Fortinet Reports 17% Revenue Growth During 4Q24

Fortinet reported revenue of US$1.66 billion in the fourth quarter of 2024, an increase of 17% year-over-year. The company achieved a record GAAP operating margin of 35% and reported a 28% increase in annual recurring revenue (ARR) from its Unified SASE business.

"During the fourth quarter, we successfully balanced growth and profitability as our non-GAAP operating margin increased 720 basis points year-over-year to a company record of 39%, while revenue grew 17%," writes Ken Xie, Founder and CEO, Fortinet, in the report.

Fortinet continues its growth strategy in the Unified Secure Access Service Edge (SASE) and Security Operations markets, consolidating its focus on the convergence of networking and security. In 2024, the company achieved total revenues of US$5.96 billion, up 12% year-on-year. The services segment generated US$4.05 billion, representing a 20% increase compared to the previous year.

During 2024, Fortinet exceeded market expectations, with revenue exceeding analyst projections by 1.1%. Net income per share (EPS) also exceeded estimates by 7.1%. Fortinet reported operating cash flow of US$2.26 billion and free cash flow of US$1.88 billion. In addition, it maintained sustained growth under the "Rule of 45" for the fifth consecutive year, an indicator that combines revenue growth and free cash flow margin.

For the next three years, Fortinet projects average annual growth of 12%, in line with expectations for the software industry in the United States. Despite these results, the company's shares fell 1.5% in the last week.

The company says it will continue to focus on developing security solutions integrated into FortiOS, its unified operating system. This is expected to enable it to offer security and networking capabilities natively on a single platform. 

Fortinet was also recognized in the Forbes Most Trusted Companies in America 2025 ranking, ranking seventh and being the only cybersecurity company in the Top 50.