Fortinet, Inc.

Filing receipts

“Service gross margin increased 0.3 percentage points during the three months ended March 31, 2026 compared to the same period last year, primarily driven by service revenue growth outpacing labor costs increase, partially offset by increased costs related to the continued expansion of our data center and cloud services.”

“Interest income, interest expense and other income — net Three Months Ended March 31, 2026 March 31, 2025 Change % Change (in millions, except percentages) Interest income $ 32.9 $ 44.3 $ (11.4) (26) % Interest expense $ (4.2) $ (4.9) $ 0.7 (14) % Other income—net $ 47.9 $ 26.1 $ 21.8 84 % Interest income decreased $11.4 million during the three months ended March 31, 2026 compared to the same period last year, primarily due to lower average interest rates and lower average cash and cash equivalents balances as a result of share repurchases and debt repayment.”

“The 1.9 percentage points increase in operating margin was primarily due to 1.3, 0.8 and 0.8 percentage points decreases in research and development expense, sales and marketing expense and general and administrative expense, as a percentage of revenue, respectively, partially offset by 0.7 percentage points decrease in gross margin and 0.3 percentage points decrease in gain on intellectual property matters as a percentage of revenue.”