Fortinet (FTNT) AI Stock Analysis

• Market Cap: $65.30B
• Dividend Yield: N/A
• Average Volume (3M): 4.49M
• Price to Earnings (P/E): 34.0
• Beta (1Y): 1.08
• Revenue Growth: 14.46%
• EPS Growth: 48.06%
• Country: US
• Employees: 14,556
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 766,266,050
• 10 Day Avg. Volume: 4,482,405
• 30 Day Avg. Volume: 4,485,016
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 12.33
• Enterprise Value/Gross Profit: 15.12
• Enterprise Value/Ebitda: 32.53
• 1Y Price Target: $86.96
• Price Target Upside: 2.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 34
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): $6.75B

• Rating: 78 Outperform
• Price Target: $96.00 ▲(12.65% Upside)

Fortinet's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust profitability and strategic growth initiatives in AI and cloud services position it well for future growth. Technical analysis and valuation indicate moderate optimism, with some caution due to high valuation levels and longer-term resistance.

Positive Factors

Strong Financial Performance

The robust financial performance with significant billing and revenue growth indicates a strong market position and effective business strategy, supporting long-term growth.

AI and Innovation

Continued investment in AI and innovation strengthens Fortinet's competitive edge, enhancing product offerings and driving future revenue streams.

Expansion in Large Enterprises

Growth in large enterprise deals reflects Fortinet's ability to capture high-value contracts, boosting revenue and reinforcing its market leadership.

Negative Factors

Service Revenue Growth Deceleration

Deceleration in service revenue growth may indicate challenges in maintaining past growth rates, potentially impacting future revenue stability.

Operating Margin Decline

A decline in operating margin suggests increased cost pressures, which could affect profitability if not managed effectively over the long term.

Flat Sequential Growth in Unified SASE

Flat sequential growth in a key segment may signal market saturation or competitive pressures, potentially limiting future expansion opportunities.

Fortinet Business Overview & Revenue Model

Company Description

Fortinet (FTNT) is a global cybersecurity company that provides broad, integrated, and high-performance security solutions across the IT infrastructure. Founded in 2000, Fortinet offers a range of products and services, including firewalls, intrusion prevention systems, antivirus software, and secure access solutions. The company serves various sectors, including enterprises, service providers, and government organizations, helping them protect their networks, data, and applications from cyber threats.

How the Company Makes Money

Fortinet generates revenue primarily through the sale of its cybersecurity products and subscription services. Its revenue model includes a mix of software, hardware, and services, with significant earnings coming from subscriptions and support services that provide ongoing security updates and technical assistance. Key revenue streams include the sale of FortiGate firewalls, which are central to its portfolio, along with cloud security solutions and endpoint protection. Additionally, Fortinet has established strategic partnerships with major technology providers and distributors, enhancing its market reach and driving further sales. The company's focus on offering integrated security solutions across various environments, including on-premises and cloud, contributes significantly to its recurring revenue and overall financial performance.

Fortinet Financial Statement Overview

Summary

Fortinet demonstrates strong financial performance with high profitability margins and robust revenue growth. The balance sheet has improved with positive equity, although the debt-to-equity ratio remains a concern. Cash flow generation is efficient, supporting overall financial health.

Income Statement

Fortinet demonstrates strong financial performance with high gross profit margins at 80.57% and significant net profit margins at 29.30% for TTM. Revenue growth rate of 12.27% from the previous year is robust, contributing to overall profitability. EBIT and EBITDA margins are also strong at 30.24% and 34.40% respectively, indicating efficient operational management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to negative equity in previous years, though it has improved to a positive equity of $1.49 billion recently. Return on Equity (ROE) is not calculable due to negative equity in earlier periods, but positive current equity suggests improved financial health. The equity ratio is 15.30%, indicating limited equity financing relative to assets.

Cash Flow

Fortinet's cash flow is strong, with a free cash flow growth rate of 8.54% and a high operating cash flow to net income ratio of 1.29 for TTM, indicating solid cash generation. The free cash flow to net income ratio is 1.08, showing an efficient translation of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.34B	5.96B	5.30B	4.42B	3.34B	2.59B
Gross Profit	5.17B	4.80B	4.07B	3.33B	2.56B	2.02B
EBITDA	2.40B	2.20B	1.47B	1.08B	727.70M	610.50M
Net Income	1.94B	1.75B	1.15B	857.30M	606.80M	488.50M
Balance Sheet
Total Assets	10.64B	9.76B	7.26B	6.23B	5.92B	4.04B
Cash, Cash Equivalents and Short-Term Investments	4.56B	4.07B	2.44B	2.21B	2.55B	1.84B
Total Debt	995.30M	994.30M	992.30M	990.40M	988.40M	0.00
Total Liabilities	8.58B	8.27B	7.72B	6.51B	5.12B	3.19B
Stockholders Equity	2.06B	1.49B	-463.40M	-281.60M	781.70M	856.00M
Cash Flow
Free Cash Flow	2.03B	1.88B	1.73B	1.45B	1.20B	957.80M
Operating Cash Flow	2.40B	2.26B	1.94B	1.73B	1.50B	1.08B
Investing Cash Flow	-784.00M	-727.40M	-649.30M	763.90M	-1.33B	-72.80M
Financing Cash Flow	-452.70M	-50.10M	-1.57B	-2.13B	82.80M	-1.17B

Fortinet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTNT, the sentiment is Negative. The current price of 85.22 is above the 20-day moving average (MA) of 84.83, above the 50-day MA of 82.89, and below the 200-day MA of 95.65, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTNT.

Fortinet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	79 Outperform	$285.90B	28.40	22.65%	2.25%	5.30%	3.07%
FTNT	78 Outperform	$65.30B	34.01	165.17%	―	14.46%	48.06%
PANW	78 Outperform	$145.20B	134.07	17.45%	―	14.87%	-57.43%
CHKP	76 Outperform	$20.78B	21.02	34.19%	―	6.31%	25.27%
ZS	71 Outperform	$51.97B	―	-2.70%	―	23.31%	31.04%
CRWD	66 Neutral	$133.99B	-446.20	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Fortinet Corporate Events

Fortinet Expands Share Buyback Program by $1 Billion

On August 21, 2025, Fortinet‘s Board of Directors authorized a $1 billion increase in its share repurchase program, bringing the total authorized amount to $9.25 billion, and extended the program to February 28, 2027. This move allows Fortinet flexibility in managing its capital structure and potentially enhances shareholder value, with repurchases dependent on market conditions and other factors.

The most recent analyst rating on (FTNT) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Fortinet stock, see the FTNT Stock Forecast page.

Fortinet’s Earnings Call Highlights Strong Growth and Optimism

Fortinet’s recent earnings call conveyed a positive sentiment, underscoring the company’s robust growth in revenue and billings, primarily driven by its Unified SASE and SecOps segments. Despite facing challenges such as service revenue growth deceleration and foreign exchange impacts, the overall outlook remains optimistic due to Fortinet’s strong performance and promising future growth potential.

Fortinet Reports Strong Q2 2025 Financial Results

Fortinet is a leading global cybersecurity company known for its innovative solutions in the convergence of networking and security, offering a comprehensive range of enterprise-grade products to secure data and devices worldwide. In its second quarter of 2025 financial results, Fortinet reported a 14% year-over-year increase in revenue, reaching $1.63 billion, and a 15% rise in billings to $1.78 billion, demonstrating strong business momentum and strategic growth. Key financial highlights include a GAAP operating margin of 28% and a non-GAAP operating margin of 33%, along with a significant increase in annual recurring revenue for its Unified SASE and Security Operations segments. The company also raised its full-year billings guidance by $100 million, reflecting confidence in its continued growth trajectory. Fortinet’s recognition as a leader in multiple Gartner Magic Quadrant reports underscores its strategic advantage and leadership in the cybersecurity industry. Looking ahead, Fortinet’s management remains optimistic about the company’s growth prospects, with expectations of continued revenue and billings growth in the third quarter and full year 2025.