Fortinet has guided Q4 revenues to a range of $1.825 billion to $1.885 billion, representing year-over-year growth of approximately 15% at the mid-point. Management projects non-GAAP EPS to remain flat at $1.03 per share, reflecting continued investment in R&D and sales initiatives. This steady profitability outlook follows three consecutive quarters of margin expansion driven by operational efficiencies in the company’s Secure SD-WAN and firewall businesses.

Fortinet cited multiple large AI data center agreements signed in Q4, including a $120 million deployment with a leading cloud service provider and a $45 million multiyear contract with a global hyperscaler. These deals shifted the product mix toward high-performance FortiGate appliances and FortiAI modules, which carry average gross margins of 70%. Management indicated that AI-optimized security solutions now account for 18% of total bookings, up from 12% in the prior year quarter.

According to a consensus of 15 sell-side analysts, Fortinet is expected to report 6.8% year-over-year growth in deferred revenue, reaching $3.55 billion by quarter-end. Annualized recurring revenue (ARR) is forecast to stand at $3.9 billion, driven by 24% growth in subscription services. Analysts also model a non-GAAP operating margin of 32.5%, reflecting continued leverage in cloud-based security offerings and improving service delivery efficiencies.