Short answer
Fortinet (FTNT) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $6.8B (+14.2% year over year) and net income of $1.9B.
- Top risk flagged: Taiwan manufacturing concentration: majority of hardware manufactured in Taiwan; China-Taiwan tensions could critically disrupt production and supply
FY2025 key financial metrics · XBRL
- Revenue
- $6.8B
- +14.2% YoY
- Net income
- $1.9B
- +6.2% YoY
- Operating margin
- 30.7%
- +0.4 pp YoY
- Gross margin
- 80.5%
- −0.1 pp YoY
- EPS (diluted)
- $2.42
- +7.1% YoY
- ROE
- 149.8%
- +32.9 pp YoY
- Operating cash flow
- $2.6B
- +14.7% YoY
Source: XBRL data from the Fortinet (FTNT) FY2025 10-K on SEC EDGAR. USD.
Fortinet FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Integrated cybersecurity platform (Fortinet Security Fabric) spanning secure networking, unified SASE, and AI-driven SecOps sold via two-tier channel distribution
- FortiAI introduced as dual-layer "AI for Security / Security for AI" framework, including FortiAI-SecureAI protecting LLMs and APIs: new emphasis on AI infrastructure defense
- Anticipates major firewall refresh cycle as strategic expansion catalyst, targeting upsell into LAN, SD-WAN, SASE, CNAPP, and SecOps within existing customer base
- Total revenue $6.80B with net income $1.85B; 1,405 global patents including 321 AI-related; 15,109 employees across 100+ countries
- ~87% of hardware manufactured in Taiwan, with proprietary ASICs fabbed at TSMC: concentrated single-country supply chain risk explicitly disclosed
Management Discussion & Analysis
- Revenue $6.80B in 2025, up 14% YoY (+$843.8M); product +16% to $2.22B, service +13% to $4.58B; EMEA fastest-growing region at +18%
- Total gross margin 80.5% vs 80.6%; product margin 67.3% vs 65.8%; service margin 86.8% vs 87.5%; operating margin 30.7% vs 30.3%
- Operating cash flow $2.59B (+15% YoY); capex $364.8M; free cash flow $2.21B; buybacks $2.29B (28.7M shares); $738.6M remaining under repurchase program at year-end
- 2026 outlook: revenue growth expected but operating margin guided to decline as sales/marketing headcount, R&D, and data center capex ($350M–$450M) outpace revenue growth
- Key risks: memory chip shortage constraining hardware supply, tariff exposure on U.S. hardware sales, USD weakening inflating foreign-currency opex
Risk Factors
- Taiwan manufacturing concentration: majority of hardware manufactured in Taiwan; China-Taiwan tensions could critically disrupt production and supply
- Single distributor 32% of total net accounts receivable as of December 31, 2025; six distributors combined at 67%
- Memory chip shortage ongoing due to global AI infrastructure buildout; implementing price increases to offset, risking demand decline
- CrowdStrike and Zscaler accelerating cloud-native security delivery, threatening Fortinet's on-premises-heavy platform model
- $996.3M Senior Notes outstanding as of December 31, 2025; key-person risk centered on Co-Founders Ken Xie (CEO) and Michael Xie (CTO)
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