Fortinet, Inc.

Fortinet's growth re-accelerated in the first half of FY2026 as AI data centre builds and critical-infrastructure upgrades pulled firewalls, SASE and industrial security through one operating system. But the recurring services that pay most of the bills still lag far behind.How much of the pickup is AI data centre spend versus the normal refresh cycle?

• The firewall business is growing like a brand new product.

  Ken Xie sells firewalls and SASE as one product, a SASE Firewall, that passed $2 billion in billings and grew 34% last quarter. Because one box covers a data centre and a shop floor, rivals with separate boxes need two deals to match one.How much of the SASE Firewall growth comes from existing firewall customers?

• Recurring services finally stopped getting worse, and the guidance hangs on it.

  Service revenue growth fell for nine quarters before management called Q1 FY2026 the trough; Q2 hit 14% with service billings up 26%. Services are most of the revenue, so until they catch up the company grows more slowly than demand.

• Part of the product surge is a price rise it plans to give back.

  Memory costs pushed appliance prices up, and management built a high-single-digit price effect into second-half billings. Xie says the aim is to hold margin, not widen it, and to cut prices when costs fall, so part of that 52% can unwind.How much of second-half billings growth comes from the price increases?