Fortinet lifts annual revenue forecast on strong cybersecurity demand
Fortinet lifts annual revenue forecast on strong cybersecurity demand July 29 (Reuters) - Cybersecurity firm Fortinet FTNT.O on Wednesday lifted its annual revenue forecast after reporting strong second-quarter results, signaling strong enterprise spending on its services amid rising data security incidents.
Companies are ramping up data security budgets to tackle increasingly sophisticated ransomware attacks and other threats.
The California-based company now projects annual revenue between $8.02 billion and $8.18 billion, compared with its previous expectation of $7.71 billion to $7.87 billion.
It expects annual adjusted earnings per share between $3.41 and $3.47, above its earlier expectation of $3.10 to $3.16.
Third-quarter revenue is expected to be between $2.01 billion and $2.1 billion, above analysts' expectation of $1.95 billion, according to data compiled by LSEG.
The adjusted profit per share is expected between 83 cents and 87 cents for the quarter, above esimate of 76 cents.
Fortinet, which offers integrated cybersecurity products including firewalls, intrusion prevention systems and cloud-based threat protection, is transitioning to a subscription-led model and integrating generative AI across its products.
Revenue for the second quarter was $2.05 billion, compared with estimates of $1.89 billion.
The adjusted earnings per share stood at 90 cents for the quarter ended June 30, compared with estimates of 75 cents.
(Reporting by Arunesh Sinha; Editing by Sahal Muhammed)
((Arunesh.Sinha@thomsonreuters.com;))