How does Fortinet (FTNT) make money?

Fortinet (FTNT) generates revenue primarily from Security Subscription, which accounted for 37.6% of total revenue in TTM through Q2 2026. The company reported $7.53B in revenue and converted 28.2% of it into net profit, equivalent to roughly $2.12B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Fortinet (FTNT)?

Fortinet (FTNT) reported a gross profit margin of 80.4% in TTM through Q2 2026, equivalent to $6.05B in gross profit on $7.53B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Fortinet (FTNT)?

Fortinet (FTNT) reported an operating profit margin of 32.4% in TTM through Q2 2026, equivalent to $2.44B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Fortinet (FTNT)?

Fortinet (FTNT) reported a net profit margin of 28.2% in TTM through Q2 2026, equivalent to $2.12B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Fortinet (FTNT) profitable?

Yes. Fortinet (FTNT) reported $2.12B in net income for TTM through Q2 2026, with a net profit margin of 28.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Fortinet (FTNT) invest in research and development?

Fortinet (FTNT) invested $846M in research and development during TTM through Q2 2026, roughly 11.2% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Fortinet (FTNT) spend on capital expenditures?

Fortinet (FTNT) spent $279M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 3.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Fortinet (FTNT) generate?

Fortinet (FTNT) generated $3.12B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 41.4%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Fortinet (FTNT)?

Fortinet (FTNT) had an effective tax rate of 19.2% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Fortinet (FTNT)?

Fortinet (FTNT) reports revenue across 3 reportable product segments, led by Security Subscription at 37.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Fortinet Makes Money: 2026 Visual Revenue Map

Fortinet (FTNT) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 29, 2026).

Fortinet discloses geographic revenue only in annual filings. to view the full breakdown.

Fortinet (FTNT) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Fortinet (FTNT), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Security Subscription	$2.83B	37.6%
Product	$2.6B	34.6%
Technical Support and Other	$2.09B	27.8%
Total	$7.53B	100%

Security Subscription$2.83B
Product$2.6B
Technical Support and Other$2.09B
Total$7.53B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Fortinet (FTNT) reports revenue across 3 reportable product segments; the largest segment was Security Subscription at 37.6%, followed by Product (34.6%) and Technical Support and Other (27.8%).

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