Fortinet shares fall 25% after hours as service revenue guidance cut offsets Q3 beat

Fortinet beat Q3 estimates and raised its FY26 revenue and EPS outlook, but shares fell about 25% after hours. The market focused on a cut to FY26 service revenue guidance to $5.15B-$5.17B from $5.18B-$5.22B, with services growth slowing to 13% versus 20% total revenue growth. Q3 revenue rose 20% to $2.08B, product revenue jumped 37% to $765M, and billings grew 29% to $2.34B. Non-GAAP EPS was $0.91, above the $0.86 estimate. The company raised FY26 revenue guidance to $8.125B-$8.215B and EPS to $3.54-$3.58, and increased its buyback authorization by $1.2B.