Fortinet reported $7.7 billion in remaining performance obligations as product revenue surged amid strong SASE and OT security growth.
Fortinet’s product revenue rose 52% in the second quarter, driven by demand for larger hardware appliances supporting AI infrastructure, network traffic, and operational technology security. The company cited broad-based global demand across multiple customer use cases, including SD-WAN and OT security needs.
Unified SASE sales grew 35%, accounting for roughly a quarter of total revenue, while FortiSASE billings more than doubled. OT security billings climbed 55%, and recurring service billings increased 26%, pushing remaining performance obligations to $7.7 billion. The company attributed growth to its existing SD-WAN customer base and integration of cloud security with edge hardware.
Fortinet’s CFO described the quarter as “fantastic,” highlighting strong FortiGate hardware sales as organizations expanded networks and improved security for AI and operational technology. Cybersecurity stocks, including Fortinet, have remained resilient amid broader market shifts in AI-related trades.