Fortinet, Inc. stock research
FY2025 Q1
Fortinet (FTNT) Gross Margin — Quarter Ended Mar 31, 2025
Revenue, gross profit, and gross margin all declined compared to the prior quarter, while cost of revenue decreased. Versus the same quarter one year earlier, revenue and gross profit grew and gross margin improved, with cost of revenue lower.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue, gross profit, and gross margin all declined compared to the prior quarter, while cost of revenue decreased. Versus the same quarter one year earlier, revenue and gross profit grew and gross margin improved, with cost of revenue lower.
- Gross margin improved strongly year over year even though revenue increased, driven by a faster relative decline in cost of revenue. The current margin is nearly stable with the preceding quarter, suggesting sustained efficiency.
- Compared to the previous quarter, revenue, gross profit, and gross margin were all slightly lower, while cost of revenue also decreased. Compared to the same quarter a year ago, revenue and gross profit were higher, gross margin improved meaningfully, and cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.0%
Gross profit
$1.2B
Revenue
$1.5B
Cost of revenue
$293.1M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+3.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $1.4B | $1.2B | $275.0M | 80.8% |
| Sep 30, 2024 | $1.5B | $1.2B | $263.4M | 82.5% |
| Dec 31, 2024 | $1.7B | $1.3B | $314.5M | 81.1% |
| Mar 31, 2025 | $1.5B | $1.2B | $293.1M | 81.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.1 pts
Year-over-year change
Mar 31, 2024
+3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved strongly year over year even though revenue increased, driven by a faster relative decline in cost of revenue. The current margin is nearly stable with the preceding quarter, suggesting sustained efficiency.
Compared to the previous quarter, revenue, gross profit, and gross margin were all slightly lower, while cost of revenue also decreased. Compared to the same quarter a year ago, revenue and gross profit were higher, gross margin improved meaningfully, and cost of revenue was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its decline has supported margin improvement year over year.