Fortinet, Inc.

Hello, and welcome to the Fortinet Second 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 the call over to Anthony Luspre, 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 Second Quarter 2026 financial results. Joining me on today's call are Ken Xie, Fort Innes founder, chairman, and CEO, Christiane Ohlgart, our CFO, and John Whittle, our COO. Ken will begin our call today by providing a high-level perspective on our business. Christiane will then review our financial results for the second quarter of 2026 before providing guidance for the third quarter and updating the full year. We will then open the call for questions. 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 risk 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 earnings 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 second quarter result, driven by our differentiated strategy and our innovation, strong execution, and broad-based demand. Buildings grew 33%, while total revenue increased 26%. propelled by 52% growth in product revenue, free cash flow more than tripled year-over-year to nearly $1 billion. Based on this strong momentum, we have reached our 2026 guidance. With AI quickly reshaping the security landscape, I would like to offer an other angle on the network security space and its trends. By combining our secure networking and unified SASE pillar, which both run on the same 40 OS to create what we are calling the SASE firewall. Similar to UTM NetGen firewall replaced the traditional net-based firewall 20 years ago, I believe this new SASE firewall, which address the fast-growing area of SASE, AI, and quantum, represent another massive opportunity for accelerated growth with a much larger total addressable market as shown on the slides of four to six of the investor presentation. In the second quarter, Fortinet's SASE firewall business growth 34% to over $2 billion, cementing our position as a top player in this space. What makes Fortinet's SASE firewall unique compared to other competitors' SASE and firewall solution is that we are the only vendor to develop all key component of SASE firewall in-house and integrate into a single operation system, 40 OS. Furthermore, we have developed 40 ASIC technology and invest in our own global infrastructure to accelerate the performance and lower the cost, making adoption and migration seamless for a large global customer base, as shown on the slides 10 and 11. Another key advantage of a SASE firewall is that we are the only vendor offering an easily deployable on-premise solvent SASE solution together with the cloud SASE. As we announced yesterday, the new FortiGate 1200G, the next generation SASE firewall that combines local enforcement with cloud-delivered security to meet evolving customer demand for data privacy, Performance and AI Infrastructure Management. We believe this has driven a strong product growth recently and has an addressable market that is approximately two to three times larger than the cloud-only SASE or competitor offering. And we continue to win SASE deals versus all of the top SASE competitors. We also see strong demand across our other strategic pillar, AI-driven secure ops. which had building growth of 25%, supported by over 20 AI-enabled solutions on our platform. As customers consolidate vendor and simplify operations, we recently launched 4T-ISOC, a new cloud-delivered AI SOC platform, and expanded our 4T endpoint with new capabilities. As our nation deployed and used AI tools throughout their operations, they realize they must modernize their security to handle the complex, high-speed threat of AI error. And Fortinet is uniquely positioned here as a 40 OS platform and 40 ASIC technology along enterprise to securely scale their next-generation AI environment with faster and better protection and simplified operation. Looking ahead, we believe the combination of AI-driven security demand Our integrated and accelerated SASE firewall platform solution and our strong operation model position Fortnite well for long-term balance growth with strong cash generation, recurring revenue, and a shareholder-focused long-term growth capital allocation strategy while consistently delivering gap profitability. 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 Christiane.