Fortinet shares dropped 26% in after-hours trading despite reporting third-quarter revenue of $2.08 billion, which exceeded analyst expectations of $2.06 billion. The company reported adjusted earnings of 91 cents per share, surpassing the predicted 86 cents. Product revenue grew 37% to $765 million, while services revenue rose 13% to $1.31 billion.
The company raised its full-year revenue guidance to a range of $8.125 billion to $8.215 billion. However, it lowered its full-year service revenue forecast to $5.15 billion to $5.17 billion. In August, Fortinet acquired the AI startup Virtue AI Inc. for an undisclosed sum. Other cybersecurity stocks, including Tenable Holdings Inc., also saw declines in extended trading.
Tenable reported third-quarter revenue of $276.4 million and adjusted earnings of 63 cents per share, both beating analyst forecasts. The company added 413 new enterprise platform customers and executed share buybacks totaling $223.8 million. Despite these results, Tenable shares fell more than 5% in extended trading following the broader sector selloff.
Gen Digital Inc. reported fiscal 2027 second-quarter revenue of $1.37 billion and adjusted earnings of 74 cents per share, outperforming expectations. The company saw bookings rise 10% to $1.35 billion, with net income reaching $287 million. Gen Digital raised its full-year revenue outlook to a range of $5.465 billion to $5.515 billion.
