Fortinet vs SentinelOne

10-Q Financial Filing Analysis for Fortinet (2026-07-30)

Fortinet reported strong financial performance for the second quarter of fiscal 2026, with total revenue rising 26% year-over-year to $2.05 billion and operating income growing 51% to $689.3 million. Revenue expansion was driven by a 52% surge in product revenue to $773.0 million, fueled by higher hardware unit shipments, customer upgrades for AI-related infrastructure, and pricing actions, alongside a 14% increase in service revenue to $1.27 billion. Operating margin expanded by 5.6 percentage points to 33.7%, reflecting strong operating leverage as top-line growth outpaced operating expenses. Net income for the quarter reached $606.3 million ($0.82 per diluted share), up from $440.1 million in Q2 2025. Non-GAAP billings expanded 33% to $2.37 billion, and deferred revenue climbed to $7.68 billion, underscoring solid underlying demand across Secure Networking, Unified SASE, and SecOps platforms.

• Q2 2026 total revenue reached $2,047.9 million (+26% YoY), driven by $773.0 million in Product revenue (+52% YoY) and $1,274.9 million in Service revenue (+14% YoY).
• Operating income rose 51% YoY to $689.3 million with operating margin expanding 560 bps to 33.7%, while net income reached $606.3 million.
• Non-GAAP billings grew 33% YoY to $2,372.1 million, and total deferred revenue reached $7,675.7 million as of June 30, 2026.

Cybersecurity stock Zscaler's charts turn bullish: Jay Woods

In a CNBC Pro segment, technician Jay Woods discusses Zscaler (ZS), a cybersecurity company that has underperformed its sector peers. While CrowdStrike, Fortinet, Okta, and Palo Alto Networks have gained over 100% year-to-date, Zscaler shares fell as much as 65% from 52-week highs and remain down 13% this year. However, Woods observes a bottoming formation on both daily and weekly charts, with a bullish crossover in MACD and a breakout above $195 resistance. He suggests upside targets of $250-$265, representing 25-30% potential upside, with support at $165. The analysis highlights relative rotation within the cybersecurity sector, indicating that laggards like Zscaler may see renewed strength.

• Zscaler (ZS) shares fell as much as 65% from 52-week highs and remain down 13% year-to-date.
• CrowdStrike, Fortinet, Okta, and Palo Alto Networks have each gained over 100% year-to-date.
• Jay Woods identifies a bullish double bottom formation on Zscaler's weekly chart.

Fortinet Expands U.S. Presence with New Company-Owned Innovation Hub in New York City

Fortinet announced the opening of a new company-owned innovation hub in New York City, expanding its U.S. presence. This is part of Fortinet's strategic growth and investment in innovation.

OpenAI Daybreak speeds SentinelOne malware analysis from weeks to hours

OpenAI has announced Daybreak, a capability that enables SentinelOne to reverse engineer malware in about eight hours, down from four to six weeks. Gregor Stewart, Chief AI Officer at SentinelOne, says this allows researchers to investigate more threats and map the malware landscape, revealing connections between samples. The technology gives more team members access to expert-level cyber capabilities. SentinelOne plans to integrate OpenAI's cyber capabilities into code creation so developers can address security issues during development. The announcement highlights the growing role of AI in cybersecurity operations.

• OpenAI Daybreak reduces malware reverse engineering time from four to six weeks to about eight hours.
• SentinelOne uses OpenAI Daybreak for malware analysis and relationship mapping.
• Gregor Stewart, Chief AI Officer at SentinelOne, is quoted.

AI Cracks Napoleon's Secret Letter After 217 Years

OpenAI's GPT-6 Astra model has deciphered a 217-year-old letter from Napoleon Bonaparte to officer Auguste de Marmont, written in 1809. The encryption, previously undeciphered due to a lost key, was cracked by developer Carter Church of SentinelOne using simulated annealing. Church, with no cryptography background, trained the AI on French literature and Marmont's letters. After six hours of computation, the AI decoded the remaining symbols, revealing troop positions including 40,000 Bavarian soldiers near Munich or Passau and an elite corps near Augsburg. Human cryptographers had previously decoded 33 of the 155 unique symbols, but the AI completed the task, discovering that some symbols represented whole words. Church was inspired by developer Carter Leffen, who used the same model to crack an Enigma-encrypted message.

• GPT-6 Astra by OpenAI deciphered a 217-year-old letter from Napoleon Bonaparte to Auguste de Marmont.
• Carter Church of SentinelOne used simulated annealing to crack the code, with no prior cryptography background.
• The AI was trained on French literature and Marmont's letters, running for six hours to solve the cipher.

SentinelOne stock: AI boost, 20% revenue growth, profitability

CNBC Pro contributor Kevin Simpson explains why he initiated a new position in cybersecurity firm SentinelOne. The company reported 21% revenue growth to $292 million and 22% ARR growth to $1.218 billion in its fiscal Q2. Non-GAAP operating margin improved to 10% from 2% a year ago, while non-GAAP EPS doubled to 8 cents. SentinelOne is expanding beyond endpoint security into cloud, identity, data, and AI security, with emerging solutions now about half of total ARR. In September, it extended its Wayfinder Threat Hunting service across AWS, Microsoft Azure, and Google Cloud. Simpson highlights the financial inflection point: strong growth combined with improving profitability, and the AI-driven demand for automated threat response. Despite a slight gross margin dip to 77%, he sees the company as a broader cybersecurity platform with a larger addressable market.

• SentinelOne revenue grew 21% to $292 million in fiscal Q2.
• ARR rose 22% to $1.218 billion.
• Non-GAAP operating margin improved to 10% from 2% year-over-year.