Fortinet (FTNT)
NASDAQ:FTNT
Want to see FTNT full AI Analyst Report?
Top Page
Fortinet
(NASDAQ:FTNT)
Select Model
Select Model
Rating:77Outperform
Price Target:
$169.00
▲(106.50% Upside)
Action:Reiterated
Date:06/03/26
FTNT scores well on financial performance (strong margins and free cash flow) and is supported by a constructive earnings call with raised guidance. The score is held back by a stretched technical setup (overbought signals) and a demanding valuation (high P/E with no dividend yield provided).
Positive Factors
High margins and strong free cash flow
Sustained very high gross and operating margins combined with multi‑billion FCF provide durable cash generation to fund R&D, sales/marketing, and strategic investments. Strong cash conversion supports buybacks, de‑risking capital structure and enabling long‑term reinvestment without reliance on external financing.
Negative Factors
Services revenue conversion lag
Lag between billings and recognized services revenue reduces near‑term revenue visibility and can mask actual ARR growth. If conversion delays persist, they can compress reported services growth rates and create volatility in recurring revenue recognition despite strong sales activity.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and strong free cash flow
Sustained very high gross and operating margins combined with multi‑billion FCF provide durable cash generation to fund R&D, sales/marketing, and strategic investments. Strong cash conversion supports buybacks, de‑risking capital structure and enabling long‑term reinvestment without reliance on external financing.
Read all positive factors
Fortinet Key Performance Indicators (KPIs)
Any
Gross Profit by Type
Shows profitability across different product lines or services, highlighting which areas are most lucrative and where Fortinet might focus for growth.
Shows profitability across different product lines or services, highlighting which areas are most lucrative and where Fortinet might focus for growth.
Data provided by:
The Fly
The FlyFortinet (FTNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.06B
Dividend YieldN/A
Average Volume (3M)6.06M
Price to Earnings (P/E)56.3
Beta (1Y)1.27
Revenue Growth15.75%
EPS Growth6.24%
CountryUS
Employees14,556
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)2.60
Shares Outstanding732,648,400
10 Day Avg. Volume6,135,734
30 Day Avg. Volume6,059,249
Financial Highlights & Ratios
PEG Ratio4.54
Price to Book (P/B)47.68
Price to Sales (P/S)8.68
P/FCF Ratio26.51
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue13.98
Enterprise Value/Gross Profit17.32
Enterprise Value/Ebitda38.12
Forecast
1Y Price Target
$107.19Price Target Upside30.97% Upside
Rating ConsensusHold
Number of Analyst Covering32
EPS Forecast (FY)3.15
Revenue Forecast (FY)$7.80B
Fortinet Business Overview & Revenue Model
Company Description
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses that provide various security and networkin...
How the Company Makes Money
Fortinet primarily makes money by selling cybersecurity products and related services, with revenue generally split between product revenue and services revenue. Product revenue is generated mainly from sales of FortiGate hardware appliances and o...
Fortinet Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operating and financial results with high billings (+31%), revenue (+20%), outsized product growth (+41%), record margins and free cash flow, and raised guidance—underscoring broad-based demand (OT, SASE, AI security) and clear market-share momentum. Noted challenges include a services revenue conversion lag, component cost pressures requiring cautious pricing assumptions, some remaining supply-chain timing uncertainty, and analyst questions around SASE ARR cadence. Overall, the positive operational and financial momentum and increased guidance substantially outweigh the manageable near-term risks.Positive Updates
Strong Billings Growth
Total billings grew 31% year-over-year to $2.09 billion, driven by broad strength across secure networking and unified SASE.
Negative Updates
Services Revenue Conversion Lag
Despite strong product growth (+41%) and service billings acceleration (+27%), service revenue growth was modest at 11% and management noted the conversion from deferred revenue/billings to reported services revenue takes time and should pick up in the second half.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Billings Growth
Total billings grew 31% year-over-year to $2.09 billion, driven by broad strength across secure networking and unified SASE.
Read all positive updates
Company Guidance
Fortinet reiterated and raised its 2026 outlook, guiding Q2 billings of $2.09–$2.19 billion (midpoint +20% YoY), Q2 revenue $1.83–$1.93 billion (midpoint +15%), Q2 non‑GAAP gross margin 79.5%–80.5%, Q2 non‑GAAP operating margin 33%–35%, Q2 non‑GAAP EPS $0.72–$0.76 (assumes 736–740 million shares), Q2 infrastructure investments of $50–$100 million, a non‑GAAP tax rate of 18% and Q2 cash taxes of $160–$180 million; for the full year they now expect billings of $8.8–$9.1 billion (midpoint +18%), revenue of $7.71–$7.87 billion (midpoint +15%), service revenue of $5.09–$5.15 billion (midpoint +12%), non‑GAAP gross margin 79%–81%, non‑GAAP operating margin 33%–36%, non‑GAAP EPS $3.10–$3.16 (assumes 743–749 million shares), full‑year infrastructure investments of $350–$550 million, an 18% non‑GAAP tax rate and cash taxes of $400–$450 million, while managing the second half on a quarter‑by‑quarter basis.Fortinet Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.11B | 6.80B | 5.96B | 5.30B | 4.42B | 3.34B |
| Gross Profit | 5.74B | 5.50B | 4.80B | 4.07B | 3.33B | 2.56B |
| EBITDA | 2.61B | 2.46B | 2.20B | 1.47B | 1.08B | 727.70M |
| Net Income | 1.95B | 1.85B | 1.75B | 1.15B | 857.30M | 606.80M |
Balance Sheet | ||||||
| Total Assets | 9.88B | 10.39B | 9.76B | 7.26B | 6.23B | 5.92B |
| Cash, Cash Equivalents and Short-Term Investments | 3.29B | 3.58B | 4.07B | 2.44B | 2.21B | 2.55B |
| Total Debt | 496.80M | 996.30M | 994.30M | 992.30M | 990.40M | 988.40M |
| Total Liabilities | 8.89B | 9.15B | 8.27B | 7.72B | 6.51B | 5.12B |
| Stockholders Equity | 989.70M | 1.24B | 1.49B | -463.40M | -281.60M | 781.70M |
Cash Flow | ||||||
| Free Cash Flow | 2.44B | 2.23B | 1.88B | 1.73B | 1.45B | 1.20B |
| Operating Cash Flow | 2.80B | 2.59B | 2.26B | 1.94B | 1.73B | 1.50B |
| Investing Cash Flow | -494.00M | -599.10M | -727.40M | -649.30M | 763.90M | -1.33B |
| Financing Cash Flow | -3.68B | -2.37B | -50.10M | -1.57B | -2.13B | 82.80M |
Fortinet Technical Analysis
Positive
81.84
Price Trends
97.43
Positive
89.22
Positive
85.57
Positive
Market Momentum
12.60
Negative
83.94
Negative
87.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTNT, the sentiment is Positive. The current price of 81.84 is below the 20-day moving average (MA) of 120.35, below the 50-day MA of 97.43, and below the 200-day MA of 85.57, indicating a bullish trend. The MACD of 12.60 indicates Negative momentum. The RSI at 83.94 is Negative, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTNT.
Fortinet Risk Analysis
Fortinet disclosed 62 risk factors in its most recent earnings report. Fortinet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fortinet Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $242.50B | 257.05 | 15.49% | ― | 15.43% | -2.40% | |
78 Outperform | $195.73B | -1,195.13 | -4.15% | ― | 21.71% | -908.90% | |
77 Outperform | $109.06B | 56.27 | 155.65% | ― | 15.75% | 6.24% | |
72 Outperform | $504.50B | 42.32 | 25.14% | 2.09% | 9.21% | 25.97% | |
70 Outperform | $14.60B | 13.87 | 36.43% | ― | 5.84% | 27.53% | |
68 Neutral | $23.31B | -299.41 | -3.71% | ― | 24.61% | -91.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FTNT
Fortinet
148.86
45.98
44.69%
CHKP
Check Point
140.07
-89.81
-39.07%
CSCO
Cisco Systems
128.00
65.09
103.46%
PANW
Palo Alto Networks
297.18
100.06
50.76%
ZS
Zscaler
144.15
-150.88
-51.14%
CRWD
CrowdStrike Holdings
768.95
280.19
57.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.