Fortinet, Inc. stock research
FY2025 Q3
Fortinet (FTNT) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was slightly higher than the prior quarter but lower than the same quarter one year earlier, as cost of revenue grew at a faster pace relative to revenue over the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was slightly higher than the prior quarter but lower than the same quarter one year earlier, as cost of revenue grew at a faster pace relative to revenue over the year-ago period.
- The gross margin improved modestly from the prior quarter, driven by revenue growth outpacing the increase in cost of revenue. Compared to the same quarter last year, the margin weakened as cost of revenue rose more sharply relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.8%
Gross profit
$1.4B
Revenue
$1.7B
Cost of revenue
$331.7M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-1.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $1.7B | $1.4B | $331.7M | 80.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.1 pts
Year-over-year change
Sep 30, 2024
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved modestly from the prior quarter, driven by revenue growth outpacing the increase in cost of revenue. Compared to the same quarter last year, the margin weakened as cost of revenue rose more sharply relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth compared to the year-ago quarter contributed to the margin decline.