Fortinet, Inc. (NASDAQ:FTNT) reported its Q1 results, highlighted by a record product revenue growth of 54.1% year-over-year, which was driven by demand for SD-WAN and OT security.

Quarterly revenue and EPS came in at $954.8 million and $0.94, beating the consensus estimates of $884.9 million and $0.80. Billings were $1.16 billion, compared to the consensus estimate of $1.08 billion.

The better-than-expected quarterly results reflected strong demand, broad-based execution across products/regions, and success in selling to larger customers.

Analysts at Oppenheimer provided their views on the quarterly results, stating they were impressed with the upmarket success and are particularly encouraged by the strong momentum for SD-WAN, with management pinpointing it as a key driver of product growth.

While the strong product revenue impacted gross margins, the analysts believe the company can benefit from recent price increases to help mitigate margin pressure and drive further growth. Overall, the analysts remain bullish, and believe the company is well-positioned to capitalize on a strong demand environment and benefit from multiple industry tailwinds.