Fortinet (FTNT) — Q2 2026 Earnings Preview

1. Earnings Preview

Key Takeaway: The setup favors a beat — consensus has barely moved since the Q1 print, the bar is achievable given management’s raised guidance, and the structural AI-driven demand tailwind remains intact; the single biggest swing factor is whether product revenue growth can sustain its Q1 momentum or shows any deceleration.

Heading into Q2 2026, Fortinet carries one of the most constructive setups in cybersecurity. Management raised full-year guidance across all top-line metrics after a blowout Q1 (billings +31% YoY, product revenue +41%, EPS $0.82 vs. consensus ~$0.62), and Q2 guidance midpoints of $1.88B revenue and $2.14B billings sit essentially in line with current consensus of $1.89B and $2.14B respectively — implying the bar is not stretched. Estimate revisions have been remarkably stable since the May 6 print, with Q2 EPS consensus moving from ~$0.746 to $0.747 and billings barely shifting, suggesting the Street has high conviction in guidance rather than building in incremental upside. The stock surged ~65% from the Q1 earnings date through mid-July before pulling back ~10% into the print, meaning the multiple has expanded dramatically (NTM EV/EBITDA ~35x vs. ~21x at the Q1 date) but has partially digested the beat. The key wildcard is the durability of AI data center security demand: management explicitly characterized Q1 AI-driven product wins as structural and multi-quarter, but any signal of pull-forward or deal slippage — particularly in the large-enterprise segment where deals >$1M grew 60%+ in Q1 — could pressure the stock despite an in-line print.

2. KPIs & Consensus Expectations

Key Takeaway: Consensus sits essentially at guidance midpoints for both revenue and billings, making this a clean execution test rather than a beat-the-bar setup. Billings is the bigger swing factor — a billings beat signals durable demand and accelerates the H2 service revenue inflection thesis; a miss would raise questions about whether Q1 was a pull-forward.

Table 1 — Current Quarter Snapshot (Q2 2026)

Sources: Visible Alpha consensus and actuals data. Q2 2026 guidance midpoints from Fortinet Q1 2026 earnings release and call (May 6, 2026). Revenue guidance: $1.83B–$1.93B; Billings guidance: $2.09B–$2.19B; Non-GAAP operating margin guidance: 33%–35%; Non-GAAP EPS guidance: $0.72–$0.76.

Table 2 — Beat/Miss History (Last 8 Quarters) — Top 2 KPIs: Total Billings & Non-GAAP EPS

Source: Visible Alpha consensus and actuals data. Pattern: Fortinet has beaten billings consensus in 7 of the last 7 available quarters, with the magnitude of beats accelerating sharply in Q1 2026 (+15.9%) and Q4 2025 (+5.9%), driven by AI data center demand and OT security; EPS beats have been consistent and large, reflecting operating leverage and disciplined buybacks.

3. Guidance & Commentary Evolution

Key Takeaway: Guidance was raised materially at Q1 earnings (May 6) and has not been revised since — no 8-K, conference update, or pre-announcement has altered the numbers. Management tone has shifted from cautiously optimistic to explicitly confident, with CFO Ohlgart stating the company is “now super confident our growth rates are picking up.”

Source: Fortinet Q1 2026 earnings release and earnings call transcript (May 6, 2026); Visible Alpha consensus data. No post-Q1 guidance revisions were identified via 8-K filings or conference appearances through July 29, 2026.

4. Guidance vs. Estimate Revision Tracker

Key Takeaway: Estimates have been remarkably stable since the Q1 print — Q2 billings consensus moved only ~$3M and EPS moved less than $0.002 over the 11 weeks since May 6 — signaling the Street has high conviction in guidance and is not building in incremental upside or downside. The gap between consensus and guidance midpoints is minimal (<1%), suggesting the bar is achievable but not easy to beat materially.

Source: Visible Alpha revision history data (weekly, May 15 – July 29, 2026); Fortinet Q1 2026 earnings call guidance (May 6, 2026). Post-Q1 baseline uses the May 15, 2026 weekly snapshot as the first clean post-print reading. Estimates have been essentially flat since the Q1 print, confirming the Street is anchored to guidance rather than building in incremental upside.

5. Stock Performance

Key Takeaway: The ~67% rally from the Q1 earnings date (May 6) to the July peak was almost entirely multiple expansion — NTM EV/EBITDA expanded from ~21x to ~35x — driven by the AI data center security narrative and the magnitude of the Q1 beat, not estimate revisions (which barely moved). The stock has since pulled back ~10% from its July 14 peak of ~$167, suggesting some profit-taking ahead of the print.

Chart: FTNT vs. HACK (Cybersecurity ETF) vs. S&P 500 — Indexed to 100 at May 6, 2026 (Q1 2026 Earnings Date)

FTNT vs. HACK (Cybersecurity ETF) vs. S&P 500 — Indexed to 100 at May 6, 2026 (Q1 2026 Earnings Date). Source: Yahoo Finance / Stock Price Data.

Source: Yahoo Finance / Stock Price Data. HACK (ETFMG Prime Cyber Security ETF) used as the cybersecurity sector benchmark. FTNT’s outperformance vs. HACK reflects both the magnitude of the Q1 beat and the AI data center security premium the market has assigned to Fortinet’s ASIC-differentiated platform.

Valuation Context: NTM EV/EBITDA expanded from ~20.6x (at Q1 earnings date) to ~35.4x currently (+71.8%), while NTM EV/Sales expanded from ~7.6x to ~13.2x (+72.7%). The 3-month price return of +75% was almost entirely multiple expansion, not earnings revision. This creates a higher bar for the stock to react positively on the print — execution must be clean and guidance must hold or be raised.

6. Peer Commentary — Current-Quarter Read-Throughs

Scope: This section includes only peer commentary from May 30 – July 29, 2026 that pertains to the peer’s then-current or future reporting quarter (i.e., intra-quarter demand signals, forward guidance, or post-earnings outlooks for Q2 2026 or beyond). Commentary about prior-quarter results only is excluded. All peers report on calendar quarters unless noted.

Palo Alto Networks (PANW) — Q3 FY2026 Earnings Call (June 2, 2026)

Relevance: PANW’s fiscal Q3 (ended April 2026) is the quarter immediately preceding FTNT’s Q2 2026. PANW’s Q4 FY2026 guidance and demand commentary directly read through to FTNT’s Q2 2026 environment.

• Firewall demand at decade highs: PANW reported next-generation firewall bookings rose “nearly 40% year-over-year” in Q3, its “strongest hardware performance in a decade,” driven by AI data center build-outs and new buyer classes including sovereign infrastructure providers and AI labs. Management stated: “When more inspection is needed, hardware is the cheapest and fastest throughput mechanism to inspect the data” and expects this trend to “continue for the next few quarters, if not a few years.”
• SASE ARR +40% YoY: PANW’s SASE ARR reached $1.6B, growing 40% YoY, “more than 2x the overall market growth rate,” with a “nearly 50% increase in SASE net new NGS ARR over the trailing 12 months.” This validates the SASE market expansion that Fortinet is targeting with its Sovereign SASE and SD-WAN/SASE bundle.
• AI security as structural demand driver: CEO Nikesh Arora stated “Mythos has increased the terminal value of the entire cybersecurity industry” and that AI-driven attacks create “a longer-term G in your model for long-term growth rate for cybersecurity.” PANW raised full-year FY2026 guidance across all metrics, citing “strong Q4 pipeline.”
• Q4 FY2026 guidance (Jul–Oct 2026 quarter): Revenue guided to $3.345B–$3.355B (+32% YoY); NGS ARR $8.9B–$8.95B (+59%–60%). Management noted “robust growth” and does not expect demand to “get weak in Q4 or Q1 or Q2.”
• FTNT read-through: Strongly positive. Firewall demand at decade highs, AI data center security as a new buyer class, and SASE market expansion all directly benefit Fortinet’s product and SASE billings in Q2 2026. PANW’s raised guidance and strong Q4 pipeline signal the demand environment remained robust through June.

CrowdStrike (CRWD) — Q1 FY2027 Earnings Call (June 3, 2026)

Relevance: CRWD’s fiscal Q1 FY2027 (ended April 2026) and its Q2 FY2027 guidance (May–July 2026) directly overlap with FTNT’s Q2 2026 calendar quarter.

• AI-driven demand inflection: CEO George Kurtz described the “Mythos moment” in April as a watershed: “In April of Q1, more happened in a matter of weeks in cybersecurity than in the whole year prior.” He stated “AI is driving structural demand for cybersecurity that compounds, not decelerates” and that “the more AI an organization adopts, the more cybersecurity it requires.”
• Net new ARR guidance raised by 500+ bps: CRWD raised full-year FY2027 net new ARR growth expectations by more than 500 basis points, citing “record Q2 pipeline and strong momentum across competitive displacements, Falcon Flex adoption and platform consolidation.” Q2 FY2027 ARR guided to $5.793B–$5.795B (+24% YoY); total revenue $1.436B–$1.442B (+23% YoY).
• AIDR as fastest-growing product: CRWD’s AI Detection and Response (AIDR) product saw ending ARR grow “more than 250% sequentially” with Q2 pipeline already exceeding $50M. This signals enterprises are actively spending on AI security tools in the current quarter.
• FTNT read-through: Positive for FTNT’s SecOps and AI-driven security demand. CRWD’s record Q2 pipeline and raised guidance confirm the AI security spending environment is accelerating into FTNT’s Q2 2026 reporting period. The “Mythos moment” demand surge is a shared tailwind.

Rubrik (RBRK) — Q1 FY2027 Earnings Call (June 4, 2026)

Relevance: RBRK’s fiscal Q1 FY2027 (ended April 2026) and Q2 FY2027 guidance (May–July 2026) overlap with FTNT’s Q2 2026 quarter.

• Cyber resilience demand surge: CEO Bipul Sinha stated “Mythos is driving more customer conversations around cyber resilience and recovery” and that this is “one of the reasons why we have raised our top line guidance for the rest of the year.” He personally conducted 140 CIO/CISO meetings in Q1, up 50% sequentially.
• Raised FY2027 guidance: Subscription ARR guided to $1.854B–$1.862B (+27% YoY); total revenue $1.638B–$1.648B. Management cited “strong demand for resilience in the marketplace” and “strong early demand for agent security and governance.”
• FTNT read-through: Moderately positive. RBRK’s raised guidance and CEO commentary confirm that the AI-driven threat environment is generating incremental security budget in the current quarter. RBRK’s focus on cyber resilience is complementary to FTNT’s network security and SecOps positioning.

Zscaler (ZS) — Zenith Live Investor Session (June 9, 2026)

Relevance: ZS’s fiscal Q3 FY2026 ended April 2026; this investor session provided intra-quarter demand commentary for ZS’s Q4 FY2026 (May–July 2026), which directly overlaps with FTNT’s Q2 2026.

• AI security urgency at fever pitch: CEO Jay Chaudhry stated the urgency for addressing AI-driven threats (Mythos) is “actually higher in many ways” than during COVID, with Board-level discussions occurring weekly or bi-weekly. He noted “every CIO and CISO” is running a task force on AI security.
• AI Protect crossed $100M in bookings: ZS’s AI Protect solution, launched in January 2026, crossed “$100 million over the last 12 months” in bookings, demonstrating rapid monetization of AI security products in the current demand environment.
• SASE demand: Mythos as tailwind: Chaudhry stated Mythos is “becoming an accelerant for adoption of Zero Trust” and is driving customers who have ZIA to add ZPA, and partial ZPA customers to go to full ZPA. This validates the SASE upsell motion that Fortinet is executing with its SD-WAN/SASE bundle.
• Non-seat ACV rising: ZS’s non-seat-based ACV rose from ~25% to 30% of new ACV in Q3, signaling a shift toward consumption-based AI security monetization that is still in early innings across the industry.
• FTNT read-through: Positive for FTNT’s SASE and AI security demand. ZS’s commentary confirms that the AI-driven security spending environment was robust through June 2026, with customers actively expanding SASE deployments and adding AI security tools — directly relevant to FTNT’s Unified SASE and FortiOS 8.0 AI capabilities.

Cloudflare (NET) — Investor Day (June 9, 2026)

Relevance: NET’s investor day provided forward-looking demand commentary for its current fiscal quarter (Q2 2026, April–June 2026), overlapping with FTNT’s Q2 2026.

• Agentic AI urgency: President of Revenue Mark Anderson stated “since the beginning of this year, 2026, Agentic AI is all anyone wants to talk about” and that “the urgency level has gone from 0 to 100,” with customers moving “from pilots and experimentation into production every single day.”
• Security modernization urgency: Anderson noted “CISOs is fear. They’ve realized that this year, legacy security approaches are just not effective,” leading to “so much urgency around security modernization.”
• AI as Zero Trust killer use case: CEO Matthew Prince stated “AI is kind of the killer use case to drive Cloudflare’s version of zero trust” and that “for the next two years, every security company is going to be wildly busy.”
• FTNT read-through: Positive. NET’s commentary confirms that AI-driven security modernization urgency was at peak levels through June 2026, directly supporting FTNT’s Q2 demand environment for both network security and SASE products.

Okta (OKTA) — Evercore TMT Global Conference (June 3, 2026)

Relevance: OKTA’s fiscal Q1 FY2027 ended April 2026; conference commentary provided intra-quarter demand signals for Q2 FY2027 (May–July 2026), overlapping with FTNT’s Q2 2026.

• AI agent security pipeline at record levels: OKTA’s Okta for AI Agents product (launched April 30, 2026) generated the “largest pipeline build for a net new product” in company history. Management stated “91% of customers report they know they have agents live in production and only 22% believe they have them secured properly,” creating urgent demand.
• Net new investment, not reallocation: OKTA noted AI security spending is “both” reallocation and “a lot of net new investment” driven by Board-level exposure, with “net new funding coming in.” This confirms incremental security budget is being created, not just shifted.
• FTNT read-through: Positive for FTNT’s AI-driven security demand. OKTA’s record pipeline for AI agent security products confirms that enterprises are actively allocating new budget to AI security in the current quarter, supporting FTNT’s FortiOS 8.0 Agentic AI and shadow AI visibility capabilities.

Tenable (TENB) — William Blair Growth Stock Conference (June 4, 2026)

Relevance: TENB’s conference commentary provided forward-looking demand signals for its current fiscal quarter (Q2 2026, April–June 2026), overlapping with FTNT’s Q2 2026.

• AI creates $35B incremental TAM: TENB management stated AI creates an “incremental $35 billion per year opportunity” for exposure management, in addition to the existing $30B TAM. The mean time from vulnerability disclosure to exploit is now 1.6 days, while average remediation time is 40 days — creating urgent demand for automated security tools.
• Platform consolidation driving larger deals: TENB has “doubled the number of six-figure customers and tripled the number of seven-figure customers” over the past few years, with platform customers spending 2–3x more than non-platform customers. This validates the large-enterprise consolidation trend benefiting FTNT.
• FTNT read-through: Positive. TENB’s commentary confirms that AI-driven vulnerability proliferation is creating incremental security budget and driving platform consolidation — both tailwinds for FTNT’s large-enterprise billings in Q2 2026.

F5 Networks (FFIV) — Q3 FY2026 Earnings (July 27, 2026)

Relevance: FFIV’s fiscal Q3 (ended June 2026) is the most recent peer print before FTNT’s Q2 2026 earnings, providing a same-quarter demand read.

• Strong beat and raised guidance: FFIV reported EPS of $4.73 vs. Street $3.98 and revenue of $865M vs. $832M expected, with operating margins outperforming by ~160bps. Q4 guidance midpoints of EPS $4.20 and revenue $880M were both ahead of consensus ($4.13 and $857M respectively).
• FTNT read-through: Positive. FFIV’s strong beat and raised guidance for the quarter ending June 2026 confirms that enterprise network security spending remained robust through the end of FTNT’s Q2 2026 reporting period. FFIV’s outperformance on margins also suggests pricing power in the network security market.

ServiceNow (NOW) — Q2 2026 Earnings (July 22, 2026)

Relevance: NOW’s Q2 2026 (April–June 2026) is the same calendar quarter as FTNT’s Q2 2026, providing a direct same-quarter enterprise software demand read.

• Better-than-expected results: NOW reported better-than-expected earnings and revenue, with shares rising in extended trading. CEO Bill McDermott highlighted the company’s “kill switch” feature for rogue AI agents and stated that rapid AI adoption is “strengthening ServiceNow’s competitive position.”
• AI security as growth driver: NOW expanded its cybersecurity presence through acquisitions of Veza and Armis (both closing in 2026), and McDermott described AI Control Tower as giving companies “a central place to monitor, manage, and secure growing numbers of AI agents.” Full-year guidance was raised.
• FTNT read-through: Positive. NOW’s beat and raised guidance for the same calendar quarter confirms that enterprise IT spending on AI-related security and workflow automation remained strong through June 2026, supporting FTNT’s SecOps and AI-driven security demand.

Summary Read-Through: Across all relevant peers reporting in the May 30 – July 29, 2026 window, the demand signal is uniformly positive for FTNT’s Q2 2026. The “Mythos moment” AI security demand surge, firewall demand at decade highs (PANW), record pipelines (CRWD, OKTA), and same-quarter beats from FFIV and NOW all point to a robust demand environment through June 2026. The primary risk is whether FTNT’s specific execution — particularly in large-enterprise deals and SASE attach rates — matched the broader market tailwind.

7. Material News & Developments

Key Takeaway: The most important development since Q1 earnings is Fortinet’s announcement that it will use Intel’s foundry to manufacture its next-generation SP6 ASIC chip — a strategic validation of Fortinet’s proprietary silicon differentiation and a potential supply chain advantage heading into a period of elevated hardware demand.

• July 21, 2026 — Intel Foundry Partnership (SP6 ASIC): Fortinet announced its next-generation security chip, the SP6, will be manufactured on Intel’s Intel 4 process node, making Fortinet the first announced corporate customer for Intel Foundry under CEO Lip-Bu Tan. This is strategically significant: it validates Fortinet’s ASIC differentiation strategy, potentially provides supply chain diversification (Fortinet currently holds ~2 quarters of inventory for key components and ~1 year for proprietary ASICs), and signals continued investment in the “Three I’s” competitive framework. The announcement came as FTNT stock was near its all-time high, and management had stated on the Q1 call that it would “keep investing in its ASIC technology.”
• June 16, 2026 — Annual Meeting: Fortinet shareholders approved all proposals at the Annual General Meeting, including executive compensation and board appointments. No material governance changes.
• July 2, 2026 — Q2 2026 Earnings Date Announcement: Fortinet announced it would report Q2 2026 results on July 29, 2026 after market close, with a 4:30 PM ET conference call.
• May 6, 2026 — Q1 2026 Earnings Beat & Guidance Raise: Fortinet reported a blowout Q1 2026 — billings +31% YoY, product revenue +41%, EPS $0.82 vs. consensus ~$0.62 — and raised FY2026 guidance across all top-line metrics. Key highlights: OT billings +70%+, large-enterprise deals >$1M grew 60%+ in both count and value, record free cash flow of $1.01B, and FortiOS 8.0 launched with Agentic AI capabilities. Stock surged ~20% the following day.
• May–July 2026 — AI Data Center Security as Structural Demand Driver: Multiple AI infrastructure announcements (NVIDIA’s $750B+ in AI deals, AMD’s Helios rack system, Intel’s data center CPU surge) confirm that AI data center build-out is accelerating, directly supporting FTNT’s product revenue from AI data center security deployments. FTNT management cited AI data center security as a “consistent, multi-quarter deployment cycle” on the Q1 call.
• July 2026 — Elevated Threat Landscape (Nation-State Activity): NVIDIA CEO Jensen Huang and others cited elevated nation-state cyber activity (including AI-powered attack tools like Mythos) as a structural tailwind for security spending. FTNT management had cited “nation-state activity including elevated activity tied to the Iran conflict and ongoing Russian cyber threats in Europe” as demand drivers on the Q1 call.
• July 2026 — Microsoft Cybersecurity AI Launch: Microsoft launched MAI-Cyber-1-Flash and the Perception security platform (July 27, 2026), entering the AI cybersecurity market more aggressively. While this increases competitive intensity in SecOps, it also validates the market opportunity and may accelerate enterprise security budget allocation.
• July 2026 — Palo Alto Networks Named Top Cybersecurity Pick: William Blair analyst Jonathan Ho named PANW the firm’s top cybersecurity pick (July 21, 2026), citing customers “rushing to purchase firewalls ahead of expected price increases” and supply chain challenges. This firewall demand surge is a direct read-through to FTNT’s product billings.
• May 2026 — Share Repurchase Activity: Fortinet repurchased 10.6M shares for $827M in Q1 2026 and an additional 1.9M shares for $146M quarter-to-date as of the May 6 call. Remaining authorization was ~$766M as of May 6. Continued buybacks support EPS and signal management confidence.

8. Insider Transaction Activity

Key Takeaway: All insider transactions since the Q1 earnings date are 10b5-1 planned sales — there are no discretionary open-market sales or purchases. The absence of discretionary selling or buying is neutral; the planned sales are obligation-driven and do not signal negative conviction.

Source: SEC Form 4 filings. All transactions are coded ‘S’ (sale/disposition) under pre-established 10b5-1 trading plans. No open-market discretionary purchases or sales were identified in the period May 6 – July 29, 2026. The small share counts (particularly CFO Ohlgart’s recurring sales of 238–756 shares) are consistent with routine tax-withholding or scheduled liquidity transactions, not a signal of negative conviction.

9. Risks & Earnings-Day Watch Items

Key Risks

• Product revenue deceleration / pull-forward risk: Q1 product revenue grew 41% YoY, dramatically above expectations. Management stated minimal pull-forward was observed, but consensus Q2 product revenue of $639M implies a deceleration to ~+25% YoY. Any further deceleration below consensus would raise questions about whether Q1 was anomalous and could pressure the stock despite an in-line overall print.
• Valuation multiple compression risk: At ~35x NTM EV/EBITDA and ~13x NTM EV/Sales, FTNT is priced for perfection. Any guidance miss, tone shift, or macro deterioration could trigger multiple compression. The stock has already pulled back ~10% from its July 14 peak, suggesting some investors are de-risking ahead of the print.
• Service revenue inflection timing: Management has guided for service revenue growth to “pick up in the second half of the year.” Q2 service revenue consensus of $1.249B implies only +11.4% YoY growth — still below the product revenue growth rate. If service billings or deferred revenue metrics disappoint, the H2 inflection thesis could be questioned.
• Component cost / supply chain risk: FTNT implemented low single-digit price increases in Q1 to offset component cost inflation. If memory or other component costs escalate further (CXMT’s IPO and Chinese chip competition are creating market uncertainty), gross margins could be pressured. FTNT maintains ~2 quarters of inventory for key components and ~1 year for proprietary ASICs as a buffer.
• Competitive intensity in SASE: PANW’s SASE ARR grew 40% YoY and ZS is aggressively expanding its Zero Trust platform. While FTNT’s Sovereign SASE is differentiated, the competitive environment for SASE deals is intensifying. Any loss of SASE market share or slower-than-expected SD-WAN/SASE bundle attach rates could disappoint.
• AI spending circularity concerns: Broader market concerns about NVIDIA’s circular AI financing ($750B+ in deals) and whether AI data center demand is real or artificially inflated could create sector-wide multiple compression in AI-adjacent names, including FTNT.

Earnings-Day Watch Items

1. Total billings vs. $2.142B consensus: The single most important number. A beat of 3%+ would be highly positive; a miss would be a significant negative given the stock’s valuation.
2. Product revenue vs. $639M consensus: Watch for AI data center deal commentary — are wins accelerating, stable, or showing any signs of lumpiness? Management’s characterization of demand durability is critical.
3. Service billings and deferred revenue growth: These are the leading indicators for the H2 service revenue inflection. Service billings grew 27% in Q1; any acceleration would be highly positive.
4. FY2026 guidance revision: Will management raise the full-year billings and revenue guidance again? Current FY guidance midpoints ($8.95B billings, $7.79B revenue) leave room for a raise if Q2 beats. A raise would be the most positive catalyst.
5. Large-enterprise deal metrics: Deals >$1M grew 60%+ in Q1. Watch for Q2 commentary on deal count, deal value, and pipeline quality — particularly in AI data center and OT security.
6. OT billings growth: OT billings grew 70%+ in Q1. Any commentary on whether this pace is sustainable or was driven by one-time factors.
7. Sovereign SASE update: Management described Sovereign SASE as “probably almost the same size as cloud-based SASE, probably even bigger” in Q1. Any quantification or update on this segment would be a positive catalyst.
8. Intel SP6 ASIC update: Any additional details on the Intel foundry partnership timeline, production ramp, or cost implications for the SP6 chip.
9. Share repurchase activity: With ~$766M remaining authorization as of May 6, watch for Q2 buyback activity and any new authorization announcement.
10. Non-GAAP operating margin: Guided 33%–35% for Q2. Any upside to 35%+ would signal operating leverage is tracking ahead of plan.