Fortinet reported strong financial results for Q3 2024, with total revenue increasing 13% year-over-year to $1.51 billion. Product revenue grew 2% to $473.9 million, while service revenue rose 19% to $1.03 billion driven by security subscription growth. Operating margin expanded significantly to 31.2% from 22.7% last year due to improved gross margins and operating leverage.The company completed two strategic acquisitions during the quarter - Lacework for $152.3 million and Next DLP for $105 million, strengthening its cloud security and data loss prevention capabilities. A gain on bargain purchase of $106.3 million was recorded related to the Lacework acquisition. Gross margin improved 6.3 percentage points to 82.5% due to reduced costs and favorable revenue mix.Looking ahead, Fortinet expects service revenue growth to continue but at a more moderate pace due to slowing deferred revenue growth. The company maintained strong cash generation with operating cash flow of $608.1 million. As of September 30, 2024, Fortinet had $3.70 billion in cash and investments, with $1.03 billion remaining under its share repurchase authorization.

Fortinet reported strong financial results for Q3 2024, with total revenue increasing 13% year-over-year to $1.51 billion. Product revenue grew 2% to $473.9 million, while service revenue rose 19% to $1.03 billion driven by security subscription growth. Operating margin expanded significantly to 31.2% from 22.7% last year due to improved gross margins and operating leverage.The company completed two strategic acquisitions during the quarter - Lacework for $152.3 million and Next DLP for $105 million, strengthening its cloud security and data loss prevention capabilities. A gain on bargain purchase of $106.3 million was recorded related to the Lacework acquisition. Gross margin improved 6.3 percentage points to 82.5% due to reduced costs and favorable revenue mix.Looking ahead, Fortinet expects service revenue growth to continue but at a more moderate pace due to slowing deferred revenue growth. The company maintained strong cash generation with operating cash flow of $608.1 million. As of September 30, 2024, Fortinet had $3.70 billion in cash and investments, with $1.03 billion remaining under its share repurchase authorization.