Fortinet, Inc. stock research
FY2026 Q1
Fortinet (FTNT) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit both increased compared to the same quarter one year earlier, while cost of revenue grew at a faster rate, resulting in a slightly lower gross margin. Sequentially, revenue declined from the prior quarter, but gross profit remained stable as cost of revenue decreased, leading to a modest improvement in gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the same quarter one year earlier, while cost of revenue grew at a faster rate, resulting in a slightly lower gross margin. Sequentially, revenue declined from the prior quarter, but gross profit remained stable as cost of revenue decreased, leading to a modest improvement in gross margin.
- The strongest observable margin driver is the sequential decline in cost of revenue relative to revenue, which allowed gross profit to hold steady despite lower revenue. This relationship directly supported the improvement in gross margin from the prior quarter.
- Compared to the immediately preceding quarter, revenue was lower but gross margin improved as cost of revenue decreased. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened slightly due to a proportionally larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.3%
Gross profit
$1.5B
Revenue
$1.8B
Cost of revenue
$364.5M
Quarter-over-quarter change
+0.7 pts
Year-over-year change
-0.7 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, 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% |
| Mar 31, 2026 | $1.8B | $1.5B | $364.5M | 80.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.7 pts
Year-over-year change
Mar 31, 2025
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential decline in cost of revenue relative to revenue, which allowed gross profit to hold steady despite lower revenue. This relationship directly supported the improvement in gross margin from the prior quarter.
Compared to the immediately preceding quarter, revenue was lower but gross margin improved as cost of revenue decreased. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened slightly due to a proportionally larger increase in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its movement has been the primary factor influencing gross margin changes in the current and prior periods.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Fortinet, Inc. (FTNT) | 80.3% |