Fortinet, Inc. stock research
FY2025 Q2
Fortinet (FTNT) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from both periods, remaining at a high level.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from both periods, remaining at a high level.
- The primary observable driver of the gross margin change is the relative growth rates of revenue and cost of revenue. Cost of revenue increased at a faster pace than revenue, compressing the margin slightly.
- Relative to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, while gross margin was lower. The same directional changes held when compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.7%
Gross profit
$1.3B
Revenue
$1.6B
Cost of revenue
$314.9M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $1.6B | $1.3B | $314.9M | 80.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.3 pts
Year-over-year change
Jun 30, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change is the relative growth rates of revenue and cost of revenue. Cost of revenue increased at a faster pace than revenue, compressing the margin slightly.
Relative to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, while gross margin was lower. The same directional changes held when compared to the same quarter one year earlier.
Monitor deferred revenue growth as it is a leading indicator of future revenue and free cash flow, as highlighted in the filing.