Fortinet’s Mixed Financial Outlook and Hold Rating Amid Slower Services Revenue Growth

Needham analyst Mike Cikos has maintained their neutral stance on FTNT stock, giving a Hold rating yesterday.

Mike Cikos has given his Hold rating due to a combination of factors influencing Fortinet’s financial outlook. The company reported a mixed quarter, with billings surpassing expectations and a slight increase in the guidance range for the fiscal year 2025. However, the revenue guidance for the full year was narrowed, indicating some challenges ahead.
The primary concern is the slower growth in Services Revenue, which is linked to a previous decline in Product Revenue. Although Fortinet is introducing new innovations like a new ASIC and FortiOS, the anticipated improvement in Services Revenue is expected only in the latter half of 2026. These mixed signals contribute to the Hold rating, as the company’s future performance remains uncertain in the short term.

In another report released yesterday, Robert W. Baird also maintained a Hold rating on the stock with a $86.00 price target.