Fortinet, Inc. stock research
FY2025 Q4
Fortinet (FTNT) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly versus both periods, as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly versus both periods, as cost of revenue grew at a faster pace than revenue.
- Gross profit rose alongside higher revenue, but the gross margin declined because cost of revenue increased more than proportionally. The margin remained above three-quarters, indicating a generally high level of profitability.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were also higher, and gross margin was again lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.6%
Gross profit
$1.5B
Revenue
$1.9B
Cost of revenue
$389.2M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-1.5 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $1.9B | $1.5B | $389.2M | 79.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.2 pts
Year-over-year change
Dec 31, 2024
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit rose alongside higher revenue, but the gross margin declined because cost of revenue increased more than proportionally. The margin remained above three-quarters, indicating a generally high level of profitability.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were also higher, and gross margin was again lower.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has pressured gross margin in consecutive comparisons.