Fortinet shows strong growth with 25% billings rise and 38% operating margin, maintaining a Buy rating.

Fortinet continues to impress with robust financial performance, highlighted by a 25% growth in billings and 19% revenue growth, supported by recurring service contracts. The company’s deferred revenue stands at $7.68 billion, reflecting strong demand for its hybrid security products. Margins remain strong with a non-GAAP operating margin of 38% and adjusted free cash flow margin of 49%, while free cash flow more than tripled year-over-year. Despite a demanding valuation, Fortinet’s industry-leading margins, resilient service revenue, and strong cash position support ongoing buybacks and growth, justifying a Buy rating.