Deferred revenue was $7.68 billion as of June 30, 2026, an increase of $559.9 million, or 8%, from December 31, 2025.
The majority of our deferred revenue balance consists of the unrecognized portion of service revenue from FortiGuard and other security subscriptions and FortiCare technical support service contracts, which is recognized as revenue ratably over the service term.
Service revenue increased 14% during the three months ended June 30, 2026 compared to the same period last year, primarily driven by the strength of our security subscription revenue and our technical support and other services revenue.
The increase was primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions.
two findings, in the order they were read
The disclosed deferred revenue balance rose from $7.35 billion to $7.68 billion, and the year-to-date increase grew from 3% to 8%.
before · MD&A · 2026-03-31 → 2026-06-30