security.

Sources

• Barron's — Fortinet beats expectations but rosier outlook apparently not rosy enough
• Investor's Business Daily — Fortinet earnings top views, but billings growth underwhelms
• Investor's Business Daily — Microsoft rises late, but Google, ServiceNow, Fortinet dive on earnings
• Associated Press via Herald Review — Fortinet Q3 earnings snapshot

FAQ

Did Fortinet beat earnings expectations in Q3 2026?

Yes. Fortinet reported adjusted earnings of $0.91 per share versus $0.86 expected, and revenue of $2.08 billion versus $2.06 billion expected.

Why did Fortinet stock fall more than 24% after a beat?

The stock had risen about 132% in 2026 before the report, so expectations were very high. Billings growth of 29% only just beat estimates and underwhelmed investors, and margin guidance also weighed on sentiment.

Did Fortinet raise its guidance?

Yes. It raised full-year guidance to adjusted earnings of $3.54 to $3.58 per share on revenue of $8.125 billion to $8.215 billion, and guided fourth-quarter results above consensus.

What did Fortinet guide for the fourth quarter?

Fortinet expects fourth-quarter adjusted earnings of $0.93 to $0.95 per share on revenue of $2.155 billion to $2.245 billion.