“Looking ahead, in addition to SASE and secure ops, we expect OT security and AI to be key growth drivers over the next five years.”

In context

“Ken Xie (Founder, Chairman and CEO): Thank you Aaron, and thank you to everyone for joining our call. We are pleased with our strong performance in the first quarter, successfully balancing growth and profitability, including building a revenue growth of 14%, record first quarter operation margin of 34%. Record free cash flow of $783 million, a margin of 51%, and strong growth in secure operations and unified SASE with security service accounting for building growth of over 110%, which drove our unified SASE building growth to 18%, accounting for 25% of our business. Fortinet's leadership in innovation and long-term investment is evident in our market position as the number one deployed firewall vendor worldwide, a market leader in SD-WAN and OT security. With our strong SASE strategy and growth, we are confident we'll be number one in this space as well. The strong momentum behind our unified SASE pillar is evidenced by the customer reliance on our single OS platform. The typical SASE journey begins with the customer's initial purchase of Fortinet's industry-leading ASIC based FortiGate firewall powered by FortiOS. From there, the majority of large enterprise customers expand into SD-WAN before progressing into a FortiSASE solution. This expansion continues to grow; 73% of large enterprise customers have now adopted our SD-WAN solution and have either begun or are well-positioned to transition to FortiSASE, with our FortiSASE penetration among large enterprises increasing nearly 10% quarter-over-quarter to 11%. We remain the only vendor to have organically developed all of the core SASE capability within a single operational system for FortiOS, including next-gen firewall, SD-WAN, DLP, Secure Web Gateway, and CASB technologies. This native integration of networking and security reduces complexity and operational costs while enhancing user experience and ensuring security across both on-premise and cloud environments. In addition to our traditional SASE offering, we also offer sovereign SASE, our tailored solution for large enterprises and service providers that require full on-premise or in-country control of their data. With sovereign SASE, customers can deploy FortiSASE with their own data centers ensuring that all data is processed through customer-owned or country-specific locations to meet compliance requirements by country or industry regulations. This approach accelerates performance through our FortiASIC technology and is well-suited for highly regulated sectors such as finance, government, and healthcare. AI-driven secure operations building increased by 29%, accounting for 10% of our business as customers continue to consolidate multiple security vendors on our integrated and AI-enhanced Forti Fabric solution. Looking ahead, in addition to SASE and secure ops, we expect OT security and AI to be key growth drivers over the next five years. In OT security, a rapidly expanding market driven by a surge in connected devices, Fortinet is recognized as the only leader in the relevant advisory report supported by over a decade of strategic investment and specialized solution positioning us for continued growth. We also continue to invest in our AI capabilities, which we began developing more than 15 years ago, and now hold over 500 issued and pending AI patents, more than any other competitor. With our AI technology now integrated into a dozen products, new AI capabilities like FortiAI Assist for automating security tasks, FortiAI Protect for advanced threat detection, and FortiAI Secure AI for protecting AI infrastructure are advancing our offerings. Today, we announced the FortiGate 700G series, a high-performance firewall for mid-sized businesses and distributed enterprises, powered by our FortiASIC technology, which delivers a 5 to 10x performance advantage over our competitors and FortiOS, the only operational system recognized across five secure networking Gartner Magic Quadrants. This approach significantly lowers total cost of ownership and complexity while reducing energy consumption and driving Fortinet's continuous strong growth and market share gain in secure networking. 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 Keith and Christiane.”