Fortinet (FTNT)
NASDAQ:FTNT
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Fortinet
(NASDAQ:FTNT)
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Rating:72Outperform
Price Target:
$88.00
▲(5.38% Upside)
Action:ReiteratedDate:02/06/26
FTNT scores well primarily due to strong profitability and free-cash-flow generation, reinforced by upbeat 2026 guidance and strong execution highlights from the earnings call. The score is held back by a weak technical trend (below key moving averages), a mid-range valuation multiple (P/E ~32.5 with no dividend yield), and balance-sheet variability with higher recent leverage alongside slowing recent growth.
Positive Factors
High gross & operating margins
Sustained very high gross margins and a stepped-up operating margin provide durable profitability levers: they fund continued R&D, sales expansion and infrastructure investment, support pricing flexibility versus peers, and make the business resilient across cycles and capital needs.
Negative Factors
Slowing revenue growth
Marked deceleration in revenue growth reduces the pace of scale benefits and challenges sustaining historic operating leverage. Over the medium term, slower top-line expansion heightens reliance on margin improvement and cash returns to maintain profitability per share growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross & operating margins
Sustained very high gross margins and a stepped-up operating margin provide durable profitability levers: they fund continued R&D, sales expansion and infrastructure investment, support pricing flexibility versus peers, and make the business resilient across cycles and capital needs.
Read all positive factors
Fortinet (FTNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.79B
Dividend YieldN/A
Average Volume (3M)6.29M
Price to Earnings (P/E)31.8
Beta (1Y)1.21
Revenue Growth14.78%
EPS Growth22.52%
CountryUS
Employees14,556
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.81
Shares Outstanding739,923,600
10 Day Avg. Volume6,917,909
30 Day Avg. Volume6,290,402
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 Cap0.98
Enterprise Value/Revenue8.91
Enterprise Value/Gross Profit11.02
Enterprise Value/Ebitda24.69
Forecast
1Y Price Target
$87.61Price Target Upside4.91% Upside
Rating ConsensusHold
Number of Analyst Covering27
EPS Forecast (FY)2.97
Revenue Forecast (FY)$7.60B
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 generates revenue primarily through the sale of security hardware, software licenses, and subscription services. Its key revenue streams include the sale of FortiGate firewalls and other security appliances, which provide essential networ...
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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, robust product acceleration, leadership in secure networking and Unified SASE, impressive margins and record cash generation, alongside disciplined capital returns and confident guidance for 2026. Headwinds discussed were manageable operational issues—memory/component pricing, short-term services revenue timing, and some quarterly volatility in SecOps billings—plus modest FX and debt-repayment effects. Overall the positive execution, market leadership, and reaffirmed multi-year targets materially outweigh the near-term operational and cost pressures.Positive Updates
Strong Q4 Billings and Revenue Growth
Total billings grew 18% year-over-year to $2.37 billion in Q4 2025; total revenue grew 15% year-over-year to $1.91 billion.
Negative Updates
Supply-Chain and Memory Price Pressure
Management highlighted higher memory and component prices as a supply-chain headwind; they have taken inventory measures (about six months on hand) and are implementing targeted price increases (announced appliance price actions in the ~5%–20% range depending on product).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Billings and Revenue Growth
Total billings grew 18% year-over-year to $2.37 billion in Q4 2025; total revenue grew 15% year-over-year to $1.91 billion.
Read all positive updates
Company Guidance
Fortinet guided Q1 2026 billings of $1.77–$1.87B (midpoint ≈ +14%) and revenue of $1.70–$1.76B (midpoint ≈ +12%), with non‑GAAP gross margin of 80–81%, non‑GAAP operating margin of 30–32%, non‑GAAP EPS of $0.59–$0.63 (assumes 746–750M shares), infrastructure investment of $80–$120M, a non‑GAAP tax rate of 18% and cash taxes of $45–$50M (and a $500M senior debt tranche maturing at end‑Q1). For full‑year 2026 they guided billings of $8.4–$8.6B (midpoint ≈ +13%), revenue of $7.5–$7.7B (midpoint ≈ +12%), service revenue of $5.05–$5.15B (midpoint ≈ +11%) with non‑GAAP gross margin 79–81%, non‑GAAP operating margin 33–36%, non‑GAAP EPS $2.94–$3.00 (assumes 747–753M shares), infrastructure investment $350–$450M, an 18% tax rate and cash taxes of $350–$400M; the company reaffirmed achieving the Rule of 45 for the seventh consecutive year and reiterated midterm targets of product revenue growth of ~10–15% and billings/revenue CAGRs above 12%.Fortinet Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
62
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.80B | 5.96B | 5.30B | 4.42B | 3.34B |
| Gross Profit | 5.50B | 4.80B | 4.07B | 3.33B | 2.56B |
| EBITDA | 2.46B | 2.20B | 1.47B | 1.08B | 727.70M |
| Net Income | 1.85B | 1.75B | 1.15B | 857.30M | 606.80M |
Balance Sheet | |||||
| Total Assets | 10.39B | 9.76B | 7.26B | 6.23B | 5.92B |
| Cash, Cash Equivalents and Short-Term Investments | 3.58B | 4.07B | 2.44B | 2.21B | 2.55B |
| Total Debt | 996.30M | 994.30M | 992.30M | 990.40M | 988.40M |
| Total Liabilities | 9.15B | 8.27B | 7.72B | 6.51B | 5.12B |
| Stockholders Equity | 1.24B | 1.49B | -463.40M | -281.60M | 781.70M |
Cash Flow | |||||
| Free Cash Flow | 2.23B | 1.88B | 1.73B | 1.45B | 1.20B |
| Operating Cash Flow | 2.59B | 2.26B | 1.94B | 1.73B | 1.50B |
| Investing Cash Flow | -599.10M | -727.40M | -649.30M | 763.90M | -1.33B |
| Financing Cash Flow | -2.37B | -50.10M | -1.57B | -2.13B | 82.80M |
Fortinet Technical Analysis
Positive
83.51
Price Trends
81.80
Positive
81.08
Positive
84.91
Negative
Market Momentum
0.21
Negative
55.24
Neutral
84.75
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 83.51 is above the 20-day moving average (MA) of 82.05, above the 50-day MA of 81.80, and below the 200-day MA of 84.91, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 84.75 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 60 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $330.61B | 23.23 | 23.64% | 2.09% | 8.91% | 14.53% | |
74 Outperform | $138.61B | 71.18 | 15.49% | ― | 15.30% | -60.71% | |
72 Outperform | $61.79B | 31.84 | 123.64% | ― | 14.78% | 22.52% | |
70 Outperform | $108.17B | -686.05 | -4.68% | ― | 22.05% | -341.24% | |
69 Neutral | $15.20B | 18.84 | 36.62% | ― | 6.31% | 25.27% | |
66 Neutral | $22.85B | ― | -3.48% | ― | 23.24% | -8.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FTNT
Fortinet
83.51
-16.42
-16.43%
CHKP
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145.87
-73.54
-33.52%
CSCO
Cisco Systems
83.70
26.88
47.30%
PANW
Palo Alto Networks
173.78
0.76
0.44%
ZS
Zscaler
137.85
-64.27
-31.80%
CRWD
CrowdStrike Holdings
426.51
48.50
12.83%
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.