Fortinet (FTNT), a global cybersecurity company, reported third-quarter revenue of $2.08 billion, up 20% from a year earlier, and raised its 2026 revenue outlook to 20% year-over-year growth for the third time this year.

Year-over-year revenue growth slowed from 26% in the second quarter, when sales were $2.05 billion. Product revenue was $765 million, up 37% from a year earlier, after 52% growth to $773 million in the prior quarter. Service revenue was $1.31 billion.

Billings, which the company treats as a driver of future revenue and cash, were $2.34 billion, up 29% from a year earlier, slower than 33% growth to $2.37 billion in the second quarter. The change in deferred revenue was $258.7 million.

GAAP operating margin was 34% and non-GAAP operating margin was 38%, matching the second quarter. GAAP operating income was $704.3 million. GAAP diluted earnings were $0.86 a share; non-GAAP diluted earnings were $0.91 a share. GAAP gross margin was 79.0% and non-GAAP gross margin was 79.6%.

Operating cash flow was $946 million and free cash flow was $865 million. Free cash flow margin was 41.6%. Cash and cash equivalents were $3.75 billion at September 30. The company increased its share-repurchase authorization by $1.2 billion, leaving $2 billion remaining.

Chief Executive Officer Ken Xie said the quarter reflected strong execution and broad-based demand across the portfolio and that the company raised 2026 billings guidance for the third time this year. He attributed momentum to leadership in the AI era, citing FortiOS and FortiASIC as the basis for securing AI infrastructure.

The company announced FortiGuard Inline AI Security Service and FortiLink SASE, was selected by NVIDIA as a top OpenShell Reference Architecture Partner, joined Microsoft’s Sovereign Partner Ecosystem, and was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall.

For the fourth quarter of 2026, Fortinet expects revenue of $2.155 billion to $2.245 billion and billings of $2.775 billion to $2.925 billion. Non-GAAP operating margin is expected at 35.5% to 37.5%, and diluted non-GAAP net income of $0.93 to $0.95 a share, assuming an 18% non-GAAP tax rate.

For the full year, the company now expects revenue of $8.125 billion to $8.215 billion, service revenue of $5.150 billion to $5.170 billion, and billings of $9.568 billion to $9.718 billion. Non-GAAP operating margin is expected at 36.5% to 37.5%, and diluted non-GAAP net income of $3.54 to $3.58 a share, assuming an 18% non-GAAP tax rate. The company raised both ends of its revenue outlook from the $8.020 billion to $8.180 billion range issued after the second quarter, though the ranges still overlap.