Ken Xie on edge computing
From Fortinet Inc ($FTNT) Q1 2026 Earnings Call · · Castify Earnings Call
“The edge eat the cloud is more because uh kind of build ASIC for like a 20 30 years because we want to increase the computing power and also real-time processing on the on the on our appliance on the edge. Uh that that that's got a lot of criticized before which well why this kind of big long-term investment and compared to whether the cloud. Uh but definitely the the AI and also kind of the new trend you see the the edge the hour uh starting has show better value now.”
On , Ken Xie, Co-Founder, Chairman & Chief Executive Officer at Fortinet Inc, spoke about edge computing during Fortinet Inc ($FTNT) Q1 2026 Earnings Call on Castify Earnings Call.
About Ken Xie
Ken Xie, co-founder, chairman, and CEO of Fortinet, discussed the company's first quarter 2026 financial results on a May 7, 2026 earnings call, reporting that billings grew 31%, total revenue increased 20%, and product revenue grew 41%. Xie stated that the company generated a record $1 billion in free cash flow and raised its full-year guidance across all top-line metrics. He attributed the results to "strong execution and broader based demand" and said the convergence of networking and security, which he described as Fortinet's approach for 26 years, is "accelerating in the AI era." On the call, Xie commented on the AI data center opportunity, stating that customers not building their own AI infrastructure are "most afraid of traffic flows and shadow AI." He described a "hybrid approach" to deployment, saying it is "never 100% on the cloud, never 100% on the edge." Xie also addressed pricing policy, saying the company does not use cost increases "to increase margin" but instead adjusts prices to "maintain the healthy margin." He noted that some competitors "cannot come up the new function quick enough" and must use "multiple solution to meet one" Fortinet solution.