Cybersecurity firm Fortinet (NASDAQ:FTNT) saw its shares soar 15% in after-hours trading on Tuesday after reporting second-quarter earnings that handily beat analyst expectations and raising its full-year outlook.
The company reported adjusted earnings per share of $0.57, significantly surpassing the analyst consensus of $0.41. Revenue for the quarter came in at $1.43 billion, ahead of estimates of $1.4 billion and up 10.9% YoY.
Fortinet's strong performance was driven by robust growth in its service revenue, which jumped 19.8% YoY to $982.4 million. The company also achieved record GAAP and non-GAAP operating margins of 30.5% and 35.1% respectively.
"In the second quarter, we successfully balanced growth and profitability as our non-GAAP operating margin increased 820 basis points year-over-year to a company record of 35.1%, while billings and revenue were at the high end of their respective guidance ranges," said Ken Xie, Founder, Chairman and CEO of Fortinet.
Looking ahead, Fortinet raised its full-year 2024 guidance, now expecting revenue between $5.8 billion and $5.9 billion, up from its previous forecast and above analyst estimates of $5.79 billion. The company also boosted its EPS outlook to $2.13-$2.19, well above the consensus of $1.76.
The strong results and optimistic outlook reflect Fortinet's continued success in the cybersecurity market, particularly in areas like Unified SASE and Security Operations.