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Fortinet (Fortinet (FTNT)) shares are soaring after the cybersecurity company delivered a second-quarter earnings report that blew past expectations. The stock was up more than 10% in after-hours trading Wednesday, hitting $169—just shy of its 52-week high of $170.35.
Here's what drove the rally.
Fortinet reported second-quarter revenue of $2.05 billion, up 26% year-over-year. That easily topped the consensus estimate of $1.89 billion. Product revenue was a standout, coming in at $773 million—a 52% jump from last year. Billings also rose 33% year-over-year.
Earnings per share came in at 90 cents, beating the Street's 75-cent estimate by a healthy margin.
"We are very pleased with our excellent second quarter results, which reflect the differentiated value of our innovation in the AI Era," CEO Ken Xie said in a statement.
The good news didn't stop with the quarter. Fortinet's outlook for the third quarter and the full year also impressed.
For Q3, the company expects revenue between $2.01 billion and $2.10 billion, above the current Street estimate of $1.95 billion. Earnings per share are forecast in a range of 83 to 87 cents, versus the 76-cent consensus.
For the full year, Fortinet raised its guidance across the board. It now expects earnings per share of $3.41 to $3.47, up from the prior range of $3.10 to $3.16. The Street had been looking for $3.16. Revenue guidance was lifted to $8.02 billion to $8.18 billion, compared to the previous range of $7.71 billion to $7.87 billion and the Street estimate of $7.81 billion.
Fortinet shares closed the regular session at $153.20 but jumped to $169 in after-hours trading, a gain of 10.3%. The stock's 52-week range is $70.12 to $170.35, meaning it's now trading near the top of that range.
With strong results and a raised outlook, investors are betting that Fortinet's AI-focused cybersecurity strategy is paying off.
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