Fortinet Stock Falls 21% as Lower Service-Revenue Outlook Weighs

Fortinet shares (NASDAQ: FTNT) fell about 21% on Thursday, October 29, after the cybersecurity company released third-quarter results and updated its annual outlook. The move came despite growth in reported revenue and billings; investors focused on the narrower forecast for service revenue.

Fortinet reported growth in the third quarter#

Revenue rose 20% year over year to $2.08 billion. Product revenue increased 37% to $765 million, billings grew 29% to $2.34 billion, and GAAP EPS was $0.86. Fortinet said non-GAAP EPS was $0.91. It also raised its full-year total revenue forecast, according to its third-quarter release.

The service-revenue range was reduced#

Fortinet now expects 2026 service revenue of $5.15 billion to $5.17 billion. Its previous range was $5.18 billion to $5.22 billion, and the midpoint of the new range was below the $5.2 billion analyst estimate cited by Reuters. The company lowered that component while still raising its total revenue outlook, a combination that helps explain why the headline growth rate alone did not capture the market's reaction.

Service revenue is different from product revenue. A softer forecast for that recurring part of the business can affect how investors assess future growth, even when the current quarter shows strong sales in both categories.

Reuters reported that analysts also lowered price targets after the results, while the broader software and cybersecurity group declined. That context is not the same as evidence that Fortinet's product or services demand has reversed. The company's next reports will show whether its revised service outlook proves cautious or accurate.

Follow the FTNT discussion on TickerPosts.

Published October 29, 2026. This article is informational and is not investment advice.