Fortinet, Inc.

Hello and welcome to Fortinet's first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. Please be advised that this call is being recorded. I would now like to hand over the call to Anthony Luskri, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, and thank you for joining us on today's conference call to discuss Fortinet's first quarter 2026 financial results. Joining me on today's call are Ken Zee, Fortinet's founder, chairman, and CEO, Christiana Olgaard, our CFO, and John Whittle, our COO. Ken will begin our call today by providing high-level perspective on our business. Christiana will then review our financial results for the first quarter of 2026. During the Q&A session, we will ask that you please limit yourself to one question and one follow-up question to allow others to participate. Before we begin, I'd like to remind everyone that on today's call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Please refer to our SEC filings, in particular the risk factors in our most recent Form 10-K and Form 10-Q for more information. All forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements. Also, all references to financial metrics that we make on today's call are non-GAAP unless stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations are located in our press release and in the presentation that accompany today's remarks, both of which are posted on our investor relations website. As a reminder, this is a live call that will be available for replay via webcast on our investor relations website. The prepared remarks will also be posted on the quarterly earnings section of our investor relations website following today's call. Lastly, all references to growth are on a year-over-year basis unless noted otherwise. I will now turn the call over to Ken.

Thank you, Anthony, and thank you to everyone for joining our call. We are very pleased with our excellent first quarter result, exceeding our guidance through strong execution and broader base demand. As a result, building growth 31%, total revenue increased 20%, and the product revenue growth 41%. Non-GAAP and GAAP operating margin were very strong under 36 and 31 percent, with GAAP operation margin and revenue growth total together 51 percent, one of the highest in the industry. We also generate a record $1 billion free cash flow, highlighting the strength and durability of the business model. GAAP earning per share increased 29 percent, demonstrating our commitment to strong shareholder return. The convergence of networking and security approach Fortinet has lead for 26 years. It's accelerating in the AI era. Customers are adopting Fortinet platform with secure networking, unified SASE, secure operation built on a single FortiOS operation system, enabling expanding across many use cases. By delivering all core SASE capability natively integrated in one operating system, our SASE firewall significantly reduced complexity for customers. Innovation such as FortiOS 8.0 with its rich integrated functionality Our 40 ASIC technology, which deliver higher secure computing performance and a significantly lower cost, and our direct supply chain management continue to differentiate Fortnite and support the market share gain as AI drive strong demand for SASE firewalls. Secure networking building growth, 32%, outperforming the broad market. Today, we announced the FortiGate 3500G and 400G deliver significant performance improvement over previous generations. Further strength in finance leadership. OT security are accelerated in a quarter with OT building growth over 70% as customer prioritized on protecting critical infrastructure amid heightened threat. Unified SASE building grows 31%. Our differentiation is powered by three key advantages. Single operation system across NetGen firewall, SD-WAN and SASE. Our own global cloud infrastructure deliver better security and performance and roughly one-third of total cost ownership of peers. And our much larger total addressable market. especially in sovereign and private SASE, which allow customers to deploy SASE in their own environment to meet data sovereignty and regulatory requirements. Beyond secure networking and SASE, AI is rapidly expanding opportunity in security operation, as AI-driven security operation building growth 23%, supported by more than 20 AI-enabled solutions on our platform, as customers consolidate vendor and simplify operations. Finally, given our strong result and confidence in the business, we are reaching our 2026 guidance. We continue to expect balanced growth, strong cash generation, recurring revenue, and a shareholder-focused long-term growth capital allocation strategy, while consistently delivering gap probabilities since IPO. As AI increases the demand for security, Our platform approach continue to differentiate, supported by a strong direct operation model that's able us to turn supply chain challenges into opportunity to get market share. I would like to thank our employees, customers, partners, and suppliers worldwide for their continued support and hard work. I will now turn the call over to Christiana.