Jefferies ponechala doporučení pro Fortinet (FTNT) na stupni „držet“. Klíčový bude výhled pro rok 2027, protože tržní konsenzus očekává růst tržeb z produktů jen o 9 %.
Jefferies has maintained a 'hold' rating on Fortinet Inc (NASDAQ:FTNT) arguing that its next earnings outlook will matter more than another strong quarter as investors assess whether product growth can endure into financial year 2027.
The broker expects product revenue growth of around 50% year on year in the third quarter, well above the 31% consensus forecast, supported by positive industry checks, pricing increases and accelerated firewall replacement activity.
However, Jefferies believes the fourth-quarter guidance and any initial framework for 2027 will be more important, as investors remain wary of a potential slowdown following several quarters of strong growth.
A survey of value-added resellers (VARs), which sell and support cybersecurity products, found the US cybersecurity company's average performance was 2.5% above plan, up from 2.3% in the previous quarter and ahead of the survey average of 1.5%.
The survey also found that 54% of respondents had observed customers bringing forward firewall purchases, supporting the broker's view that replacement demand could sustain momentum for another two to three quarters.
Jefferies expects fourth-quarter product revenue guidance to exceed the current consensus forecast of $772 million, representing annual growth of 11.7%, while leaving room for further outperformance.
The broker noted that the consensus forecast for 2027 implies product revenue growth of just 9%, with some investors questioning whether Fortinet can deliver any growth as comparisons become more demanding.
Management has previously outlined a framework for annual product revenue growth of 10% to 15%, while Jefferies believes the current replacement cycle could have further room to run.
Fortinet has recorded three quarters of product growth above 20% during the current cycle, compared with 10 quarters during the pandemic-era refresh cycle, suggesting that replacement demand may continue to support results.
Recent price increases should also provide a tailwind into the first quarter of 2027, with average selling prices potentially rising by more than 10% in the second half, although growth will increasingly depend on underlying demand as those increases feed through.
Jefferies also expects third-quarter billings, a measure of customer orders invoiced, to exceed expectations by a mid-to-high single-digit percentage, against guidance implying growth of 27% at the midpoint.
Investors will also watch current services billings, which Jefferies expects to accelerate from 16% annual growth in the second quarter, with growth above 20% still achievable as product sales generate follow-on service revenue.
Despite the positive near-term outlook, Jefferies warned that tougher comparisons could constrain further upside until Fortinet provides clearer evidence of sustainable growth in 2027.
The broker noted that Fortinet trades at 37 times the estimated calendar 2027 free cash flow, below Palo Alto Networks at 50 times and broadly in line with Zscaler at 36 times.
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The upcoming report from Fortinet (FTNT - Free Report) is expected to reveal quarterly earnings of $0.86 per share, indicating an increase of 16.2% compared to the year-ago period. Analysts forecast revenues of $2.06 billion, representing an increase of 19.5% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Fortinet metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenue- Services' stands at $1.33 billion. The estimate suggests a change of +14.1% year over year.
Analysts expect 'Revenue- Product' to come in at $720.87 million. The estimate suggests a change of +28.9% year over year.
Analysts' assessment points toward 'Revenue- Services- Security subscription' reaching $770.45 million. The estimate points to a change of +14.7% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenue- Services- Technical support and other' should come in at $572.35 million. The estimate indicates a year-over-year change of +16%.
Analysts predict that the 'Total billings (Non-GAAP)' will reach $2.30 billion. Compared to the current estimate, the company reported $1.81 billion in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Total deferred revenue' will likely reach $7.92 billion. Compared to the present estimate, the company reported $6.65 billion in the same quarter last year.
Based on the collective assessment of analysts, 'Gross profit- Product Non-GAAP' should arrive at $494.12 million. Compared to the present estimate, the company reported $380.60 million in the same quarter last year.
Analysts forecast 'Gross profit- Service Non-GAAP' to reach $1.16 billion. Compared to the present estimate, the company reported $1.03 billion in the same quarter last year.
The average prediction of analysts places 'Gross profit- Product' at $485.44 million. The estimate compares to the year-ago value of $378.60 million.
It is projected by analysts that the 'Gross profit- Services' will reach $1.15 billion. Compared to the present estimate, the company reported $1.01 billion in the same quarter last year.
View all Key Company Metrics for Fortinet here>>>
Shares of Fortinet have experienced a change of -3.2% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), FTNT is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Fortinet's combined SASE Firewall business grew 34% to more than $2 billion in second-quarter 2026.Unified SASE billings rose 35%, while FortiSASE billings more than doubled, fueling growth momentum.Fortinet raised its 2026 revenue outlook to $8.02-$8.18 billion, with non-GAAP EPS view of $3.41-$3.47.
Fortinet (FTNT - Free Report) is gaining traction with its push to converge firewall and secure access service edge (SASE) technologies, positioning the stock for upside. At its SASE Summit 2026, highlighted on Oct. 8, the company outlined how its Unified SASE platform is evolving to secure AI applications and autonomous agents alongside human users.
Fortinet is addressing sovereignty demands through FortiSASE Outpost, which extends inspection and enforcement to on-premises and colocation sites under centralized cloud management, and FortiSASE Sovereign, a private SASE model that customers or service providers can run on their infrastructure.
This builds on the FortiGate 1200G series launched with FortiSASE Outpost in July, which combines ASIC-powered local enforcement with cloud-delivered security. The strategy is showing up in results. In second-quarter 2026, the combined SASE Firewall business, spanning Secure Networking and Unified SASE, grew 34% to more than $2 billion. Unified SASE billings rose 35%, while FortiSASE billings more than doubled. Billings jumped 33% year over year to $2.37 billion, and revenues climbed 26% to $2.05 billion, exceeding the high end of guidance.
Fundamentals reinforce the outlook. Product revenues surged 52% to $773 million, with management expecting attached services to boost service revenue growth in the second half. Meanwhile, the non-GAAP operating margin hit a second-quarter record of 38%.
Backed by this momentum, Fortinet raised its 2026 outlook and now expects revenues of $8.02-$8.18 billion, implying 19% growth, billings of $9.35-$9.55 billion and service revenues of $5.18-$5.22 billion. Non-GAAP operating margin is projected at 35-37%, with non-GAAP EPS of $3.41-$3.47. For the third quarter, it expects revenues of $2.01-$2.10 billion, billings of $2.25-$2.35 billion and non-GAAP EPS of 83-87 cents.
With SASE emerging as a growth engine and guidance pointing to sustained billings strength, Fortinet appears well placed to extend its momentum, paving the way for the stock to reach new highs.
How Fortinet Stacks Up Against PANW and ZS in SASEFortinet faces competition in SASE from Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) . Palo Alto Networks’ Next-Generation Security ARR, which includes SASE, grew 63% to $9.10 billion in fiscal fourth-quarter 2026, while SASE competitive displacements totaled about $450 million for the fiscal year.
Palo Alto Networks expects fiscal 2027 NGS ARR of $11.08-$11.18 billion. Zscaler, a cloud-native zero-trust provider, grew ARR 25% to $3.77 billion in the same quarter and ended with more than 950 Zero Trust Everywhere enterprises. Zscaler projects fiscal 2027 ARR of $4.40-$4.43 billion. Unlike Zscaler’s cloud-delivered approach, Fortinet offers on-premises, hybrid and sovereign SASE deployments.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 116% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 81.8% and 15.8%, respectively.
FTNT’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 45.52, higher than the sector's average of 19.44. The company carries a Value Score of F.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.45 per share for 2026, which implies year-over-year growth of 25%.
Fortinet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CWA Asset Management ve třetím čtvrtletí zvýšila svůj podíl ve společnosti Fortinet o 126,9 % nákupem 57 379 akcií, čímž její držba vzrostla na 102 596 akcií v hodnotě 18,34 milionu USD.
CWA Asset Management Group LLC raised its stake in Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 126.9% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 102,596 shares of the software maker’s stock after buying an additional 57,379 shares during the period. CWA Asset Management Group LLC’s holdings in Fortinet were worth $18,340,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other large investors have also recently modified their holdings of the company. Investment Research Partners LLC lifted its holdings in shares of Fortinet by 11.9% in the 3rd quarter. Investment Research Partners LLC now owns 2,475 shares of the software maker’s stock worth $442,000 after buying an additional 264 shares during the period. Maia Wealth LLC boosted its holdings in shares of Fortinet by 3.7% in the 3rd quarter. Maia Wealth LLC now owns 37,922 shares of the software maker’s stock valued at $6,779,000 after buying an additional 1,345 shares in the last quarter. Fairvoy Private Wealth LLC bought a new stake in shares of Fortinet in the 3rd quarter valued at about $1,190,000. Prairie Advisory LLC grew its position in shares of Fortinet by 100.0% in the 3rd quarter. Prairie Advisory LLC now owns 11,012 shares of the software maker’s stock worth $1,969,000 after buying an additional 5,506 shares during the last quarter. Finally, OceanIQ Capital LLC grew its position in shares of Fortinet by 16.4% in the 3rd quarter. OceanIQ Capital LLC now owns 11,901 shares of the software maker’s stock worth $2,270,000 after buying an additional 1,677 shares during the last quarter. Hedge funds and other institutional investors own 83.71% of the company’s stock.
Insider Activity In related news, VP Michael Xie sold 3,121 shares of Fortinet stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.63, for a total transaction of $507,568.23. Following the transaction, the vice president owned 9,918,360 shares in the company, valued at approximately $1,613,022,886.80. This trade represents a 0.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ken Xie sold 161,482 shares of the business’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total value of $26,266,662.12. Following the transaction, the chief executive officer directly owned 52,972,372 shares in the company, valued at $8,616,486,029.52. This trade represents a 0.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 221,303 shares of company stock worth $36,164,034 over the last ninety days. Corporate insiders own 17.60% of the company’s stock.
Analyst Upgrades and Downgrades A number of brokerages have recently issued reports on FTNT. BMO Capital Markets upped their price target on Fortinet from $170.00 to $185.00 and gave the stock a “market perform” rating in a research report on Thursday, July 30th. JPMorgan Chase & Co. raised their price target on shares of Fortinet from $100.00 to $118.00 and gave the stock an “underweight” rating in a research report on Thursday, July 30th. Roth Capital boosted their price objective on Fortinet from $90.00 to $110.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Bank of America reiterated a “buy” rating on shares of Fortinet in a research note on Monday, July 27th. Finally, Evercore set a $165.00 price target on Fortinet in a research report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twenty-one have issued a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, Fortinet currently has a consensus rating of “Hold” and a consensus price target of $160.92. Get Our Latest Stock Analysis on Fortinet
Fortinet Stock Up 1.4% NASDAQ FTNT opened at $171.50 on Tuesday. The business has a fifty day moving average price of $169.47 and a 200 day moving average price of $143.93. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.19 and a current ratio of 1.28. The company has a market cap of $125.83 billion, a P/E ratio of 60.39, a P/E/G ratio of 3.16 and a beta of 1.03. Fortinet, Inc. has a one year low of $73.55 and a one year high of $197.13.
Fortinet (NASDAQ:FTNT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The company had revenue of $2.05 billion for the quarter, compared to analysts’ expectations of $1.89 billion. During the same quarter in the previous year, the company posted $0.64 EPS. The firm’s quarterly revenue was up 25.6% on a year-over-year basis. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. Research analysts anticipate that Fortinet, Inc. will post 3.10 EPS for the current fiscal year.
Fortinet Company Profile (Free Report)
Fortinet, Inc develops cybersecurity products and services designed to protect networks, endpoints, applications, cloud environments and operational technology systems. The company’s portfolio includes next-generation firewalls, secure networking products, endpoint security, web application security, email security, identity and access solutions, and security information and event management tools.
Its product offerings include FortiGate network security appliances and cloud-based firewalls, along with FortiSwitch, FortiAP and FortiExtender solutions for secure connectivity.
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B. Riley Wealth Advisors Inc. purchased a new stake in Fortinet, Inc. (NASDAQ:FTNT – Free Report) during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 3,896 shares of the software maker’s stock, valued at approximately $696,000.
Several other institutional investors have also recently added to or reduced their stakes in FTNT. Burk Holdings LLC purchased a new position in Fortinet in the 2nd quarter valued at $25,000. Dunhill Financial LLC acquired a new position in Fortinet in the 2nd quarter valued at $25,000. Cornerstone Financial Management LLC raised its position in Fortinet by 102.5% during the 2nd quarter. Cornerstone Financial Management LLC now owns 164 shares of the software maker’s stock worth $25,000 after buying an additional 83 shares during the last quarter. Timbuktu Capital Management LLC purchased a new position in Fortinet during the 2nd quarter worth $31,000. Finally, Elevation Wealth Partners LLC lifted its stake in shares of Fortinet by 53.6% in the 2nd quarter. Elevation Wealth Partners LLC now owns 215 shares of the software maker’s stock worth $33,000 after acquiring an additional 75 shares during the period. Institutional investors and hedge funds own 83.71% of the company’s stock.
Insider Transactions at Fortinet In other news, VP Michael Xie sold 3,121 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $162.63, for a total value of $507,568.23. Following the completion of the transaction, the vice president directly owned 9,918,360 shares in the company, valued at approximately $1,613,022,886.80. This represents a 0.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ken Xie sold 161,482 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $162.66, for a total value of $26,266,662.12. Following the transaction, the chief executive officer owned 52,972,372 shares of the company’s stock, valued at approximately $8,616,486,029.52. This trade represents a 0.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 221,303 shares of company stock valued at $36,164,034. Corporate insiders own 17.60% of the company’s stock.
Fortinet Stock Performance Fortinet stock opened at $169.13 on Friday. The firm has a market capitalization of $124.09 billion, a P/E ratio of 59.55, a PEG ratio of 3.40 and a beta of 1.03. The stock has a fifty day moving average price of $169.33 and a 200 day moving average price of $142.85. Fortinet, Inc. has a 52 week low of $73.55 and a 52 week high of $197.13. The company has a current ratio of 1.28, a quick ratio of 1.19 and a debt-to-equity ratio of 0.32. Fortinet (NASDAQ:FTNT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.15. The firm had revenue of $2.05 billion for the quarter, compared to the consensus estimate of $1.89 billion. Fortinet had a return on equity of 191.54% and a net margin of 28.17%. The firm’s revenue for the quarter was up 25.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.64 earnings per share. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. Equities research analysts anticipate that Fortinet, Inc. will post 3.10 earnings per share for the current year.
Wall Street Analyst Weigh In Several analysts have recently weighed in on the stock. Piper Sandler reaffirmed a “neutral” rating and issued a $175.00 target price (up from $110.00) on shares of Fortinet in a report on Thursday, July 30th. HSBC raised their price objective on shares of Fortinet from $102.00 to $107.00 in a research report on Friday, July 31st. Mizuho set a $160.00 price objective on shares of Fortinet and gave the stock an “underperform” rating in a report on Thursday. Bank of America reissued a “buy” rating on shares of Fortinet in a report on Monday, July 27th. Finally, Robert W. Baird set a $165.00 price objective on shares of Fortinet and gave the stock a “neutral” rating in a research note on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-one have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $159.09.
Check Out Our Latest Stock Report on Fortinet
Key Fortinet News Here are the key news stories impacting Fortinet this week:
Positive Sentiment: Fortinet expanded its partnership with Atos to provide a unified cybersecurity framework for hybrid- and multi-cloud environments. The agreement could strengthen Fortinet’s enterprise reach and support demand for its security products and services. Fortinet Expands Global Cybersecurity Framework For Hybrid And Multi Cloud Security Positive Sentiment: Growth-oriented analysis remains supportive, citing Fortinet’s above-average financial growth and its potential to outperform the broader market. Its latest reported quarter also showed strong earnings and revenue growth, providing a fundamental counterpoint to the current selling pressure. 3 Reasons Why Growth Investors Shouldn’t Overlook Fortinet Neutral Sentiment: Wells Fargo raised its Fortinet price target from $135 to $160 but retained an “underweight” rating. The higher target is constructive, although it still implies limited upside relative to the stock’s recent trading level. Wells Fargo Lifts Target for Fortinet Stock Negative Sentiment: Morgan Stanley downgraded FTNT to “underweight” from “equal weight,” warning that a smaller-than-expected firewall refresh opportunity could reduce future revenue estimates. This concern overshadowed the company’s continued customer expansion and has become the clearest company-specific catalyst behind the decline. Fortinet Falls as Analyst Downgrade Revives Firewall Refresh Concerns Negative Sentiment: Fortinet’s premium valuation makes the stock vulnerable when growth expectations weaken. Broader weakness in technology and AI-related stocks, along with reports of net insider selling, added to investor caution ahead of the company’s October 28 earnings report. About Fortinet (Free Report)
Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company’s portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.
Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.
Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.
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Společnost Fortinet má 28. října 2026 zveřejnit zisk ve výši 0,86 USD na akcii a tržby ve výši 2,06 mld. USD, což představuje meziroční nárůst o 16,22 %, respektive o 19,58 %.
In the latest trading session, Fortinet (FTNT - Free Report) closed at $181.91, marking a -1.16% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.
The network security company's stock has climbed by 7.15% in the past month, exceeding the Computer and Technology sector's gain of 1.62% and the S&P 500's gain of 1.41%.
The upcoming earnings release of Fortinet will be of great interest to investors. The company's earnings report is expected on October 28, 2026. On that day, Fortinet is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 16.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 19.58% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $8.12 billion, which would represent changes of +25% and +19.4%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.77% higher. Fortinet is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Fortinet is holding a Forward P/E ratio of 53.4. Its industry sports an average Forward P/E of 53.96, so one might conclude that Fortinet is trading at a discount comparatively.
Investors should also note that FTNT has a PEG ratio of 3.09 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Security industry was having an average PEG ratio of 3.11.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Akcie společnosti Fortinet během středečního obchodování klesly až o 3,4 % po zprávě, že OpenAI jedná o akvizici společnosti Trail of Bits, která se zabývá kybernetickou bezpečností.
Shares of Fortinet (FTNT -3.25%) were trading sharply lower on Wednesday, falling as much as 3.4% in early trading and were still down 2.9% as of 12:27 p.m. ET.
The catalyst that sent the cybersecurity stock lower was a report that an artificial intelligence (AI) start-up is looking to make a splash in the industry.
Image source: The Motley Fool.
A new threat?Reports emerged late yesterday that AI start-up OpenAI was in preliminary talks to acquire security research and cybersecurity company Trail of Bits, according to a story first reported by The Information. The privately held cybersecurity company made a name for itself identifying and securing vulnerabilities in open-source software.
The report suggested this might be an opening volley by OpenAI in a bid to become a cybersecurity contender.
This isn't the first time OpenAI and Trail of Bits have been linked. Several months ago, the pair launched the Patch the Planet initiative, aimed at identifying and securing exploitable vulnerabilities in open source software. During the first week alone, the initiative exposed hundreds of vulnerabilities and security issues and created fixes to secure them.
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Shades of the SaaSpocalypseIf this all seems oddly familiar, investors need only recall the collapse of many software-as-a-service (SaaS) stocks to kick off 2026. The debut of AI start-up Anthropic's Claude model raised fears that AI would ultimately replace many existing software offerings. In the ensuing months, SaaS stocks have recovered as investors have come to realize that the truth is much more nuanced and that many of these offerings aren't easily replaced.
Fortinet stock has gained 120% so far this year, with a corresponding increase in its valuation. At 54 times forward earnings and 49 times next year's expected earnings, any bit of bad news could drive the stock lower.
That said, since its IPO in late 2009, Fortinet has established itself as a force in the cybersecurity space, with its stock gaining more than 11,000%. This illustrates an important truth: Sometimes, you get what you pay for.
Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fortinet. The Motley Fool has a disclosure policy.
Perpetual Ltd lifted its holdings in Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 2,214.9% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 167,738 shares of the software maker’s stock after purchasing an additional 160,492 shares during the period. Perpetual Ltd’s holdings in Fortinet were worth $29,985,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of Fortinet during the second quarter valued at $9,561,650,000. Bank of New York Mellon Corp acquired a new position in shares of Fortinet in the 2nd quarter valued at $1,432,842,000. Legal & General Group Plc purchased a new position in Fortinet in the 2nd quarter worth about $979,062,000. Arrowstreet Capital Limited Partnership increased its stake in Fortinet by 87.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 9,651,024 shares of the software maker’s stock worth $788,682,000 after purchasing an additional 4,500,194 shares in the last quarter. Finally, Bank of America Corp DE acquired a new stake in Fortinet during the 2nd quarter worth about $656,852,000. 83.71% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In FTNT has been the topic of several recent analyst reports. Daiwa Securities Group boosted their price objective on Fortinet from $115.00 to $165.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Piper Sandler reiterated a “neutral” rating and issued a $175.00 target price (up from $110.00) on shares of Fortinet in a report on Thursday, July 30th. HSBC lifted their target price on shares of Fortinet from $102.00 to $107.00 in a research report on Friday, July 31st. Robert W. Baird set a $165.00 target price on shares of Fortinet and gave the stock a “neutral” rating in a research report on Thursday, July 30th. Finally, Weiss Ratings upgraded shares of Fortinet from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-one have assigned a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, Fortinet currently has a consensus rating of “Hold” and an average target price of $156.51.
View Our Latest Research Report on Fortinet More Fortinet News Here are the key news stories impacting Fortinet this week:
Positive Sentiment: Barclays raised its price target from $190 to $210, signaling additional potential upside and reflecting continued confidence in Fortinet’s growth and profitability. Barclays raises target for Fortinet stock from USD 190 to USD 210 Positive Sentiment: Fortinet’s record margins, raised 2026 guidance and artificial-intelligence security initiatives support the company’s profitability narrative. Its most recent quarterly results also exceeded analyst expectations for earnings and revenue, with revenue growth of 25.6% year over year. Does Fortinet’s Strong Margin Profile Make the Stock Worth Buying Now? Positive Sentiment: Royal Bank of Canada increased its Fortinet price target from $185 to $205. Although RBC maintained a “sector perform” rating, the higher target indicates improved expectations for the shares. Fortinet Stock Price Target Raised at Royal Bank Of Canada Neutral Sentiment: Fortinet reached a fresh 52-week high, highlighting strong momentum, but analysts note that investors must assess whether its fundamentals justify further gains after the stock’s substantial 2026 advance. Fortinet Hits Fresh High: Is There Still Room to Run? Neutral Sentiment: Microsoft CEO Satya Nadella’s call for stronger AI safeguards produced little immediate reaction across cybersecurity stocks, limiting any near-term sector catalyst for FTNT. Microsoft CEO’s AI Warning Draws Little Reaction From Cybersecurity Stocks Negative Sentiment: Valuation and cost risks are becoming more important. FTNT trades near its high with a P/E ratio around 68, while rising chip costs and an unfavorable product mix could pressure margins. Investors with large gains across cybersecurity stocks may also take profits after the sector’s sharp rally. Cybersecurity stocks rally and profit-taking risks Insider Activity at Fortinet In other Fortinet news, COO John Whittle sold 2,835 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $168.74, for a total value of $478,377.90. Following the transaction, the chief operating officer owned 96,987 shares in the company, valued at $16,365,586.38. The trade was a 2.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ken Xie sold 161,482 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the transaction, the chief executive officer owned 52,972,372 shares in the company, valued at $8,616,486,029.52. This trade represents a 0.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 221,303 shares of company stock valued at $36,164,034. Insiders own 17.60% of the company’s stock.
Fortinet Stock Down 0.9% FTNT stock opened at $192.94 on Tuesday. The company has a 50 day moving average of $167.86 and a two-hundred day moving average of $140.42. The company has a market cap of $141.56 billion, a price-to-earnings ratio of 67.94, a PEG ratio of 3.64 and a beta of 1.03. Fortinet, Inc. has a 12-month low of $73.55 and a 12-month high of $196.87. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.32.
Fortinet (NASDAQ:FTNT – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, beating the consensus estimate of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The business had revenue of $2.05 billion for the quarter, compared to analysts’ expectations of $1.89 billion. During the same period in the previous year, the company posted $0.64 EPS. Fortinet’s revenue was up 25.6% on a year-over-year basis. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. On average, equities analysts anticipate that Fortinet, Inc. will post 3.10 earnings per share for the current fiscal year.
About Fortinet (Free Report)
Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company’s portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.
Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.
Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.
See Also Five stocks we like better than Fortinet Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment
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Terra Nova Asset Management LLC increased its stake in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 24.4% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 14,599 shares of the software maker’s stock after purchasing an additional 2,865 shares during the quarter. Fortinet makes up approximately 1.8% of Terra Nova Asset Management LLC’s portfolio, making the stock its 19th largest position. Terra Nova Asset Management LLC’s holdings in Fortinet were worth $2,610,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Fermata Advisors LLC acquired a new position in Fortinet in the 3rd quarter valued at approximately $256,000. NorthCrest Asset Manangement LLC lifted its position in Fortinet by 5.3% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 51,747 shares of the software maker’s stock worth $9,785,000 after buying an additional 2,603 shares in the last quarter. Perpetual Ltd lifted its position in Fortinet by 2,214.9% in the 3rd quarter. Perpetual Ltd now owns 167,738 shares of the software maker’s stock worth $29,985,000 after buying an additional 160,492 shares in the last quarter. JGP Wealth Management LLC lifted its position in Fortinet by 1.7% in the 3rd quarter. JGP Wealth Management LLC now owns 15,206 shares of the software maker’s stock worth $2,718,000 after buying an additional 256 shares in the last quarter. Finally, Jacobs & Co. CA acquired a new stake in shares of Fortinet during the 3rd quarter valued at $223,000. 83.71% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets Several equities analysts have recently commented on the stock. William Blair restated a “market perform” rating on shares of Fortinet in a report on Tuesday, July 21st. Zacks Research upgraded Fortinet from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 14th. Jefferies Financial Group lifted their price objective on Fortinet from $165.00 to $190.00 and gave the company a “hold” rating in a research report on Thursday, July 30th. Morgan Stanley reissued a “positive” rating and set a $136.00 price objective (up from $133.00) on shares of Fortinet in a research report on Thursday, July 30th. Finally, Roth Capital boosted their target price on Fortinet from $90.00 to $110.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $156.51.
Read Our Latest Stock Report on Fortinet Fortinet News Summary Here are the key news stories impacting Fortinet this week:
Positive Sentiment: Barclays raised its price target from $190 to $210, signaling additional potential upside and reflecting continued confidence in Fortinet’s growth and profitability. Barclays raises target for Fortinet stock from USD 190 to USD 210 Positive Sentiment: Fortinet’s record margins, raised 2026 guidance and artificial-intelligence security initiatives support the company’s profitability narrative. Its most recent quarterly results also exceeded analyst expectations for earnings and revenue, with revenue growth of 25.6% year over year. Does Fortinet’s Strong Margin Profile Make the Stock Worth Buying Now? Positive Sentiment: Royal Bank of Canada increased its Fortinet price target from $185 to $205. Although RBC maintained a “sector perform” rating, the higher target indicates improved expectations for the shares. Fortinet Stock Price Target Raised at Royal Bank Of Canada Neutral Sentiment: Fortinet reached a fresh 52-week high, highlighting strong momentum, but analysts note that investors must assess whether its fundamentals justify further gains after the stock’s substantial 2026 advance. Fortinet Hits Fresh High: Is There Still Room to Run? Neutral Sentiment: Microsoft CEO Satya Nadella’s call for stronger AI safeguards produced little immediate reaction across cybersecurity stocks, limiting any near-term sector catalyst for FTNT. Microsoft CEO’s AI Warning Draws Little Reaction From Cybersecurity Stocks Negative Sentiment: Valuation and cost risks are becoming more important. FTNT trades near its high with a P/E ratio around 68, while rising chip costs and an unfavorable product mix could pressure margins. Investors with large gains across cybersecurity stocks may also take profits after the sector’s sharp rally. Cybersecurity stocks rally and profit-taking risks Insider Activity at Fortinet In related news, CEO Ken Xie sold 161,482 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the sale, the chief executive officer directly owned 52,972,372 shares in the company, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO John Whittle sold 2,835 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $168.74, for a total transaction of $478,377.90. Following the completion of the sale, the chief operating officer owned 96,987 shares of the company’s stock, valued at $16,365,586.38. This represents a 2.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 221,303 shares of company stock valued at $36,164,034. Insiders own 17.60% of the company’s stock.
Fortinet Price Performance NASDAQ FTNT opened at $192.94 on Tuesday. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $141.56 billion, a PE ratio of 67.94, a price-to-earnings-growth ratio of 3.64 and a beta of 1.03. Fortinet, Inc. has a 12-month low of $73.55 and a 12-month high of $196.87. The company has a 50 day moving average price of $167.86 and a two-hundred day moving average price of $140.42.
Fortinet (NASDAQ:FTNT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, topping the consensus estimate of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The company had revenue of $2.05 billion for the quarter, compared to analyst estimates of $1.89 billion. During the same quarter in the prior year, the business posted $0.64 EPS. Fortinet’s quarterly revenue was up 25.6% on a year-over-year basis. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. As a group, equities analysts predict that Fortinet, Inc. will post 3.10 earnings per share for the current fiscal year.
Fortinet Company Profile (Free Report)
Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company’s portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.
Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.
Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.
See Also Five stocks we like better than Fortinet Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment
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Key Takeaways Fortinet's non-GAAP operating margin hit a record 38% in Q2 2026, while free cash flow reached $966M.Fortinet raised 2026 operating margin guidance to 35-37% and non-GAAP EPS guidance to $3.41-$3.47.FTNT's 33.7% GAAP operating margin outpaced CRWD's, despite product-mix pressure and rising memory chip costs.
Fortinet (FTNT - Free Report) is sharpening its AI security push, and the effort increasingly reinforces its margin narrative. In August, the company acquired Virtue AI, which adds runtime protection and automated validation for AI models, applications and autonomous agents to complement FortiAIGate. Fortinet said the amount paid was immaterial. In September, Fortinet was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall. These moves build on the FortiGate 1200G with FortiSASE Outpost, which targets AI infrastructure requirements, and an Intel collaboration on its SP6 security processor.
Second-quarter 2026 results showed this momentum turning into profitability. Non-GAAP operating margin expanded to a record 38% from 33.1% a year ago, and GAAP operating margin rose to 33.7% from 28.1%. Product gross margin improved 2.4 percentage points to 69.8%, helped by recent pricing actions. Free cash flow reached $966 million, representing a 47.2% margin.
Guidance underlines the margin strength. For 2026, Fortinet now expects a non-GAAP operating margin of 35-37%, up from the earlier guidance of 33-36%, and a non-GAAP gross margin of 79-81%. Revenues are projected to be in the range of $8.02-$8.18 billion, implying 19% growth. Service revenue is expected at $5.18-$5.22 billion and billings at $9.35-$9.55 billion. Non-GAAP EPS guidance was raised to $3.41-$3.47 from $3.10-$3.16. For the third quarter, Fortinet expects revenues of $2.01-$2.10 billion, non-GAAP operating margin of 35-37% and non-GAAP EPS of 83-87 cents.
However, challenges persist. Total GAAP gross margin slipped to 80.2% from 80.7% as the revenue mix shifted 6.5 percentage points toward lower-margin product revenues, while memory chip costs rose. Service gross margin dipped slightly on data center expansion costs. Third-quarter operating margin guidance also implies a step down from the second quarter’s record level.
Overall, raised guidance, robust cash generation and AI-driven product momentum keep Fortinet’s margin profile attractive. Product-mix pressure and rising component costs, however, warrant close monitoring in coming quarters.
How FTNT’s Margins Stack Up Against PANW and CRWDFortinet’s margin profile compares favorably with Palo Alto Networks (PANW - Free Report) and CrowdStrike (CRWD - Free Report) , though both rivals continue to expand their top lines rapidly. Palo Alto Networks’ fiscal fourth-quarter 2026 revenues rose 34% to $3.41 billion, with non-GAAP operating income of $1.01 billion, implying a margin near 30%. For fiscal 2027, Palo Alto Networks expects a 29.5% non-GAAP operating margin and a 38% adjusted free cash flow margin. CrowdStrike’s second-quarter fiscal 2027 revenues grew 26% to $1.47 billion, while non-GAAP operating margin improved to 25% from 22%. However, CrowdStrike still reported a negative 2% GAAP operating margin, well below Fortinet’s 33.7%.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 144.7% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 117.6% and 23.5%, respectively.
FTNT’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 51.81, higher than the sector's average of 20.93. The company carries a Value Score of F.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.45 per share for 2026, which implies year-over-year growth of 25%.
Fortinet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A strong stock as of late has been Fortinet (FTNT - Free Report) . Shares have been marching higher, with the stock up 24.8% over the past month. The stock hit a new 52-week high of $194.95 in the previous session. Fortinet has gained 145.3% since the start of the year compared to the 23.7% move for the Zacks Computer and Technology sector and the 117.6% return for the Zacks Security industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2026, Fortinet reported EPS of $0.9 versus consensus estimate of $0.75.
For the current fiscal year, Fortinet is expected to post earnings of $3.45 per share on $8.12 in revenues. This represents a 25% change in EPS on a 19.37% change in revenues. For the next fiscal year, the company is expected to earn $3.85 per share on $9.08 in revenues. This represents a year-over-year change of 11.6% and 11.93%, respectively.
Valuation MetricsWhile Fortinet has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Fortinet has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 56.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 59.1X. On a trailing cash flow basis, the stock currently trades at 62.9X versus its peer group's average of 75.9X. Additionally, the stock has a PEG ratio of 3.27. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Fortinet currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Fortinet meets the list of requirements. Thus, it seems as though Fortinet shares could have a bit more room to run in the near term.
Fortinet ve 2. čtvrtletí zvýšil tržby meziročně o 26 % a překonal horní hranici výhledu. Celoroční výhled tržeb zvýšil o 175 milionů USD v polovině rozpětí.
Fortinet (FTNT +0.09%) is an cybersecurity stock to buy and hold as artificial intelligence (AI) tailwinds propel its business. Its 140% year-to-date return highlights growing demand for the stock as it continues to prove itself each quarter.
AI has provided a tailwind for many industries, but its impact on cybersecurity companies is only starting to be noticed. As agentic AI creates more data assets that must be protected while simultaneously producing more points of vulnerability, powerful new cybersecurity tools are needed. Here's why Fortinet is poised to shine in this shifting market.
Image source: Getty Images.
Fortinet combines growth and value Fortinet isn't the only cybersecurity stock benefiting from the AI trend, but it combines growth and value better than most of the competition. For instance, Fortinet's forward P/E ratio of 45 is much lower than CrowdStrike's (CRWD +0.43%) 208 or Palo Alto Networks' (PANW -0.38%) 94.
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Fortinet and CrowdStrike had nearly identical year-over-year revenue growth rates in their most recent quarters, while Palo Alto Networks was a little ahead of them.
In the second quarter, Fortinet's revenue was up by 26% year over year and beat the high end of guidance. It also raised its revenue guidance for the year by $175 million at the midpoint. But that's still a bit conservative, as it points to just 19% growth.
Where Fortinet operates in the AI cybersecurity trade Fortinet's software has automations that help it detect red flags and block unusual activity within seconds. The company uses AI to fight AI, and can prevent its clients' employees from using risky AI tools. It also has a chatbot to assist cybersecurity professionals and help them pinpoint vulnerabilities.
The company focuses more on cybersecurity for data centers, networks, and hardware. Its technology is directly embedded in key parts of AI infrastructure. That's a contrast to CrowdStrike, which operates more like software that protects an employer's laptops, smartphones, and other devices through the cloud.
Sometimes, Fortinet applies a physical chip or component that goes on AI infrastructure. At other times, Fortinet integrates its software deeply into hardware. For instance, Fortinet provides FortiGate-VM software that runs directly on Nvidia's BlueField-3 data processing units. The optimized virtual cloud firewall protects AI servers from hackers, even if the main server operating system gets compromised.
This approach lets data center providers maintain intense AI workloads without having cybersecurity drag on overall performance. It's foundational technology that makes it easier for AI to scale while remaining secure. As more data centers are constructed, more companies will have to turn to Fortinet's cybersecurity products and services.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Fortinet, and Nvidia. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.
Fortinet (FTNT) v poslední obchodní den klesl o 2,92 % na 173,46 USD, zatímco S&P 500 vzrostl o 0,51 %. Investoři čekají na hospodářské výsledky, kde se počítá s EPS 0,86 USD a tržbami 2,06 mld. USD.
Fortinet (FTNT - Free Report) closed the most recent trading day at $173.46, moving -2.92% from the previous trading session. This change lagged the S&P 500's 0.51% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.48%.
Coming into today, shares of the network security company had gained 3.41% in the past month. In that same time, the Computer and Technology sector gained 6.54%, while the S&P 500 gained 0.74%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.86, marking a 16.22% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.06 billion, indicating a 19.44% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.42 per share and a revenue of $8.12 billion, demonstrating changes of +23.91% and +19.37%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Fortinet. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.8% higher. Currently, Fortinet is carrying a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Fortinet currently has a Forward P/E ratio of 52.17. This denotes a discount relative to the industry average Forward P/E of 52.62.
We can additionally observe that FTNT currently boasts a PEG ratio of 3.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.16.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Fortinet dosáhl nového 52týdenního maxima, když tržby z platformy pro kybernetickou bezpečnost dál rostou. Ve 2. čtvrtletí vzrostly billings o 33 % na 2,37 miliardy USD a tržby o 26 % na 2,05 miliardy USD.
Key Takeaways Fortinet shares hit a 52-week high as demand grows for its unified security platform.Fortinet's Q2 billings rose 33%, while revenues grew 26% and product revenues surged 52%.Management raised 2026 guidance, citing confidence in sustained AI-driven security demand. Fortinet (FTNT - Free Report) shares climbed to a fresh 52-week high of $175.23 on Sept. 21, 2026, before closing at $172.78, up roughly 3% on the session, extending a rally built on accelerating demand for its unified security platform. The move reflects growing enterprise appetite for Fortinet's converged networking-and-security architecture at a time when organizations are racing to secure AI workloads alongside traditional infrastructure.
Recent platform expansions have reinforced that positioning. The company rolled out FortiSOC, a cloud-delivered security operations center that embeds agentic AI across SIEM, SOAR, threat intelligence and identity-detection functions, and extended FortiEndpoint with AI visibility, governance and data-loss-prevention capabilities delivered through a single agent and console. It also deepened its FortiAIGate integration with NVIDIA's accelerated computing stack to secure large language models, autonomous agents and Model Context Protocol deployments, positioning the company for enterprise AI-adoption spending rather than only conventional firewall refresh cycles.
That platform momentum is already visible in the numbers. In the second quarter of 2026, billings rose 33% year over year to $2.37 billion, revenues grew 26% to $2.05 billion, and product revenues surged 52% to $773 million, supported by strong FortiGate unit growth and higher average selling prices tied to AI-workload and operational-technology demand. Non-GAAP operating margin hit a second-quarter record of 38%, while free cash flow more than tripled to $966 million, a 47% cash-conversion margin on quarterly revenues. Encouraged by that breadth, management raised full-year 2026 guidance to $8.02-$8.18 billion (about 19% growth) for revenues, $9.35-$9.55 billion for billings, and $3.41-$3.47 for non-GAAP EPS, with operating margin projected at 35-37%.
Third-quarter guidance calls for revenues of $2.01-$2.10 billion. With infrastructure investment guided at $350-$550 million for the year, Fortinet signals confidence that current AI-driven security demand is structural rather than a single-quarter spike.
How Rivals ComparePalo Alto Networks (PANW - Free Report) and CrowdStrike (CRWD - Free Report) offer useful benchmarks for Fortinet's platform-driven growth. Palo Alto Networks has leaned on its AI-centric platform optimization strategy, with remaining performance obligations and next-generation security ARR expanding at double-digit rates as customers consolidate tools. CrowdStrike, meanwhile, has posted strong annual recurring revenue growth powered by its Falcon platform and expanding AI-driven modules, though both Palo Alto Networks and CrowdStrike trade at higher revenue multiples than Fortinet given their software-heavy, subscription-first models. Fortinet's hardware-and-software mix contrasts with Palo Alto Networks' and CrowdStrike's largely software-based approaches, giving investors different ways to gain cybersecurity-sector exposure.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 120.7% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 94.8% and 22.8%, respectively.
FTNT’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 47.23, higher than the sector's average of 21.36. The company carries a Value Score of F.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.42 per share for 2026, which implies year-over-year growth of 23.91%.
Fortinet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet uvedl, že AI a noví „neocloud“ poskytovatelé zvyšují poptávku po síťové bezpečnosti. Firma zároveň vidí rostoucí potřebu chránit interní AI provoz a strojově generovaný provoz.
Cybersecurity Stocks Are Holding Up as the AI Trade Starts to CrackFortinet NASDAQ: FTNT executives said the cybersecurity company sees artificial intelligence as a growing source of demand for network security, particularly as enterprises and emerging “neocloud” providers build AI infrastructure and seek to protect machine-generated traffic.
Speaking at the Goldman Sachs Communacopia + Technology Conference, Chief Executive Officer and Co-Founder Ken Xie said Fortinet has developed its own AI models and infrastructure, including global data centers with GPUs, and has launched more than 20 AI-enabled products, primarily in security operations. He said the company’s network-security footprint provides data that helps it analyze global intrusion and attack activity.
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Time to Sell? 3 Winners With Fading Technical MomentumXie said the company sees a broader opportunity in securing AI itself, including enterprise AI deployments, internal network segmentation, and infrastructure operated by AI service providers. “You need to use AI to find or protect the other AI,” Xie said.
Neocloud Opportunity and Sovereign Deployments Fortinet executives described neocloud providers as a potentially important customer group because they are building AI infrastructure quickly and may require security products as they deploy data centers. Xie said these providers can make purchasing decisions in months rather than years, contrasting them with traditional telecommunications carriers.
As AI Data Breaches Become More Common, This Cybersecurity ETF Is SurgingHe cited an example previously discussed in earnings materials in which a neocloud customer evaluated Fortinet’s offerings and made a purchase during the same quarter, followed by an opportunity that was five to 10 times larger in the subsequent quarter. However, Xie said the market remains at an early stage and that neocloud providers are currently focused more on protecting infrastructure than on securing AI models and applications.
Chief Financial Officer Christiane Ohlgart said Fortinet aims to establish reference architectures early in the deployment process so it can grow alongside neocloud operators as they build data centers. She said midsize neocloud companies could be particularly likely customers because they may not have proprietary security components.
Ohlgart also pointed to regulatory requirements around data sovereignty, particularly in Europe, where local companies are building AI infrastructure. She said Fortinet’s technology stack can support sovereign SASE deployments and security for AI clusters operated in environments where local control is mandated.
AI Traffic Drives Internal Security Needs Xie said recent AI-driven traffic is increasingly occurring in east-west network environments, including within data centers and enterprises. He said machine-to-machine traffic has surpassed human-to-human and human-to-machine traffic across the internet, increasing the need for visibility and control over internal traffic and AI-agent activity.
The company sees internal segmentation as a growing use case as customers seek to understand what AI agents are doing within their networks. Xie said Fortinet’s combination of SD-WAN, SASE and firewall capabilities in one operating system can be deployed on-premises, in the cloud or through service providers, which he said expands the company’s opportunity in hybrid and sovereign SASE environments.
Ohlgart said customers are purchasing larger FortiGate devices than in the past, resulting in higher average selling prices excluding price increases. She said it is unclear whether customers are buying larger systems in anticipation of greater traffic volumes or to deploy more functionality, including SD-WAN, quantum encryption and AI visibility tools.
Fortinet’s newer FortiOS releases provide added AI visibility, according to Ohlgart, including insight into where traffic is going, which models are receiving traffic, and whether prompts may include personal data.
Supply Chain and Pricing On memory costs, Xie said Fortinet has not seen the same supply constraints affecting high-bandwidth memory used in AI systems because its products primarily use DDR4 and DDR5 memory. He said pricing in those categories has stabilized compared with six months earlier.
Xie said Fortinet monitors channel inventory and has reduced incentives for customers to purchase products far in advance. The company shortened the period customers have to register hardware and activate related services from up to one year to between one and 90 days, he said. Fortinet also seeks to maintain roughly six months of system-level inventory and about one year of inventory for its proprietary application-specific integrated circuits.
He added that Fortinet seeks to maintain relatively stable gross margins by adjusting prices when component costs change, noting that the company has raised prices when costs increased and reduced them when costs declined.
Services Attachments and Growth Outlook Ohlgart said Fortinet is focused on attaching more services to hardware sales and expanding its subscription portfolio. The company’s newer SD-WAN service bundle includes a SASE starter license, allowing customers deploying SD-WAN to test FortiSASE with 10 to 15 users depending on the FortiGate model.
She said the strategy is intended to help customers evaluate Fortinet’s SASE capabilities before potentially replacing cloud-only SASE or security service edge products when those competing contracts come up for renewal. The SD-WAN services bundle targets customers that may previously have purchased only FortiCare, with FortiCare representing about 20% and additional services representing roughly 35% of the hardware price, according to the executives.
While Fortinet recently reported 52% product growth, Ohlgart said the company is not yet providing 2027 targets and will continue to guide one quarter at a time. She said Fortinet sees demand tailwinds across AI, sovereign SASE, traditional SASE, operational technology and quantum-related security, while noting that the pace of customer decisions remains difficult to predict.
About Fortinet (NASDAQ:FTNT)Fortinet, Inc develops cybersecurity products and services designed to protect enterprise, small and midsize business, service provider, and government networks. Its portfolio covers network security, endpoint protection, cloud security, secure access service edge (SASE), security operations, and zero-trust access.
The company's offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiManager and FortiAnalyzer management and analytics tools.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Akcie Palo Alto Networks klesají o 8 % po zveřejnění výsledků, i když tržby vzrostly o 34 % na 3,41 miliardy USD a překonaly odhady. Trh ale zklamalo zpomalení růstu NGS ARR.
Palo Alto Networks crushed revenue estimates and still got punished, while peers with weaker numbers barely flinched. The gap between what bulls expected and what the company delivered reveals a fault line running through the entire cybersecurity rally.
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Cybersecurity stocks are trading lower Wednesday morning as a marquee earnings beat drew heavy selling, and the reaction looks like a repricing of one name’s premium while sector peers move far less. The headline growth number was strong, though the metric bulls watch closest came in modestly light.
Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) stock is down 8% to $332.30 after the company reported fiscal Q4 2026 results Tuesday afternoon. The Amplify Cybersecurity ETF (NYSEARCA:HACK) is down 2% to $109.32, showing much softer selling across the sector basket. The Invesco QQQ Trust (NASDAQ:QQQ) is down 0.1% to $706.66, leaving the large-cap tech tape barely lower on the session as Palo Alto Networks stock falls several times harder than its own sector fund.
Earnings Beat With a GAAP Swing Palo Alto Networks reported revenue of $3.41 billion, up 34% year over year and ahead of the $3.35 billion consensus. Non-GAAP EPS came in at $1.02 versus $0.98 expected, with adjusted profit of $853 million versus $673 million a year earlier. The company also announced the closing of its Console acquisition, an AI-native agentic workflow platform intended to extend Cortex.
On a GAAP basis, Palo Alto posted a net loss of $282 million, or $0.35 per share, against net income of $254 million a year earlier. The swing came from $281 million of acquired intangible amortization and a $524 million fair value change on convertible notes acquired from CyberArk. Operating cash flow at Palo Alto reached $1.357 billion in the quarter, with a full-year adjusted free cash flow margin of 38.4%.
Palo Alto Networks’ next-generation security annual recurring revenue rose 63% year over year to $9.1 billion, with nearly $1 billion of net new next-generation security ARR added in the quarter. Remaining performance obligations at Palo Alto Networks rose 34% to $21.2 billion.
Fiscal 2027 guidance from Palo Alto Networks calls for revenue of $14.1 billion to $14.2 billion, non-GAAP EPS of $4.16 to $4.19 per share against $3.84 in fiscal 2026, and NGS ARR of $11.075 billion to $11.175 billion. Adjusted free cash flow margin is guided to 38%, down from 38.4%.
ARR Deceleration Broke the Bull Case Raymond James reiterated a Market Perform rating on Palo Alto and called the results generally solid, while noting next-generation security ARR came in modestly below what it believed buy-side investors expected. Analyst Adam Tindle said the figure would have needed to reach closer to $9.15 billion to represent an accelerating beat, stating that “the beat decelerated in a very healthy environment.”
Tindle noted the ARR trajectory underpins the bull case that Palo Alto Networks is decoupling from traditional firewall comparisons and behaving like a high-growth next-generation software company. He benchmarked that growth against CrowdStrike, whose total ARR growth is running in the mid-20% range with net new ARR growth above 50%. That comparison explains why the market treated a headline beat at Palo Alto Networks as a disappointment.
CEO Nikesh Arora highlighted the company’s platform expansion in the release, citing “nearly $1 billion of Net New NGS ARR in a single quarter.” The subtext of the reaction is that the buy side had already priced that scale in, leaving Palo Alto Networks with no cushion at the current multiple.
Peer Reaction Stays Muted Meanwhile, CrowdStrike Holdings (NASDAQ:CRWD) stock is down 3% to $208.03, a much softer reaction that leaves the sector picture intact. CrowdStrike stock was up 84% year to date through Tuesday’s close, so today’s drawdown barely dents the run.
Fortinet (NASDAQ:FTNT) stock is down 3% to $157.51, a similar sympathy move consistent with sector rotation. Fortinet stock was up 104% year to date through Tuesday’s close, actually outperforming Palo Alto Networks over that stretch.
Palo Alto stock was up 97% year to date through Tuesday’s close, so a 9% reaction on a decelerating beat lines up with a group that ran hot into the earnings report. The Amplify Cybersecurity ETF’s 2% pullback captures the sector picture cleanly for the day.
What to Watch The unresolved question is whether fiscal 2027 NGS ARR guidance of 22% to 23% growth is enough to sustain the multiple Palo Alto stock carried into the earnings report. Traders can watch for sell-side revisions in the coming sessions that either endorse the guide as conservative or trim expectations further after Tuesday’s call.
The CyberArk integration progress and the newly closed Console acquisition are the operational threads to follow at Palo Alto Networks. Investors should size their positions carefully given the valuation still embedded in the stock after today’s move.
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Fortinet spustil bezplatný středoškolský kurz kyberbezpečnosti a zároveň po silném 2. čtvrtletí zvýšil výhled na rok 2026. Tržby ve 2. čtvrtletí vzrostly meziročně o 26 % na 2,05 miliardy USD. Fortinet zvýšil celoroční výhled na rok 2026 na tržby 8,02–8,18 miliardy USD a zisk na akcii 3,41–3,47 USD.
Key Takeaways FTNT launches a free high-school cybersecurity curriculum to expand workforce development & brand visibility.AI security advances and strong Q2 demand drove revenues up 26% and billings up 33% year over year.Fortinet raised its 2026 outlook to $8.02-$8.18 billion for revenues and $3.41-$3.47 for EPS. Fortinet (FTNT - Free Report) is drawing renewed investor attention after unveiling a free Technical High School Cybersecurity Curriculum, a move that broadens its footprint in workforce development while reinforcing the company's long-term demand pipeline for cybersecurity talent and products alike.
Delivered through the Fortinet Training Institute's Security Awareness and Training Service, the initiative offers two full-year courses, Cybersecurity 1: Foundations and Cybersecurity 2: Fundamentals, spanning roughly 180 days and 145 hours each. The standards-aligned program covers networking, cryptography, endpoint security and risk management, and is already being piloted by Chicago Public Schools.
By equipping the next generation of cyber defenders at no cost to districts, Fortinet strengthens its brand visibility among educators and future IT professionals, a strategy that has historically supported longer-term platform adoption.
The education push follows closely on a string of technology advancements strengthening Fortinet's AI security portfolio. In August, the company acquired Virtue AI to bolster agentic red-teaming, runtime protection and continuous validation for AI models and autonomous agents, complementing its existing FortiAIGate offering. This builds on the earlier launch of FortiSOC, a unified, cloud-delivered security operations platform powered by agentic AI, and FortiOS 8.0, which added AI-driven security, next-generation SASE and quantum-safe capabilities across its Security Fabric.
This announcement lands on the heels of a robust second-quarter 2026 performance that underscores accelerating cybersecurity demand. Revenues climbed 26% year over year to $2.05 billion, while billings surged 33% to $2.37 billion. Product revenues jumped 52% to $773 million, fueled by FortiGate unit growth tied to AI-workload and OT security needs, and the SASE Firewall business grew 34% to surpass $2 billion. Profitability metrics were equally strong, with non-GAAP operating margin hitting a second-quarter record of 38% and free cash flow more than tripling year over year to $966 million. Non-GAAP EPS rose 41% to $0.90, comfortably topping the company's own guidance range.
Buoyed by this momentum, Fortinet raised its full-year 2026 outlook, projecting revenues of $8.02-$8.18 billion and non-GAAP EPS of $3.41-$3.47. With billings acceleration, record margins and a widening talent pipeline through education initiatives, Fortinet appears well-positioned to sustain its growth trajectory into the back half of 2026.
CrowdStrike and Palo Alto Networks Post Similar Demand TrendsFortinet's growth is echoed by peers CrowdStrike (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) , both of which have reported accelerating demand tied to AI-driven security needs. CrowdStrike's most recent quarter showed revenues up 26% year over year to $1.47 billion, prompting a raised full-year forecast near $6 billion, while Palo Alto Networks guided fiscal fourth-quarter revenues of $3.345-$3.355 billion, up roughly 32% year over year, with next-generation security ARR growth of 59-60%. Unlike Fortinet's education-focused initiative, neither CrowdStrike nor Palo Alto Networks has announced a comparable high-school curriculum, though both continue to expand platform consolidation strategies to capture broader enterprise security budgets.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 115.3% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 90% and 16.8%, respectively.
FTNT’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 46.59, higher than the sector's average of 20.65. The company carries a Value Score of F.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.40 per share for 2026, which implies year-over-year growth of 23.19%.
Fortinet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet v roce 2026 vzrostl o více než 100 % díky silné poptávce po kyberbezpečnosti a růstu tržeb z produktů. Odhadovaná vnitřní hodnota 120–150 USD za akcii je pod současnou cenou kolem 160 USD.
SummaryFortinet stock has surged over 100% in 2026, driven by robust AI-driven cybersecurity demand and strong product revenue growth.FTNT’s free cash flow, billings, and deferred revenue are strong, with gross margins near 80% and a clean balance sheet supporting aggressive buybacks.Valuation models (FCFF, FCFE, residual income) converge on an intrinsic value range of $120–150 per share, below the current ~$160 price.I rate FTNT a Hold, as current valuation embeds optimistic growth and return assumptions; a pullback or evidence of sustained high growth would increase my conviction.Editor's note: Seeking Alpha is proud to welcome KRM Insights as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of BUG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
BUG is an ETF that has 8.14% allocation to FTNT. I hold long-term call options in my IRA.
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Fortinet během pátečního obchodování dosáhl nového 52týdenního maxima 173,89 USD a naposledy se obchodoval za 172,78 USD. Růst podpořily lepší než očekávané výsledky a tržby 2,05 miliardy USD, meziročně o 25,6 %.
Fortinet, Inc. (NASDAQ:FTNT – Get Free Report) shares hit a new 52-week high during trading on Friday . The stock traded as high as $173.89 and last traded at $172.78, with a volume of 6901702 shares traded. The stock had previously closed at $157.54.
Key Stories Impacting Fortinet Here are the key news stories impacting Fortinet this week:
Positive Sentiment: Cybersecurity-sector rally lifted sentiment. Fortinet appears to be benefiting from strong quarterly results and upbeat outlooks from major cybersecurity peers, creating a positive read-through for comparable companies. The company’s own recent results showed 25.6% year-over-year revenue growth to $2.05 billion and earnings above analyst expectations. Why Fortinet Stock Is Up Today Positive Sentiment: CMMC Level 2 certification strengthens Fortinet’s federal positioning. Fortinet Federal, a wholly owned subsidiary, received certification after an independent assessment validated 110 NIST SP 800-171 security requirements for protecting Controlled Unclassified Information. The milestone may improve Fortinet’s ability to compete for U.S. government and defense-related contracts. Fortinet Federal Achieves CMMC Level 2 Certification Positive Sentiment: Operational momentum remains strong. Fortinet reported better-than-expected quarterly earnings and revenue, with product revenue growth and higher full-year guidance reinforcing the company’s growth narrative. This provides a fundamental backdrop for the recent share-price strength. Neutral Sentiment: Valuation is becoming a concern. An investment analysis highlighted Fortinet’s strong platform and cash generation but argued that the elevated valuation leaves limited margin of safety. With the shares near their 52-week high, additional gains may require continued execution and upward revisions to expectations. Fortinet Strong Platform and Cash Generation, but Valuation Leaves Limited Margin of Safety Negative Sentiment: Insider selling and mixed analyst views could limit upside. Reported insider activity showed executives selling shares without recorded open-market purchases during the past six months. Several analysts also maintain cautious ratings, and the reported median price target is below the current trading range, signaling potential valuation pressure. Wall Street Analysts Forecast Growth FTNT has been the topic of several analyst reports. Scotiabank reissued a “sector perform” rating and set a $163.00 price target on shares of Fortinet in a research report on Thursday, July 30th. Stifel Nicolaus set a $175.00 price objective on Fortinet and gave the company a “hold” rating in a report on Thursday, July 30th. BTIG Research lifted their target price on Fortinet from $186.00 to $203.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. JPMorgan Chase & Co. upped their target price on Fortinet from $73.00 to $75.00 and gave the stock an “underweight” rating in a report on Thursday, May 7th. Finally, Robert W. Baird set a $165.00 price target on Fortinet in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty have given a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, Fortinet presently has a consensus rating of “Hold” and an average price target of $150.91.
Read Our Latest Stock Analysis on FTNT Fortinet Trading Up 9.7% The business’s 50 day moving average price is $157.25 and its 200-day moving average price is $120.08. The company has a current ratio of 1.28, a quick ratio of 1.19 and a debt-to-equity ratio of 0.32. The company has a market cap of $126.77 billion, a price-to-earnings ratio of 60.84, a PEG ratio of 2.99 and a beta of 1.07.
Fortinet (NASDAQ:FTNT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.75 by $0.15. The business had revenue of $2.05 billion for the quarter, compared to analyst estimates of $1.89 billion. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. Fortinet’s quarterly revenue was up 25.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.64 EPS. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. On average, equities analysts anticipate that Fortinet, Inc. will post 3.05 EPS for the current fiscal year.
Insider Buying and Selling In other Fortinet news, VP Michael Xie sold 3,907 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $146.44, for a total transaction of $572,141.08. Following the transaction, the vice president owned 9,923,610 shares in the company, valued at $1,453,213,448.40. This trade represents a 0.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ken Xie sold 161,482 shares of Fortinet stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total value of $26,266,662.12. Following the sale, the chief executive officer directly owned 52,972,372 shares of the company’s stock, valued at $8,616,486,029.52. This represents a 0.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 329,142 shares of company stock worth $50,731,178. 17.60% of the stock is owned by corporate insiders.
Institutional Trading of Fortinet A number of institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System increased its stake in Fortinet by 15,545.1% during the 2nd quarter. California State Teachers Retirement System now owns 145,097,777 shares of the software maker’s stock worth $22,289,921,000 after acquiring an additional 144,170,346 shares during the period. BlackRock Inc. acquired a new stake in shares of Fortinet during the 2nd quarter worth $9,561,650,000. State Street Corp increased its position in shares of Fortinet by 1.6% in the third quarter. State Street Corp now owns 29,660,558 shares of the software maker’s stock worth $2,493,860,000 after purchasing an additional 477,397 shares during the period. Norges Bank bought a new position in shares of Fortinet in the fourth quarter worth $1,152,917,000. Finally, Bank of New York Mellon Corp raised its stake in Fortinet by 6.6% in the fourth quarter. Bank of New York Mellon Corp now owns 14,504,597 shares of the software maker’s stock valued at $1,151,810,000 after purchasing an additional 893,190 shares in the last quarter. Institutional investors own 83.71% of the company’s stock.
About Fortinet (Get Free Report)
Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.
Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.
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It has been about a month since the last earnings report for Fortinet (FTNT - Free Report) . Shares have added about 12% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Fortinet due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Fortinet, Inc. before we dive into how investors and analysts have reacted as of late.
Fortinet Q2 Earnings & Revenues Beat Estimates, Increase Y/YFortinet reported second-quarter 2026 non-GAAP earnings per share (EPS) of 90 cents, beating the Zacks Consensus Estimate by 20% and rising 40.6% year over year.
Total revenues of $2.05 billion beat the consensus mark by 9.1% and increased 25.6% year over year, driven by strong demand across customer segments, industry verticals, and geographies. Growth was fueled by accelerating investment in securing AI infrastructure, the convergence of firewall, SD-WAN and SASE technologies into the company's newly defined SASE Firewall platform, and continued strength in operational technology (OT) security amid rising regulatory and critical infrastructure requirements.
Total deferred revenues (current plus long-term portions combined) came in at $7.68 billion, while the current portion was $3.84 billion as of June 30, 2026.
Total billings increased 33.4% year over year to $2.37 billion, led by 34% growth in secure networking, more than 55% growth in OT, 35% growth in Unified SASE and 25% growth in AI-driven security operations.
FTNT's Q2 in DetailSegment-wise, Product revenues increased 51.9% year over year to $773 million, representing 37.7% of total revenues. The acceleration was driven by strong FortiGate unit growth and higher average selling prices as customers shifted toward higher-performing models, along with customer investments to secure AI workloads and support AI data center buildouts.
Service revenues of $1.27 billion grew 13.7% year over year, accounting for 62.3% of total revenues, with growth improving from the prior quarter. The first quarter of 2026 marked the trough for service revenue growth, with a positive trajectory expected going forward as accelerating product revenue feeds through to attached services. Service billings accelerated to 26% growth and total deferred revenues grew 17%. FortiSASE adoption within the large enterprise installed base rose to 90%, with FortiSASE billings growing more than 100% year over year, benefiting from expansion sales, competitive replacements and new large enterprise wins.
Margins of FTNTTotal GAAP gross margin was 80.2%, contracting 50 basis points (bps) year over year. Non-GAAP gross margin came in at 80.9%, contracting 70 bps year over year but exceeding the high end of guidance.
GAAP operating margin expanded 560 bps year over year to 33.7% in the second quarter. On a non-GAAP basis, operating margin expanded 490 bps to a second quarter record of 38%, reflecting stronger than expected revenue growth, disciplined cost management and growing efficiencies from internal AI initiatives.
FTNT's Balance Sheet & Cash FlowFortinet exited the second quarter of 2026 with cash and cash equivalents and short-term investments of $4.07 billion, up from $3.29 billion reported at the end of the first quarter of 2026.
Cash flow from operations was $1.04 billion for the second quarter of 2026, up from $451.9 million in the prior year quarter, an increase of 130.9%. Free cash flow of $965.6 million grew 239.9% year over year from $284.1 million in the prior year quarter, reflecting improved linearity, higher billings and strong working capital discipline, representing a free cash flow margin of 47.2%. Adjusted free cash flow reached $995.9 million, up 132.7% year over year, representing a margin of 48.6%.
The company repurchased 1.9 million shares of common stock for $146 million during the second quarter, bringing year-to-date repurchases to 12.5 million shares for $973 million, at an average price of approximately $78 per share. The remaining share repurchase authorization stands at approximately $766 million.
FTNT's Q3 & 2026 GuidanceFortinet expects third-quarter revenues in the range of $2.01-$2.10 billion. Billings are estimated in the range of $2.25-$2.35 billion. The non-GAAP gross margin is expected in the range of 79-81%, while the non-GAAP operating margin is anticipated between 35-37%. Non-GAAP EPS is projected in the range of 83-87 cents.
For 2026, FTNT raised its outlook and now predicts revenues in the range of $8.02-$8.18 billion (up from prior $7.71-$7.87 billion). Service revenues are projected in the range of $5.18 to $5.22 billion. Billings are expected in the range of $9.35-$9.55 billion (up from prior $8.8 to $9.1 billion). The non-GAAP gross margin is expected in the range of 79-81% and the operating margin is projected in the band of 35-37%. Non-GAAP EPS is anticipated to be between $3.41 and $3.47 (up from prior $3.10-$3.16).
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 13.51% due to these changes.
VGM ScoresCurrently, Fortinet has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Fortinet has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerFortinet belongs to the Zacks Security industry. Another stock from the same industry, Varonis Systems (VRNS - Free Report) , has gained 12.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Varonis reported revenues of $180.02 million in the last reported quarter, representing a year-over-year change of +18.3%. EPS of $0.04 for the same period compares with $0.03 a year ago.
For the current quarter, Varonis is expected to post earnings of $0.02 per share, indicating a change of -66.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Varonis. Also, the stock has a VGM Score of D.
Palo Alto Networks ve 3. čtvrtletí fiskálního roku 2026 zvýšila výnosy o 31 % na 3 miliardy USD a Next-Generation Security ARR vyskočil o 60 % na 8,1 miliardy USD. ETF zaměřená na kyberbezpečnost tak těží z robustních výsledků lídrů sektoru.
Key Takeaways Stocks like FTNT delivered strong Q2 growth as AI-driven cyber threats intensified demand. PANW's revenues rose 31%, while Next-Generation Security ARR surged 60% to $8.1 billion.ETFs like CIBR offer diversified exposure to cybersecurity's structural growth trend. This year’s second-quarter earnings cycle has delivered a clear message to investors: cybersecurity is no longer a defensive bet — it's a growth imperative. As enterprises grapple with an unprecedented surge in AI-driven cyber threats, which have jumped 89% from last year, according to CrowdStrike’s 2026 Threat Hunting Report, securing digital infrastructure has become a non-negotiable operational priority.
This reality has created a powerful tailwind for industry leaders like Palo Alto Networks (PANW - Free Report) , which has not only surpassed analyst expectations but also demonstrated accelerating momentum. Notably, the Nasdaq CTA Cybersecurity Index has soared 36.5% year to date, outperforming the broader Nasdaq Index’s 13% return over the same period.
For investors looking to capitalize on this secular growth trend, the recent market performance could make cybersecurity stocks and the exchange-traded funds (ETFs) that hold them compelling entry points.
The following section breaks down the standout financial performances delivered by top cybersecurity players in the second quarter and illustrates how their underlying strength powers broader ETF growth.
Q2 Performance Breakdown: Cybersecurity LeadersThe recent second-quarter earnings cycle highlighted strong top and bottom-line growth among leading cybersecurity companies, driven by an increasingly challenging AI-enabled threat environment:
CrowdStrike (CRWD - Free Report) reported a 26% year-over-year increase in revenues to $1.19 billion for the first quarter of fiscal 2027, while Annual Recurring Revenue (ARR) reached $5.51 billion as of April 30, 2026. Its adjusted earnings per share improved a solid 50.7% year over year, fueled by rapid customer adoption of its AI-powered Falcon platform.
It became the only cybersecurity company selected as a launch partner in both Anthropic’s Project Glasswing and OpenAI’s Trusted Access for Cyber (TAC) programs. The stock gained a solid 94.1% during the April-June quarter.
Palo Alto Networks posted third-quarter fiscal 2026 revenue growth of 31% to $3 billion, while its Next-Generation Security ARR surged 60% to $8.1 billion. CEO Nikesh Arora highlighted the latest advancements at the AI frontier, leading to increased demand for cybersecurity as the primary growth driver for the company.
Its remaining performance obligation (RPO) grew 36% year over year to $18.4 billion in the last reported quarter. The stock surged 112.2% during the second quarter of 2026.
Fortinet (FTNT - Free Report) delivered a standout performance in the second quarter of 2026, crushing estimates with its quarterly revenues of $2.05 billion, up 26% year over year. A 52% jump in its product revenues underscored massive demand for hardware and software upgrades designed to manage complex AI network traffic.
Moody’s Ratings has upgraded Fortinet’s senior unsecured notes rating to A3 from Baa1 and its senior unsecured shelf rating to (P)A3 from (P)Baa1, the highest rating of any public cybersecurity company. The stock has rallied 89.3% during the second quarter.
AI Threat Outlook: Why ETFs Offer a Better Entry StrategyAs generative AI lowers the technical barrier for cybercriminals to launch sophisticated phishing schemes, zero-day exploits, and automated ransom attacks, cybersecurity spending is shifting from discretionary IT expenses to critical utility-like infrastructure.
As the threat landscape evolves at machine speed, a long-term demand scenario is there for the sector. To this end, some market experts believe that cybersecurity companies have the potential to experience consistent outsized revenue growth, even in an economic downturn.
Against this backdrop, the combination of robust second-quarter earnings and an intensifying AI threat landscape presents an ideal entry point for cybersecurity ETFs. While individual stock picking exposes investors to company-specific volatility — such as post-earnings swings and execution risks — cybersecurity ETFs offer diversified, basket exposure to the primary beneficiaries of this structural growth trend without single-stock risk.
4 Cybersecurity ETFs to BuyConsidering the aforementioned discussion, investors may add the following ETFs to their portfolios:
First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report)
With $15.56 billion in net assets, the fund provides exposure to 42 companies primarily involved in developing, implementing, and managing security protocols for private and public networks, computers, and mobile devices to protect data integrity and network operations. PANW holds the first spot in this fund, with 9.74% weightage, while CRWD holds the second spot with 8.54% weightage. FTNT holds the third position with 8.25% weightage.
CIBR has risen 36.4% year to date and charges 58 basis points (bps) in fees. It traded at a good volume of 1.50 million shares in the last trading session.
Amplify Cybersecurity ETF (HACK - Free Report)
This fund, with net assets worth $2.97 billion, offers exposure to 23 companies actively involved in providing cybersecurity solutions that include hardware, software, and services. PANW holds the first spot in this fund with 6.57% weightage, while CRWD holds the second spot with 5.62% weightage. FTNT holds the sixth spot with 5.01% weightage.
HACK has soared 43.5% year to date and charges 60 bps in fees. It traded at a volume of 0.21 million shares in the last trading session.
Global X Cybersecurity ETF (BUG - Free Report)
This fund, with net assets worth $1.51 billion, offers exposure to 31 companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. PANW holds the first spot in this fund, with 8.02% weightage, while CRWD holds the third spot with 7.34% weightage. FTNT holds the fourth spot with 7.20% weightage.
BUG rallied 38.2% year-to-date and charges 50 bps in fees. It traded at a volume of 0.97 million shares in the last trading session.
iShares Cybersecurity and Tech ETF (IHAK - Free Report)
This fund, with net assets worth $1.08 billion, offers exposure to 35 companies at the forefront of cybersecurity across developed & emerging markets. Qualys holds the first spot in this fund, with 5.90% weightage, while PANW holds the third spot with 4.89% weightage. CRWD holds the sixth spot with 4.51% weightage.
IHAK has surged 36.7% year to date and charges 47 bps in fees. It traded at a volume of 0.12 million shares in the last trading session.
Fortinet uvedl, že výsledky za druhé čtvrtletí podpořila silná poptávka po hardwaru a SASE, přičemž Unified SASE vzrostl o 35 % a FortiSASE billings se více než zdvojnásobily. Produktové tržby stouply o 52 %.
Cybersecurity Stocks Are Holding Up as the AI Trade Starts to CrackFortinet NASDAQ: FTNT CFO Christiane Ohlgart said the cybersecurity company’s second-quarter performance was supported by broad-based global demand, accelerating hardware sales and growing adoption of secure networking and unified secure access service edge, or SASE, offerings.
Speaking at a fireside chat, Ohlgart described the quarter as “fantastic,” pointing to demand across geographies and multiple customer use cases. She said growth in FortiGate hardware was particularly strong as organizations expanded networks and sought to improve security for operational technology, software-defined wide-area networking, and artificial intelligence infrastructure.
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Time to Sell? 3 Winners With Fading Technical Momentum“We see broad-based demand across all our geos,” Ohlgart said. “We continue to see good demand for multiple use cases,” including OT, SD-WAN improvements, AI infrastructure and AI-enabled networking.
Unified SASE Growth Reflects Hardware and Cloud Strategy Ohlgart said Fortinet is benefiting from its installed base of SD-WAN customers as it seeks to extend those relationships into cloud-delivered SASE services. The company reported that Unified SASE grew 35% and represented about one-quarter of sales, while FortiSASE billings more than doubled, according to the discussion.
As AI Data Breaches Become More Common, This Cybersecurity ETF Is SurgingThe CFO said Fortinet’s approach differs from a cloud-only SASE model by combining cloud security with hardware deployed at the network edge. This model is particularly relevant for customers seeking unified security for both in-network and remote users, she said.
Ohlgart also cited sovereign SASE as an opportunity, especially in Europe, where regulations and customer requirements around control of infrastructure are becoming more important. She said Fortinet’s sovereign SASE pipeline is still developing and is currently smaller than its hybrid opportunity pipeline, but could be supported by telecommunications providers that want to build sovereign environments for customers such as public-sector organizations.
Fortinet’s recently introduced SD-WAN and SASE bundle includes services intended to improve SD-WAN functionality and security, along with a limited SASE license intended to give customers a way to test the cloud platform. Ohlgart said the bundle is designed as a starting point for future SASE upselling rather than an immediate driver of a major jump in billings or annual recurring revenue.
About 90% of Fortinet’s security service edge customers are already within its installed base, Ohlgart said, underscoring the role of existing SD-WAN deployments in the company’s SASE expansion.
Hardware Demand Includes Larger Appliances Fortinet reported product revenue growth of 52%, its second consecutive quarter of acceleration. Ohlgart said the increase was clearly demand-driven and required unit growth, but also reflected customers choosing larger hardware appliances.
“Even if we normalize for price increases, we saw ASP increases for the hardware,” she said, referring to average selling prices. Customers are moving toward “a little bit bigger boxes,” a trend the company has observed since the fourth quarter, she added.
Ohlgart said AI is contributing to this demand, not only through security needs around AI deployments but also because customers expect increased network traffic and are upgrading their infrastructure for greater performance.
The company has also adjusted hardware prices in response to component costs, including memory. Ohlgart said the impact of price increases on billings growth was in the high-single-digit percentage range. While memory prices have stabilized, she said availability remains constrained in some cases, potentially requiring expedited purchasing for certain components. Fortinet evaluates pricing on a product-by-product basis while seeking to remain competitive, she said.
Security, Networking and OT Remain Key Areas Ohlgart said Fortinet’s secure-networking strategy is gaining traction as customers look to consolidate technology, reduce operating complexity and improve their security posture. Fortinet’s switches can be controlled by a FortiGate through its FortiLink technology, enabling security inspection at the entry point to a network, she said.
Customers are increasingly looking beyond the cost of outside technology vendors and considering the internal staffing costs associated with managing fragmented infrastructure, Ohlgart said. Consolidated systems can help organizations operate network and security functions with fewer resources.
Fortinet also reported that OT billings accelerated 55% year over year. Ohlgart said demand spans public-sector organizations, manufacturers and other customers as awareness rises around the security risks facing critical infrastructure and increasingly digitized systems, including electric-vehicle charging stations.
The company uses OT specialists to support its account managers and works with industry partners including Rockwell, Honeywell, Siemens and Schneider Electric, according to Ohlgart.
Addressing concerns around disclosed vulnerabilities, or CVEs, Ohlgart said Fortinet’s large installed base makes it a frequent target and a subject of competitor criticism. She said the company aims to identify vulnerabilities in its own code, disclose them transparently and issue patches quickly. Fortinet is also working on measures such as virtual patching through its intrusion prevention system engine to protect devices before customers apply patches, she said.
Services and Future Growth Ohlgart said service billings grew 26%, while total deferred revenue increased 17% and service revenue rose 14%. She explained that service revenue is largely recognized from the balance sheet, while service billings reflect current-quarter selling activity, including renewals, services attached to hardware and service-only transactions.
Fortinet reported remaining performance obligations of $7.7 billion, up 16% year over year, and current RPO growth of 12%. Ohlgart said average service duration was about 30 months in the second quarter.
Looking toward 2027, Ohlgart said Fortinet sees new markets as the larger potential contributor to growth, including opportunities within its existing customer base as well as markets where it competes against other vendors.
About Fortinet (NASDAQ:FTNT)Fortinet, Inc NASDAQ: FTNT is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.
Fortinet's product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Virtue AI will enhance the Fortinet AI-Native Security Fabric with continuous agentic AI validation and runtime protection across the AI lifecycle | Source: Fortinet, Inc.
SUNNYVALE, Calif., Aug. 17, 2026 (GLOBE NEWSWIRE) -- Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced it has acquired Virtue AI, an innovator in AI runtime protection, automated AI validation, and security for autonomous AI systems. The acquisition advances the company’s broader Security for AI strategy and vision for securing the agentic enterprise, building on Fortinet's existing AI security solution portfolio, including its FortiGate Hyperscale Firewall.
As organizations rapidly deploy AI applications and autonomous agents, their attack surface expands beyond traditional networks, users, endpoints, applications, and cloud workloads. It now includes prompts, models, agents, Model Context Protocol (MCP) tools, application programming interface (API) calls, and AI infrastructure. Organizations need to adopt AI with confidence, keep it secure in production, and trust it behaves as intended.
Fortinet met that need earlier this year with FortiAIGate, which safeguards large language models (LLMs) from prompt injections, data leakage, model poisoning, excessive resource consumption, and other emerging AI-specific risks. Virtue AI extends that security to AI models, applications, and agentic systems from development through runtime, leveraging Virtue AI’s Guardian Agent abilities and key product capabilities, including:
Agentic system red-teaming: Tests autonomous agents for exploitable weaknesses across more than 50 sandboxed environments and 14 high-stakes domains, including simulated prompt-injection and MCP-based attacks against leading agent frameworks.Agent protection, governance, and visibility: Provides full visibility into agents and AI tools running in their environment, discovers unsanctioned AI applications and agents, scans MCP tools and source code for hidden risks, monitors agent behavior, and blocks malicious tool calls before they act.Continuous AI validation: Identifies new risks across every model update and fine-tuning of policies, while generating audit-ready evidence to support security and compliance reviews. The automated red-teaming runs across hundreds of attack vectors and more than 1,000 risk categories, with multimodal testing and on-demand reporting for security, risk, and compliance teams.Real-time guardrails: Enforces customizable policies across text, images, video, audio, and AI-generated code to keep harmful content, sensitive data, jailbreaks, and vulnerable code from reaching users or downstream systems. “AI is fundamentally changing enterprise computing, and security must evolve just as quickly,” said Ken Xie, Founder, Chairman of the Board, and Chief Executive Officer at Fortinet. “Virtue AI’s technology will advance our vision for continuous AI assurance, helping customers govern and protect AI systems throughout their lifecycle and while operating them confidently at enterprise scale.”
According to Gartner®, “the market for securing AI ecosystems and AI agents is rapidly expanding; products and tools are expected to expand from $2.8 billion in 2026 to $16.4 billion by 2030.”[1] Fortinet believes that anticipated market expansion reflects evolving industry demand to secure the AI era.
Customers already rely on the Fortinet AI-native Security Fabric for integrated protection across networks, endpoints, clouds, applications, and AI deployments. This acquisition complements FortiAIGate and further strengthens Fortinet’s AI runtime security capabilities with Virtue AI’s automated validation and real-time protection. Combined with coordinated enforcement and FortiGuard Labs threat intelligence, it will give organizations the confidence to secure AI systems throughout their lifecycle.
Financial terms of the transaction are not disclosed, and the amount paid by Fortinet as consideration is immaterial to Fortinet’s business.
Additional Resources
Read more about the Fortinet AI-Native Security Fabric.
Learn how Fortinet secures the AI Application Stack with FortiAIGate.Visit fortinet.com/trust to learn about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products.Follow Fortinet on X, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on our blog or YouTube. GARTNER is a trademark of Gartner, Inc. and/or its affiliates.
[1] Gartner, Forecasting the $16.4 Billion Opportunity in Securing AI, Shailendra Upadhyay, 30 July 2026
About Fortinet
Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Over a million lifetime customers trust Fortinet's solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (CERTS), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com and https://www.fortinet.com/blog.
Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
Fortinet zvýšil celoroční výhled na rok 2026 napříč tržbami, billings, službami i non-GAAP EPS díky silné poptávce po firewallech a SASE. Firma také uvedla, že AI a spolupráce s Intelem posilují její roadmapu ASIC a odolnost dodavatelského řetězce.
Key Takeaways Fortinet raised 2026 revenues, billings, service revenues and non-GAAP EPS guidance.SASE convergence, firewall refreshes and AI integration are driving broad-based demand.Fortinet's Intel collaboration aims to advance its ASIC roadmap and strengthen supply chain resilience. Fortinet, Inc. (FTNT - Free Report) has given investors fresh reason to pay attention after raising its full-year 2026 guidance on the back of accelerating firewall refresh cycles and surging SASE adoption. The upgraded outlook, delivered alongside second-quarter results, points to durable, broad-based demand across the company's security fabric, and the fundamentals underpinning that demand suggest the stock deserves a place in growth-oriented portfolios in the near term.
Fortinet shares have gained 103.9% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 86.2% and 17.7%, respectively. The rally is best viewed as the market catching up to accelerating billings and guidance rather than a stretched move, making the current entry point still reasonable for new positions.
FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research
Guidance Raised Across the BoardFollowing second-quarter 2026 results that topped the high end of prior guidance, management lifted full-year revenue guidance to $8.02-$8.18 billion, implying roughly 19% year-over-year growth, compared with the prior outlook of $7.71-$7.87 billion. Billings are raised to $9.35-$9.55 billion, service revenues are projected at $5.18-$5.22 billion, and non-GAAP EPS is anticipated between $3.41 and $3.47. Non-GAAP operating margin guidance stands at 35-37%, with non-GAAP gross margin guided to 79-81%.
The Zacks Consensus Estimate for 2026 earnings stands at $3.40 per share, implying 23.19% year-over-year growth.
For the third quarter, the company guided revenues to be in the range of $2.01-$2.10 billion and non-GAAP EPS to be between 83 cents and 87 cents. Infrastructure investment guidance for the full year was set at $350-$550 million, while full-year cash taxes are expected between $400 million and $450 million. This breadth of upward revisions across revenue, billings, margin and earnings metrics signals management's confidence that current demand trends are structural rather than a one-quarter pop.
SASE Firewall Convergence Driving the CycleThe core fundamental thesis rests on Fortinet's "SASE Firewall" positioning — the convergence of firewall, SD-WAN and SASE functionality on a single FortiOS operating system powered by purpose-built FortiASIC silicon. This architecture lets customers deploy consistent security policy on-premises, at the edge, or in the cloud without stitching together multiple vendors. That convergence was extended in late July with the launch of the FortiGate 1200G series paired with FortiSASE Outpost, which delivers up to 397 Gbps of firewall throughput and brings cloud-delivered SASE services into customer-controlled environments, targeting the sovereignty, latency and compliance needs of AI-era, encrypted-traffic workloads. Fortinet was also recognized as a Challenger in the 2026 Gartner Magic Quadrant for SASE Platforms, reinforcing its expanding footprint in that category.
AI Woven Into the Security FabricArtificial intelligence is increasingly central to Fortinet's product roadmap and go-to-market motion. FortiOS 8.0, introduced at Fortinet Accelerate 2026, added Secure AI Controls for shadow-AI visibility and fabric-based AI agents. In June, the company launched FortiSOC, a cloud-delivered security operations platform that embeds agentic AI to autonomously investigate and correlate alerts and recommend or execute response actions under analyst oversight. In mid-July, Fortinet expanded FortiEndpoint with new AI-era capabilities, consolidating AI visibility and governance, endpoint detection and response, and data security into one agent, console and license, with availability expected in the third quarter. On the infrastructure side, Fortinet deepened integration with NVIDIA to accelerate its FortiAIGate solution, protecting AI workloads, data and autonomous agents across data centers and cloud environments. Management has also credited internal AI initiatives with contributing to record non-GAAP operating margin, pointing to an efficiency tailwind alongside the revenue opportunity.
Silicon Roadmap Strengthens the MoatIn late July, Fortinet announced a strategic collaboration with Intel to develop its next-generation Fortinet Security Processor 6, combining Fortinet's purpose-built ASIC expertise with Intel's advanced design, packaging and manufacturing capabilities. This is expected to advance Fortinet's long-term ASIC roadmap while strengthening supply chain resilience and geographic diversification — a fundamental input into the performance and cost advantages that differentiate FortiGate appliances from software-only competitors.
Valuation and Competitive LandscapeFrom a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 44.39, higher than the sector's average of 21.53. The company carries a Value Score of F, though the premium is justified by Fortinet's superior margin profile, raised guidance trajectory and expanding AI- and SASE-driven total addressable market.
FTNT’s Valuation
Image Source: Zacks Investment Research
Competitively, Fortinet operates alongside Palo Alto Networks (PANW - Free Report) , Qualys (QLYS - Free Report) and Cisco (CSCO - Free Report) . Palo Alto Networks remains the largest platform rival, competing directly in firewall and SASE; Cisco leverages its networking incumbency to bundle security, competing with Fortinet's converged approach; and Qualys, more focused on vulnerability and exposure management, overlaps with Fortinet's broader security operations ambitions. Against Palo Alto Networks, Cisco and Qualys, Fortinet's ASIC-driven cost structure remains a differentiator.
ConclusionFortinet's raised 2026 guidance reflects genuine fundamental momentum — a firewall refresh cycle, expanding SASE convergence, deepening AI integration across SecOps and endpoint products and a strengthening silicon supply chain via Intel. While valuation is undeniably rich, the depth and breadth of Fortinet's product-led growth drivers support a constructive near-term stance on the stock. Fortinet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortinet, Inc. (FTNT) Q2 2026 Earnings Call July 29, 2026 4:30 PM EDT
Company Participants
Anthony Luscri - Vice President of Investor Relations
Ken Xie - Co-Founder, Chairman & CEO
Christiane Ohlgart - Chief Accounting Officer, CFO and Principal Financial & Accounting Officer
John Whittle - Chief Operating Officer
Conference Call Participants
Saket Kalia - Barclays Bank PLC, Research Division
Shaul Eyal - TD Cowen, Research Division
Gray Powell - BTIG, LLC, Research Division
Keith Bachman - BMO Capital Markets Equity Research
Meta Marshall - Morgan Stanley, Research Division
Fatima Boolani - Citigroup Inc., Research Division
Gabriela Borges - Goldman Sachs Group, Inc., Research Division
Junaid Siddiqui - Truist Securities, Inc., Research Division
Joseph Gallo - Jefferies LLC, Research Division
Presentation
Operator
Hello, and welcome to the Fortinet's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that this call is being recorded. I would now like to hand the call over to Anthony Luscri, Vice President of Investor Relations. Please go ahead.
Anthony Luscri
Vice President of Investor Relations
Thank you. Good afternoon, and thank you for joining us on today's conference call to discuss Fortinet's Second Quarter 2026 financial results. Joining me on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO; Christiane Ohlgart, our CFO; and John Whittle, our COO. Ken will begin our call today by providing a high-level perspective on our business, Christiane will then review our financial results for the second quarter of 2026 before providing guidance for the third quarter and updating the full year. We will then open the call for questions.
During the Q&A session, we ask that you please limit yourself to one question and one follow-up question to all. Before we begin, I'd like to remind everyone that on today's call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause actual
Exceeds high end of second quarter guidance on revenue and profitability
Raises 2026 revenue guidance to 19% year over year growth
Highlights
Revenue grew 26% year over year to $2.05 billion Product revenue grew 52% year over year to $773 millionBillings grew 33% year over year to $2.37 billion1GAAP operating margin of 34%Non-GAAP operating margin of 38%1GAAP earnings per share grew 44% year over year to $0.82Non-GAAP earnings per share grew 41% year over year to $0.901Operating cash flow of $1.04 billionFree cash flow of $966 million1 SUNNYVALE, Calif., July 29, 2026 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the second quarter ended June 30, 2026.
“We are very pleased with our excellent second quarter results, which reflect the differentiated value of our innovation in the AI Era,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “Our results reflect that customers value Fortinet’s unique ‘SASE Firewall’, with leading firewall, SD-WAN and SASE functionality integrated together on our single FortiOS operating system and powered by our purpose-built FortiASIC, offering customers flexible deployment in a sovereign form factor, on-prem and in the cloud.”
Recent Business Highlights
Announced a strategic collaboration with Intel to develop Fortinet Security Processor 6 (SP6), combining Fortinet’s proprietary, purpose-built security processor expertise with Intel’s advanced design, development, packaging, and manufacturing capabilities to accelerate SP6 development while strengthening the resilience and diversity of Fortinet’s global supply chain.Launched the FortiGate 1200G series with FortiSASE Outpost, combining local enforcement and cloud-delivered security to address customers’ evolving sovereignty, performance, and AI infrastructure requirements. The convergence of firewall and SASE technologies creates a new “SASE Firewall” market built for the realities of today’s hybrid world.Launched FortiSOC, a new cloud-delivered SOC platform that brings together six core security operations functions into a single AI SOC experience designed to simplify and scale modern security operations.Expanded FortiEndpoint converging multiple endpoint security innovations into one agent to help security teams safely enable AI adoption, strengthen data security, improve risk visibility, and simplify operations.Partnered with Anthropic on Project Glasswing (Mythos), OpenAI on Project Daybreak (GPT 5.5 Cyber), and NVIDIA as a founding member of its recently announced Open Secure AI Alliance for AI Safety and Security.Moody’s Ratings upgraded Fortinet’s senior unsecured notes rating to A3 from Baa1 and its senior unsecured shelf rating to (P)A3 from (P)Baa1, the highest rating of any public cybersecurity company. Guidance
For the third quarter of 2026, Fortinet currently expects:
Revenue in the range of $2.010 billion to $2.100 billionBillings in the range of $2.250 billion to $2.350 billionNon-GAAP gross margin in the range of 79.0% to 81.0%Non-GAAP operating margin in the range of 35.0% to 37.0%Diluted non-GAAP net income per share in the range of $0.83 to $0.87, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 741 million to 745 million. For the fiscal year 2026, Fortinet currently expects:
Revenue in the range of $8.020 billion to $8.180 billionService revenue in the range of $5.180 billion to $5.220 billionBillings in the range of $9.350 billion to $9.550 billionNon-GAAP gross margin in the range of 79.0% to 81.0%Non-GAAP operating margin in the range of 35.0% to 37.0%Diluted non-GAAP net income per share in the range of $3.41 to $3.47, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 741 million to 745 million. These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.
Conference Call Details
Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.
Third Quarter 2026 Conference Participation Schedule:
Rosenblatt Technology Summit: The Age of AI
August 17, 2026 Stifel Tech Executive Summit
August 24, 2026 Deutsche Bank Technology Conference
August 27, 2026 Goldman Sachs Communacopia + Technology Conference
September 8, 2026 Kepler Cheuvreux Autumn Conference
September 10, 2026 Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.
About Fortinet (www.fortinet.com)
Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the third quarter and full year 2026, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, changing interest rates or reduced information technology spending; supply chain challenges; negative impacts from global conflicts and their related macroeconomic effects; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of inflation and changing interest rates in certain geographies and the war in Ukraine, tensions between China and Taiwan or conflicts in the Middle East; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine, tensions between China and Taiwan or conflicts in the Middle East, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.
Use of Non-GAAP Financial Measures
We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.
FORTINET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in millions)
June 30,
2026 December 31,
2025ASSETS CURRENT ASSETS: Cash and cash equivalents$2,934.9 $2,495.3 Short-term investments 1,134.7 1,087.2 Accounts receivable—net 1,455.6 1,691.2 Inventory 426.3 399.5 Prepaid expenses and other current assets 256.8 227.0 Total current assets 6,208.3 5,900.2 LONG-TERM INVESTMENTS 399.1 339.7 PROPERTY AND EQUIPMENT—NET 1,699.5 1,619.0 DEFERRED CONTRACT COSTS 785.1 735.5 DEFERRED TAX ASSETS 1,319.4 1,314.9 GOODWILL AND OTHER INTANGIBLE ASSETS—NET 334.5 354.7 OTHER ASSETS 113.3 125.2 TOTAL ASSETS$10,859.2 $10,389.2 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable$282.5 $230.8 Accrued liabilities 393.7 354.6 Accrued payroll and compensation 322.8 312.9 Current portion of long-term debt — 499.7 Deferred revenue 3,841.8 3,636.0 Total current liabilities 4,840.8 5,034.0 DEFERRED REVENUE 3,833.9 3,479.8 LONG-TERM DEBT 496.9 496.6 OTHER LIABILITIES 136.5 141.3 Total liabilities 9,308.1 9,151.7 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY: Common stock 0.7 0.7 Additional paid-in capital 1,895.9 1,770.1 Accumulated other comprehensive loss (28.8) (25.4)Accumulated deficit (316.7) (507.9)Total stockholders’ equity 1,551.1 1,237.5 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$10,859.2 $10,389.2 FORTINET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)
Three Months Ended Six Months Ended June 30,
2026 June 30,
2025 June 30,
2026 June 30,
2025REVENUE: Product$773.0 $508.9 $1,418.1 $968.0 Service 1,274.9 1,121.1 2,479.4 2,201.7 Total revenue 2,047.9 1,630.0 3,897.5 3,169.7 COST OF REVENUE: Product 233.8 165.9 442.1 315.8 Service 170.9 149.0 327.1 292.2 Total cost of revenue 404.7 314.9 769.2 608.0 GROSS PROFIT: Product 539.2 343.0 976.0 652.2 Service 1,104.0 972.1 2,152.3 1,909.5 Total gross profit 1,643.2 1,315.1 3,128.3 2,561.7 OPERATING EXPENSES: Research and development 225.0 209.5 439.0 408.1 Sales and marketing 669.1 592.0 1,305.4 1,134.7 General and administrative 61.1 56.9 117.3 114.7 Gain on intellectual property matters (1.3) (1.3) (2.7) (7.6)Total operating expenses 953.9 857.1 1,859.0 1,649.9 OPERATING INCOME 689.3 458.0 1,269.3 911.8 INTEREST INCOME 33.2 45.0 66.1 89.3 INTEREST EXPENSE (3.2) (4.6) (7.4) (9.5)OTHER INCOME—NET 0.9 18.9 48.8 45.0 INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS 720.2 517.3 1,376.8 1,036.6 PROVISION FOR INCOME TAXES 115.0 77.1 237.0 173.6 GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS 1.1 (0.1) 1.0 10.5 NET INCOME$606.3 $440.1 $1,140.8 $873.5 Net income per share: Basic$0.83 $0.57 $1.55 $1.14 Diluted$0.82 $0.57 $1.54 $1.13 Weighted-average shares outstanding: Basic 733.1 765.5 735.9 766.9 Diluted 739.9 772.7 741.3 774.8 FORTINET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
Six Months Ended June 30,
2026 June 30,
2025CASH FLOWS FROM OPERATING ACTIVITIES: Net income$1,140.8 $873.5 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 151.8 135.2 Amortization of deferred contract costs 190.9 160.0 Depreciation and amortization 81.2 74.1 Amortization of investment discounts (9.3) (19.4)Other (47.7) (44.8)Changes in operating assets and liabilities, net of impact of business combinations: Accounts receivable—net 235.1 262.7 Inventory (38.0) (79.6)Prepaid expenses and other current assets (0.5) (32.1)Deferred contract costs (240.5) (202.5)Deferred tax assets (3.6) (75.3)Other assets (9.0) (11.7)Accounts payable 49.7 46.8 Accrued liabilities 54.5 (9.7)Accrued payroll and compensation 10.0 22.9 Deferred revenue 559.9 204.8 Other liabilities (4.6) 10.3 Net cash provided by operating activities 2,120.7 1,315.2 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of investments (756.0) (976.5)Sales of investments 118.4 5.7 Maturities of investments 587.5 869.6 Purchases of property and equipment (148.6) (234.3)Payments made in connection with business combinations, net of cash acquired — (41.6)Other 8.4 0.1 Net cash used in investing activities (190.3) (377.0)CASH FLOWS FROM FINANCING ACTIVITIES: Repurchase and retirement of common stock (972.8) (401.1)Repayment of senior notes (500.0) — Proceeds from issuance of common stock 62.3 31.3 Taxes paid related to net share settlement of equity awards (59.1) (77.0)Other (21.2) (0.1)Net cash used in financing activities (1,490.8) (446.9)EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — 1.3 NET INCREASE IN CASH AND CASH EQUIVALENTS 439.6 492.6 CASH AND CASH EQUIVALENTS—Beginning of period 2,495.3 2,875.9 CASH AND CASH EQUIVALENTS—End of period$2,934.9 $3,368.5 Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)
Reconciliation of GAAP to non-GAAP gross profit, gross margin, operating income, operating margin, net income and diluted net income per share
Three Months Ended June 30,
2026 June 30,
2025Revenue$2,047.9 $1,630.0 Reconciliation of non-GAAP gross profit: GAAP gross profit$1,643.2 $1,315.1 GAAP gross margin 80.2% 80.7%Add back: Stock‐based compensation 8.7 7.5 Amortization of acquired intangible assets 5.8 7.3 Non‐GAAP gross profit$1,657.7 $1,329.9 Non‐GAAP gross margin 80.9% 81.6% Reconciliation of non-GAAP operating income: GAAP operating income$689.3 $458.0 GAAP operating margin 33.7% 28.1%Add back: Stock‐based compensation 80.8 69.9 Amortization of acquired intangible assets 9.9 13.2 Gain on intellectual property matters (1.3) (1.3)Non‐GAAP operating income$778.7 $539.8 Non‐GAAP operating margin 38.0% 33.1% Reconciliation of non-GAAP net income: GAAP net income$606.3 $440.1 Add back: Stock‐based compensation 80.8 69.9 Amortization of acquired intangible assets 9.9 13.2 Gain on intellectual property matters (1.3) (1.3)Tax adjustment(a) (30.7) (30.8)Non-GAAP net income$665.0 $491.1 Reconciliation of non-GAAP net income per share, diluted GAAP net income per share, diluted$0.82 $0.57 Add back: Non-GAAP adjustments to net income per share 0.08 0.07 Non-GAAP net income per share, diluted$0.90 $0.64 Shares used in diluted net income per share calculations 739.9 772.7 (a) Non-GAAP financial information is adjusted to an effective tax rate of 18% in each period for the three months ended June 30, 2026 and 2025, on a non-GAAP basis, which differs from the GAAP effective tax rate.
Reconciliation of net cash provided by operating activities to adjusted free cash flow
Three Months Ended June 30,
2026 June 30,
2025Net cash provided by operating activities$1,043.6 $451.9 Less: Purchases of property and equipment (78.0) (167.8)Free cash flow$965.6 $284.1 Add: Real estate related purchases 30.3 143.8 Adjusted free cash flow$995.9 $427.9 Free cash flow margin 47.2% 17.4%Adjusted free cash flow margin 48.6% 26.3%Net cash used in investing activities$(184.6) $(266.2)Net cash used in financing activities$(147.9) $(414.2) Reconciliation of total revenue to total billings
Three Months Ended June 30,
2026 June 30,
2025Total revenue$2,047.9 $1,630.0 Add: Change in deferred revenue 324.2 149.2 Less: Deferred revenue balance acquired in business acquisitions — (0.8)Total billings$2,372.1 $1,778.4 1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures”.
Explanation of Non-GAAP Financial Measures
We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.
Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue as well as cash flows. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings are impacted by the term of security subscription and support agreements and do not provide an indication as to the timing of revenue being recognized from these service contracts. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.
Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment. Free cash flow margin is defined as free cash flow divided by GAAP revenue. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.
Adjusted free cash flow (non-GAAP). We define adjusted free cash flow as free cash flow plus cash payments associated with real estate related purchases. Adjusted free cash flow margin is defined as adjusted free cash flow divided by GAAP revenue.
Non-GAAP gross profit and gross margin. We define non-GAAP gross profit as gross profit plus stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit divided by GAAP revenue.
Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation and amortization of acquired intangible assets, less gain on intellectual property matters and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue.
We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business gross profit, gross margin and operating results over multiple periods. There are a number of limitations related to the use of non-GAAP financial measurements instead of the measurements calculated in accordance with GAAP. First, these non-GAAP financial measures exclude the items noted above. Second, the components of the costs and gains that we exclude from our calculation of non-GAAP measures may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures and evaluating non-GAAP operating income together with these measures calculated in accordance with GAAP.
Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP.
CrowdStrike, Fortinet a Palo Alto Networks všechny překonaly odhady a zvýšily výhled, protože firmy kvůli rostoucím kyberhrozbám dál přesouvají rozpočty do bezpečnostních platforem.
Cyber threats are escalating faster than most enterprise budgets can absorb, and the platform vendors capturing the largest share of that spend are pulling away from the pack. AI-generated phishing, ransomware, and identity attacks are pushing CISOs toward consolidated security stacks.
That is showing up cleanly in the numbers for the three names below. Each is US-listed on Nasdaq, each posted a beat-and-raise quarter, and each has a defensible moat that will benefit them in the second half of 2026.
CrowdStrike (CRWD) CrowdStrike (NASDAQ:CRWD | CRWD Price Prediction) is the AI-security bellwether, and Q1 FY27 confirmed the recovery from the July 2024 Falcon sensor incident is complete on the operating side. Revenue hit $1.39 billion, up 25.6% year over year, beating the $1.36 billion consensus. Non-GAAP EPS of $1.10 topped the $1.07 estimate, marking eight consecutive EPS beats. Net new ARR came in at a record Q1 $255.8 million, up 32%, pushing total ARR to $5.51 billion, up 24%. Free cash flow reached $468.5 million, a 34% FCF margin.
The bull case is platform depth. 51% of customers now run six or more modules, Charlotte AI is monetizing, and the QuiltWorks coalition with OpenAI and Anthropic positions Falcon as connective tissue for enterprise AI deployments. CEO George Kurtz framed the quarter bluntly: “In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption.” Management raised FY27 revenue guidance to $5.91 billion to $5.96 billion. The stock split 4-for-1 on July 2, and shares are up 60.45% year to date on a split-adjusted basis.
Risk: Legal and remediation costs tied to the 2024 outage still linger, stock-based comp ran $317.6 million in Q1, and forward valuation is rich at roughly 159x forward earnings. That is the price of leadership.
Fortinet (FTNT) Fortinet (NASDAQ:FTNT) is the value-relative name in this trio, and the Q1 FY26 report made the hardware refresh cycle impossible to ignore. Revenue of $1.85 billion rose 20.1% year over year and cleared consensus by 6.68%. Non-GAAP EPS came in at 82 cents versus the 62-cent estimate, a 32.26% surprise, the largest beat in five quarters. Product revenue jumped 41% to $645.1 million, billings grew 31% to $2.09B, and free cash flow hit a record $1.01 billion.
Fortinet holds the #1 firewall position with 55% unit market share, and FortiOS 8.0 introduced AI-driven and quantum-safe capabilities alongside the new FortiGate G Series. Partnerships with Anthropic (Project Glasswing), OpenAI, NVIDIA and Google Unified Security widen the SASE and AI security surface area. Margins are best-in-class: 80.8% gross margin, 30.6% operating margin and 27.3% net margin. Management raised FY26 revenue guidance to $7.71 billion to $7.87 billion.
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Shares are up 95.5% year to date, trading at roughly 53x forward earnings. CEO Ken Xie summarized the setup: “Billings grew 31% year over year, driven by the continued convergence of networking and security, an approach Fortinet has led for 26 years, and by an increasingly complex threat environment that is being intensified by AI.”
Risk: Tariff exposure and longer enterprise sales cycles could pressure the hardware line if macro softens.
Palo Alto Networks (PANW) Palo Alto Networks (NASDAQ:PANW) is the platformization story, and Q3 FY26 was the clearest evidence yet that the strategy is working. Revenue of $3 billion grew 31.1% year over year, beating the $2.94B consensus. Non-GAAP EPS landed at 85 cents versus the 80 cents expected. The signature metric, Next-Generation Security ARR, reached $8.1 billion, up 60% year over year. Remaining performance obligation climbed to $18.4 billion, up 36%. Free cash flow of $788 million supported a trailing 12-month adjusted FCF margin of 38.5%, and management is targeting 40% by FY28.
The CyberArk and Chronosphere acquisitions contributed $388 million to Q3 revenue, extending Palo Alto into identity and observability. CEO Nikesh Arora tied the momentum directly to AI: “Q3 was a standout quarter for Palo Alto Networks, with accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale.” Q4 revenue guidance of $3.345B to $3.355B implies roughly 32% growth. Shares are up 78.54% year to date.
Risk: Q3 carried a GAAP operating loss of $183 million because of acquisition-related costs, share-based comp ran $517 million, and the trailing P/E sits at roughly 257. Integration risk on CyberArk and Chronosphere is the swing variable through fiscal year-end.
What to Watch Next The July setup favors the platform leaders. Ransomware activity is intensifying, enterprises are consolidating vendors, and the three names above are converting that shift into ARR, FCF and raised guidance. Watch net new ARR at CrowdStrike, product revenue at Fortinet as the hardware refresh runs, and NGS ARR at Palo Alto Networks for confirmation that the second-half thesis holds.
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Fortinet jde do výsledků za druhé čtvrtletí po 24 čtvrtletích v řadě bez zklamání ve výsledcích. V prvním čtvrtletí zrychlily tržby z produktů o 41 % meziročně a firma zvýšila celoroční výhled.
Fortinet (NASDAQ:FTNT | FTNT Price Prediction) heads into Wednesday’s Q2 earnings report with a record few cybersecurity companies can match: 24th consecutive quarter without an earnings miss. The business is generating record free cash flow, and is running a buyback program large enough to function as a de facto dividend. Here are 3 reasons this cybersecurity giant looks appealing ahead of earnings:
Product Revenue Just Accelerated 41% Fortinet’s Product revenue reaccelerated to +41% YoY in Q1, and billings jumped 31%, signaling the firewall refresh cycle around FortiOS 8.0 and the FortiGate G Series is live.
In addition, management raised FY26 guidance to $7.71B–$7.87B revenue and $3.10–$3.16 in non-GAAP EPS. The company’s Q1 earnings report drove a +28.17% 30-day move against the S&P 500’s +0.75%, which demonstrates how a strong report on Wednesday could elicit a meaningful market reaction.
Fortinet’s $10.25 Billion Share Buyback In Q1 alone, Fortinet repurchased $823 million of stock. These purchases have proven to be well timed, as the stock has since raced forward, and they show the business’s capability to return capital to shareholders.
Today, the company sits on a $10.25 billion total share repurchase authorization after a $1.0 billion board raise, and produced record free cash flow of $1.006 billion (+26.32% YoY) to fund it. The company’s net debt to EBITDA sits at -0.67, so the balance sheet has ample room to fund the buybacks directly.
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Fortinet’s Valuation Looks Reasonable Compared to Palo Alto Cybersecurity companies are known for trading at high multiples, but Fortinet looks reasonably valued compared to peers. The stock trades at a forward P/E of 52x against a business compounding at roughly 15% YoY revenue growth with a 31.3% operating margin and a 27.5% net margin. A competitor, Palo Alto Networks (NASDAQ:PANW), trades at a forward P/E of 78x with a TTM operating margin of -2.47%.
Strong Execution Is Offsetting Supply-Chain Pressure The bear case is valuation and lingering supply-chain risk. Both were the exact concerns cited by the last analyst downgrade, and both were answered in the same quarter Fortinet posted 41% product revenue growth and $1.01 billion of free cash flow. CEO Ken Xie framed it directly, noting the company’s “direct operations, manufacturing model and strong execution turn supply chain challenges into opportunities to gain market share.”
If the firewall refresh cycle continues, Fortinet can use its growing cash flow and $10.25 billion authorization to repurchase more shares. That combination gives long-term investors two potential return drivers: continued business growth and a steadily declining share count.
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Fortinet představil FortiGate 1200G s FortiSASE Outpost, který spojuje lokální a cloudové zabezpečení pro hybridní prostředí. Dostupnost je plánována na 3. čtvrtletí 2026.
SUNNYVALE, Calif., July 28, 2026 (GLOBE NEWSWIRE) -- Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced the FortiGate 1200G series, the newest addition to the FortiGate G series with FortiSASE Outpost, which brings cloud-delivered security services into customer-controlled environments. By combining high-performance threat protection, modern connectivity, hardware-rooted platform security, and cloud-delivered security capabilities, the solution gives organizations the flexibility to enforce security where it makes the most business sense. Whether on-premises, at the edge, or in the cloud, security teams can maintain consistent protection, high performance, and simplified operations across hybrid environments.
“The convergence of firewall and SASE technologies is creating a new SASE firewall market built for the realities of today’s hybrid world,” said Ken Xie, Founder, Chairman of the Board, and CEO of Fortinet. “Fortinet anticipated this shift by building FortiGate and FortiSASE on FortiOS and investing in proprietary ASIC technology that delivers security and performance at scale from day one. The FortiGate 1200G with FortiSASE Outpost capability advances this vision by combining local enforcement and cloud-delivered security to address customers’ evolving sovereignty, performance, and AI infrastructure requirements.”
FortiGate 1200G Series: High-Performance Security Built for AI Infrastructure
As AI adoption, encrypted traffic, and hybrid infrastructure reshape enterprise networks, organizations need to inspect growing traffic volumes without introducing performance bottlenecks. They also need the flexibility to determine where security enforcement occurs based on application performance, data sovereignty, compliance, and operational requirements.
Powered by Fortinet’s latest FortiASIC architecture, the FortiGate 1200G series accelerates networking and security processing to deliver predictable, low-latency protection for demanding enterprise and data center environments. Flexible 10G, 25G, and 100G connectivity helps organizations modernize their infrastructures, while hardware-rooted protections strengthen the integrity and resilience of the FortiGate 1200G.
Key benefits of the FortiGate 1200G include:
Keeping applications fast: Predictable low-latency inspection powered by FortiASIC enables organizations to secure encrypted and AI-driven traffic without sacrificing application performance.Modernizing with room to grow: Flexible connectivity supports campus, data center, and hybrid environments while providing headroom for future AI-driven growth.Increasing operational resilience: Hardware-rooted protections, secure credential storage, and built-in redundancy strengthen platform integrity and improve business continuity.Reducing operational complexity: FortiOS consolidates networking and security while enabling consistent policy management across appliances and cloud-delivered services. When configured as a FortiSASE Outpost, the FortiGate 1200G can operate as a high-performance local SASE point of presence (POP), giving organizations another option for where security inspection and enforcement occur.
SpecificationFortiGate 1200G SeriesSecurity Compute RatingCompetitors AveragePAN
PA-5410Cisco Firepower 4115Check Point Quantum 9800Juniper SRX 2300Firewall Throughput (Gbps)397.04.5x89.152.480.0185.039.0IPSec VPN Throughput (Gbps)102.02.8x36.520.015.075.036.0Threat Protection (Gbps)40.01.8x22.035.0 25.06.0Concurrent Sessions40M3.0x13.5M5M15M29M5MConnections Per Second1M2.4x411K270K210K715K450KPower ConsumptionFortiGate 1200G SeriesEnergy EfficiencyCompetitors AveragePAN
PA-5410Cisco Firepower 4115Check Point Quantum 9800Juniper SRX 2300Watts/Gbps Firewall Throughput1.95.6x10.514.613.82.111.5Watts/Gbps IPsec VPN Throughput7.34.4x32.438.073.35.612.5 Threat protection performance is measured with firewall, IPS, application control and malware protection, and logging enabled.The numbers for competitive solutions are based on publicly available sources. Variations in testing methodologies and performance metrics may exist across different vendors.All power consumption values are taken from external data sheets and hardware system guides using maximum power consumption. Industry analysts see converged firewall and SASE architectures as increasingly important for organizations preparing networks for AI-driven demands.
“Converged SASE and firewall platforms provide the flexibility to meet dynamic, AI-accelerated network architectures where they are, rather than becoming part of next year’s technical debt,” said Pete Finalle, Research Manager at IDC. “Buyers that judge platforms only by how well they fit today’s environment, rather than how effectively they can adapt to tomorrow’s, are already behind.”
FortiSASE Outpost: Sovereign Security Delivered at the Edge
Organizations increasingly need the flexibility to determine where security inspection and enforcement occur based on their business, performance, sovereignty, and compliance requirements. Traffic can be routed through a cloud-based SASE POP, while data-sensitive, or latency-critical traffic can be processed locally through FortiSASE Outpost running on a FortiGate within a customer-controlled environment.
Configured as a FortiSASE Outpost, the FortiGate operates as an ASIC-accelerated on-site SASE POP, delivering security inspection, policy enforcement, and access control closer to users and data. Organizations can strategically place on-site POPs near large concentrations of users in regions without a nearby cloud POP, helping reduce latency, preserve application performance, and lower bandwidth costs.
This differentiated Fortinet architecture allows organizations to use Fortinet-operated POPs, on-site POPs, or both. The FortiSASE interface centrally manages configuration, policy, monitoring, lifecycle operations, and upgrades across both deployment models, maintaining consistent zero-trust policies, visibility and protection without treating the on-site POP as a separate security environment.
Organizations can also keep designated traffic, logs, and processing within defined geographic or private infrastructure boundaries to meet regulatory requirements and reduce connectivity costs without changing the end-user experience.
Protect Every User without Sacrificing Performance or Control
Regardless of where enforcement occurs, users receive a consistent access experience, and organizations maintain common security policies, visibility, and zero-trust controls. This enables security teams to keep designated traffic, processing, and logs within specific geographic, jurisdictional, or private infrastructure boundaries without creating a separate security architecture or changing how users connect to applications.
This deployment flexibility is especially important for AI-driven environments. Agents, applications and connected devices generate growing volumes of east-west traffic that may not need to be routed through a cloud POP and back. Using the FortiGate as a high-performance local enforcement point, organizations can inspect this traffic closer to the user. This helps reduce latency, preserve application performance, and maintain control over sensitive information.
Built on FortiOS, FortiGate and FortiSASE share policy, threat intelligence, security context, and zero-trust decisions across local and cloud-delivered environments. FortiGuard AI-Powered Security Services provide real-time intelligence and automated protection across both deployment models, while FortiAI helps security teams investigate and respond to threats faster without adding operational complexity.
Analysts also point to the need for architectures that let organizations choose where enforcement occurs without fragmenting policy, operations, or the user experience.
“Organizations should not have to choose between the scalability of cloud-delivered security and the performance, control, or sovereignty of on-premises enforcement,” said Will Townsend, Chief Analyst, LoneStar Advisory and Research. “The convergence of these models is creating a meaningful new SASE firewall market. Fortinet is well positioned for this shift, enabling customers to apply security through cloud-delivered FortiSASE or locally with the FortiGate 1200G and with FortiSASE Outpost, based on what their business requires, while maintaining consistent policy, visibility, and user experience.”
Availability
FortiGate 1200G is expected to be available in Q3 2026. For more information, visit here.
Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
Fortinet před výsledky za 2. čtvrtletí musí ukázat zrychlení růstu tržeb z produktů, aby podpořil důvěru investorů. Jefferies čeká silné produktové trendy a překonání cíle pro billings.
Fortinet Inc (NASDAQ:FTNT) is set to report its second quarter results on July 29, with Jefferies analysts highlighting that the company needs to show an acceleration in product revenue growth to support investor confidence in the durability of its recent performance.
The firm expects solid product trends in the quarter, driven by price increases and improving channel checks, but wrote that investors will be looking for evidence the momentum can extend beyond the near term.
Jefferies expects product revenue growth to strengthen from the first quarter as Fortinet benefits from a full quarter of higher pricing and what it described as improving demand trends. The firm's proprietary survey showed performance versus plan improved sequentially, while channel checks pointed to healthy firewall demand despite some inventory constraints and longer appliance lead times.
The firm wrote that while product strength could continue for another quarter or two, it needs greater confidence that growth can be sustained into 2027 and that services billings, particularly subscriptions, will remain strong before becoming more constructive on the stock.
Billings will also be closely watched. Jefferies expects Fortinet to exceed its second-quarter billings guidance, which calls for 20% year-over-year growth at the midpoint, but does not expect management to significantly raise its full-year billings outlook given tougher comparisons in the second half of the year and longer lead times for appliances.
Margins are another focus. Jefferies expects Fortinet's midpoint guidance for a 34% non-GAAP operating margin to be achievable, supported by recent price increases and lower-cost inventory. However, it wrote that investors are likely to monitor the impact of rising memory costs and longer procurement cycles on margins later this year.
Jefferies' latest survey showed Fortinet's average performance versus plan improved to 2.3% above plan in the second quarter from 0.5% below plan in the first quarter, outperforming the average across cybersecurity vendors covered in the survey. The firm also wrote that investors will be looking for further signs of momentum in Fortinet's secure access service edge (SASE) business as the company continues to expand its bundled offerings.
Shares of Fortinet are up about 90% so far this year, trading hands at $151 on Thursday.
Fortinet (FTNT - Free Report) closed the most recent trading day at $158.10, moving -1.41% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.89%. Elsewhere, the Dow saw an upswing of 0.74%, while the tech-heavy Nasdaq appreciated by 1.29%.
Shares of the network security company witnessed a gain of 10.3% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.6%, and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2026. It is anticipated that the company will report an EPS of $0.75, marking a 17.19% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.88 billion, indicating a 15.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.15 per share and a revenue of $7.8 billion, demonstrating changes of +14.13% and +14.67%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. At present, Fortinet boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Fortinet is presently being traded at a Forward P/E ratio of 50.85. This expresses no noticeable deviation compared to the average Forward P/E of 50.85 of its industry.
We can additionally observe that FTNT currently boasts a PEG ratio of 3.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Security industry stood at 3.24 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 40, finds itself in the top 17% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Fortinet začne vyrábět svůj příští bezpečnostní čip SP6 v závodech Intel Foundry na procesu Intel 4. Jde o prvního jmenovaného zákazníka pod vedením Lip-Bu Tana.
While Intel continues to pursue a marquee customer for its foundry services, the chipmaker has landed a notable client from the cybersecurity space.
Fortinet will use Intel's foundry to produce its next-generation security chip, the two companies announced Tuesday, marking a win for Intel CEO Lip-Bu Tan, who took over the company in March 2025. Fortinet's chip, SP6, will be manufactured on the Intel 4 process, an Intel representative told CNBC.
Intel said in a filing in April that it's still trying to secure a "significant" customer for the company's most advanced manufacturing technology, as it tries to justify the large capital expenditures needed to build factories in the U.S. and overseas.
The company's leading processes designed to manufacture computer processors are known as 14A and 18A. Intel 4 is older manufacturing technology that's less advanced and was established for simpler chips called ASICs for networking.
Tan told CNBC's Jim Cramer in May that "multiple customers" were working with Intel's foundry, but he also said that it's his personal policy not to disclose their names. A major customer announcement would increase confidence among chip designers and investors that Intel is capable of building the most advanced chips in large quantities.
So far, Intel's biggest confirmed customer for its foundry is itself. The U.S. government is also using the foundry to make chips for defense. Under Pat Gelsinger, Intel's previous CEO, Microsoft announced a partnership with the chipmaker to manufacture an unspecified processor in 2024, and Amazon said later that year it would use Intel to build a custom artificial intelligence chip, but those announcements were for relatively low-volume chips.
In April, Intel said it would help design an ASIC with Google that it calls an infrastructure processing unit. Intel is also helping Elon Musk's Tesla and SpaceX build a chip factory called Terafab. And President Donald Trump said in June that Apple would use Intel to manufacture chips in the U.S., but neither company has officially confirmed a deal. The U.S. government took a 10% stake in Intel in August, sparking a rally that's lifted the chipmaker's stock price by more than 300% in the past year.
Intel is scheduled to report second-quarter results on Thursday after the bell.
Fortinet doesn't have the name recognition of Apple, Tesla or any of the hyperscalers, but it's operating in a hot market due to the heightened demand for advanced security in a world increasingly dominated by AI. Fortinet's stock price has more than doubled this year, and the company said on its last earnings call in May that it would keep in investing in its ASIC technology.
Fortinet rozšířil FortiEndpoint o nové funkce pro umělou inteligenci, včetně viditelnosti a řízení AI aplikací, nativní ochrany dat a asistovaných operací. Novinky mají být dostupné ve 3. čtvrtletí 2026.
SUNNYVALE, Calif., July 14, 2026 (GLOBE NEWSWIRE) -- Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced new capabilities for its unified endpoint platform, FortiEndpoint, designed to help organizations securely adopt AI, protect sensitive data, and reduce risk. By bringing AI visibility and control, native data security, endpoint risk scoring, and FortiAI-assisted operations into FortiEndpoint, Fortinet enables security teams to better govern AI usage, reduce sensitive data exposure, enforce risk-aware access, and simplify security operations across distributed environments.
“Organizations need a simpler and more effective way to manage security as their environments become more complex and AI-enabled,” said Michael Xie, Founder, President, and CTO at Fortinet. “The Fortinet Security Fabric is designed to converge critical security and networking functions across the enterprise, helping customers reduce complexity, improve visibility, and strengthen protection. With FortiEndpoint, we are extending that strategy by consolidating security, secure access, data security, AI visibility, and assisted operations in a unified endpoint platform, delivered through one agent, one console, and one license.”
A Platform Approach to AI-Era Endpoint Security
As agents and AI-enabled applications become embedded in everyday work, organizations need better visibility, stronger governance, and integrated protection to securely enable AI while reducing endpoint risk and protecting sensitive data. These needs are even more urgent as threat actors move faster and use increasingly sophisticated techniques to exploit gaps across users, devices, applications, and data. The pressure security teams are facing is compounded by fragmented tools across protection, detection and response, secure access, and data security, which can slow security teams and limit visibility.
FortiEndpoint builds on the consolidation strategy previewed at Fortinet Accelerate 2026 by bringing AI visibility and governance, endpoint protection, detection and response, secure remote access, native data security, and FortiAI-assisted operations together through one agent, one console, and one license. Through integration with the Fortinet Security Fabric, endpoint telemetry and risk context can inform connected security controls, strengthening adaptive access, policy enforcement, and enterprise-wide visibility.
These capabilities help define Fortinet’s approach to endpoint security for the AI era, advanced through three key areas of innovation:
Securing AI Use at the Endpoint
FortiEndpoint provides centralized visibility and control over sanctioned and unsanctioned AI application and agent usage across endpoints, including installed AI apps, agents, and web-based tools. From a single view, organizations can identify agents and applications in use, monitor adoption, and understand user activity to help surface shadow AI, unmanaged applications, and unauthorized tool usage.
With granular guardrail policies, security teams can allow, restrict, monitor, or block applications based on corporate security, compliance, and data security requirements. This supports responsible AI adoption while reducing the risk of unsanctioned tools, sensitive data exposure, and policy violations.
Reducing AI-Driven Data Exposure and Insider Risk
FortiEndpoint now natively supports DLP to help secure AI interactions and reduce insider risk by automatically inspecting sensitive data exchanged with AI applications, agents, and web services. Built-in user coaching provides real-time policy guidance to help users understand acceptable AI usage and reduce risky behaviors without impacting productivity.
This helps prevent the leakage of sensitive data such as personally identifiable information, intellectual property, and financial information directly at the endpoint. By integrating DLP into FortiEndpoint, organizations can safely adopt AI while maintaining stronger data security and compliance controls without adding another point product or management layer.
Unifying Endpoint Security, Access, Data Security and AI-Assisted Operations
FortiAI-Assist is built into FortiEndpoint to simplify administration and accelerate day-to-day operations. Security teams can use natural language to investigate events, visualize findings, generate investigation summaries, identify high-risk devices, and troubleshoot issues. It also provides contextual insights, policy recommendations, and risk guidance to help analysts strengthen governance, prioritize threats, scale threat hunting, and improve efficiency through a unified management experience.
These assisted workflows are complemented by adaptive zero-trust capabilities with dynamic risk and compliance scoring. By continuously assessing endpoint health, compliance status, and risk posture, FortiEndpoint helps organizations make access decisions based on real-time context, so access to AI applications and protected resources can be adjusted as risk changes. This helps organizations reduce exposure, enforce more consistent policy, and safely support AI-enabled work.
Industry analysts are also recognizing the importance of this integrated approach as organizations look for practical ways to govern AI use without adding more tools and complexity.
“Fortinet is addressing what many CISOs need now: visibility into AI usage, control over sanctioned and unsanctioned tools, protection against sensitive data leakage, and real-time coaching to help employees use AI responsibly,” said Chris DePuy, Technology Analyst at 650 Group. “Delivering these capabilities through FortiEndpoint gives customers a practical way to manage AI risk with the same agent and license they already rely on for endpoint security.”
Read the blog and listen to the webinar for more detail on how FortiEndpoint helps organizations securely adopt AI, protect sensitive data, reduce risk, and simplify security operations.
Availability
The new FortiEndpoint enhancements are expected to be available in Q3 2026. For more information, visit here.
Additional Resources
Read more about FortiEndpoint.Read more about the Fortinet Security Fabric.Learn about the Fortinet Open Ecosystem.Visit fortinet.com/trust to learn about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products.Read about how Fortinet customers are securing their organizations.Learn about Fortinet’s commitment to product security and integrity, including its responsible product development and vulnerability disclosure approach and policies.Follow Fortinet on X, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on our blog or YouTube. About Fortinet
Fortinet (NASDAQ: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet's solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTS”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs.
Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
Fortinet zvýšil celoroční výhled pro rok 2026 po růstu tržeb o 20 % na 1,85 miliardy USD v 1. čtvrtletí. Firma zároveň uvedla nové modely FortiGate G Series 3500G a 400G a cloudovou platformu FortiSOC.
Key Takeaways Fortinet expanded FortiGate with new G Series models and launched the FortiSOC cloud SOC platform.FTNT posted 20% Q1 revenue growth, record free cash flow and raised full-year 2026 guidance.Fortinet balances FortiGate hardware growth with FortiSOC expansion amid rollout and adoption challenges. Fortinet's (FTNT - Free Report) push to expand its FortiGate hardware lineup and cloud-delivered security operations platform is reigniting investor attention on the cybersecurity firm's growth runway. The company recently widened its FortiGate G Series with the 3500G and 400G models, built on its proprietary NP7 and SP5 processors and running FortiOS 8.0, the operating system introduced in March 2026 with AI-driven security, SASE and quantum-safe capabilities.
The FortiGate 3500G targets high-density data centers, delivering 595 Gbps of firewall throughput and support for 179 million concurrent sessions, while consuming just 1.6 watts per Gbps of throughput. The FortiGate 400G, aimed at enterprise edges, offers 164 Gbps of firewall throughput and 28 million concurrent sessions. On the cloud side, Fortinet in June 2026 launched FortiSOC, a unified, cloud-delivered security operations platform that consolidates six SOC functions into a single SaaS experience with embedded agentic AI for alert investigation and response.
These product moves followed a strong first quarter. Revenues grew 20% year over year to $1.85 billion, with product revenues increasing 41% to $645 million and billings rising 31% to $2.09 billion. GAAP operating margin came in at 31%, non-GAAP operating margin at 36%, and non-GAAP EPS rose 41% to 82 cents, alongside record free cash flow of $1.01 billion. Management raised full-year 2026 revenue guidance to roughly 15% year-over-year growth, with full-year revenues now expected between $7.71 billion and $7.87 billion and non-GAAP operating margin guided to 33-36%.
The growth narrative isn't without friction. Product revenue strength reflects a hardware refresh cycle that can be lumpy, and the FortiSOC rollout currently spans only the U.S. and EMEA at launch, with broader regional expansion planned through 2026 — meaning near-term cloud contribution remains modest relative to the installed base. FortiSOC also layers onto, rather than replaces, existing tools like FortiAnalyzer and FortiSIEM, raising questions about how quickly customers migrate. Even so, the combination of differentiated ASIC-based hardware economics and an expanding SaaS security-operations footprint gives Fortinet two distinct growth levers heading into the back half of 2026, with execution against raised guidance the next test for the stock.
How Rivals Palo Alto Networks and Check Point CompareOn the same firewall-and-cloud-SOC theme, Palo Alto Networks (PANW - Free Report) and Check Point Software (CHKP - Free Report) offer contrasting benchmarks. Palo Alto Networks posted second-quarter fiscal 2026 revenues of $2.6 billion, up 15% year over year, with product revenues up 22%, while its Cortex XSIAM cloud SOC platform helped drive next-generation security ARR up 33% to $6.33 billion. Check Point, by contrast, reported first-quarter 2026 revenues of $668 million, up just 5%, with security subscriptions rising 11% to $323 million, as weaker firewall appliance revenues tied to go-to-market execution changes weighed on results. Against Palo Alto Networks' faster cloud-platform ARR growth and Check Point's appliance-driven softness, Fortinet's FortiGate hardware gains and FortiSOC launch position it between the two on execution.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 88.5% in the past six-month period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 48.4% and 11.6%, respectively.
FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 46.41, higher than the sector's average of 23.39. The company carries a Value Score of F.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.13 per share for 2026, which implies year-over-year growth of 13.41%.
Fortinet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortinet spustil FortiSOC, platformu AI pro SecOps, a zároveň zvýšil výhled tržeb na rok 2026 na 7,71 až 7,87 miliardy USD. V 1. čtvrtletí tržby vzrostly o 20 % na 1,85 miliardy USD a EPS o 41 % na 82 centů.
Key Takeaways FTNT launches FortiSOC, an AI-driven SecOps platform integrating 6 security functions into one SaaS console.FTNT posted Q1 revenues of $1.85B, up 20%, with billings rising 31% and EPS climbing 41% to 82 cents.Fortinet raised 2026 revenue outlook to $7.71B-$7.87B, citing AI-driven demand and platform innovation. Fortinet (FTNT - Free Report) is further leaning into artificial intelligence as a growth lever, having launched FortiSOC, a unified, cloud-delivered security operations center platform powered by agentic AI. The move raises the question of whether this AI-driven push can translate into sustained stock momentum. FortiSOC consolidates six security operations functions, including SIEM, SOAR, behavioral analytics, threat intelligence and identity threat detection, into a single SaaS console. Its centerpiece, FortiAI-Assist, autonomously investigates and correlates alerts, generates playbooks and coordinates response actions across thousands of multivendor tools using Model Context Protocol-based agent coordination, while keeping human analysts in oversight roles. The launch builds on AI-focused SecOps innovations previewed at the company's Accelerate 2026 event, positioning Fortinet to compete in the expanding market for AI-assisted threat detection as attackers themselves increasingly weaponize AI.
This AI expansion follows a financially strong first quarter wherein revenues reached $1.85 billion, up 20% year over year, while product revenues jumped 41% to $645 million. Billings, an indicator of forward demand, rose 31% to $2.09 billion. Profitability metrics were equally robust: non-GAAP operating margin hit a first-quarter record of 35.8%, non-GAAP earnings per share grew 41% to 82 cents, and the company generated record operating cash flow of $1.08 billion and free cash flow of $1.01 billion. An increasingly complex threat environment, intensified by AI, alongside new platform differentiators like FortiOS 8.0 and FortiASIC technology, were cited as demand drivers behind this growth.
On the back of this performance, Fortinet raised its full-year 2026 guidance, now projecting revenues between $7.71 billion and $7.87 billion and non-GAAP operating margin of 33% to 36%. Whether FortiSOC converts into durable subscription growth, however, remains to be tested against execution risk, AI-related competitive pressure and the company's ability to turn previewed innovations into sustained billings momentum in the coming quarters.
Microsoft and Palo Alto Networks Push Their Own Agentic AI BetsFortinet is not alone in racing toward agentic AI security. Microsoft (MSFT - Free Report) has built Security Copilot into an agentic SOC layer across Defender, Sentinel and Purview, alongside Agent 365, a control plane to govern AI agents that became generally available last month. Palo Alto Networks (PANW - Free Report) has taken a similar path through Prisma AIRS 3.0, designed to secure the full agentic AI lifecycle, reinforced by its 2026 acquisitions of Portkey and Koi to govern and protect autonomous agents. While Microsoft leans on platform-wide integration and Palo Alto Networks emphasizes lifecycle and identity security, both illustrate how agentic AI has become a central competitive battleground alongside Fortinet in cybersecurity.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have lost 20.4% in the past six-month period, underperforming the Zacks Security industry’s 9.8% decline and the broader Computer and Technology sector’s 22.1% growth.
FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a price-to-book ratio of 84.98, higher than the sector's average of 21.7. The company carries a Value Score of D.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $2.69 per share for 2026, which implies year-over-year growth of 13.5%.
Fortinet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortinet uvedl, že jeho firewally a zařízení VPN jsou cílem kampaně na krádež přihlašovacích údajů. Podle výzkumníků bylo kompromitováno asi 75 000 zařízení.
CompaniesWASHINGTON, June 17 (Reuters) - Researchers say a sweeping hacking campaign targeting devices made by Fortinet (FTNT.O), opens new tab has led to compromises across the internet, with evidence of password theft at Fortune 500 companies and government agencies in more than 15 countries.
Most of the affected devices were in the United States, India, and Taiwan, according to Hudson Rock, a firm that tracks cybercrime. Hudson Rock described the scale of the spy campaign as "staggering."
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"The scale of this breach touches nearly every sector of the global economy, sparing no industry," it said in a blog post, opens new tab published on Wednesday. The firm said that some 75,000 Fortinet firewall and VPN devices - tools that companies use to protect their networks and allow employees to log in remotely - had been compromised, potentially allowing the hackers to penetrate deeper into these organizations and steal data.
In a statement, Fortinet said it was aware of a campaign to steal login credentials from its firewall and VPN devices.
The company said that hackers were drawing on data "from previous incidents" and guessing passwords repeatedly - a technique known as "bruteforcing" to break into target networks or devices.
Fortinet said the malicious cyber activity was "not related to any recent incident or advisory." The company did not immediately respond to questions about the scope of the campaign uncovered by researchers, and Reuters could not establish how many password thefts led to intrusions at the affected companies.
Officials at the U.S. cyber defense agency CISA, the FBI, and the Office of the National Cyber Director did not immediately return emails. Cybersecurity officials in India and Taiwan did not immediately return emails.
Agencies in the states of Washington and Nevada whose credentials were captured in the data did not immediately respond to a request for comment. A staffer at one agency in South Carolina told Reuters they were unaware of the situation, while another employee said they would look into it before providing any additional information.
Nearly 120 distinct credentials across five government entities in Puerto Rico were among those swept up in the campaign, according to cybersecurity research firm Hudson Rock. A spokesperson for the Puerto Rico Police Department, which was included in the list, referred questions to the Puerto Rico Innovation and Technology Service. A spokesperson for the office did not immediately respond to a request for comment.
Bob Diachenko, a security researcher and owner of cybersecurity company Securitydiscovery.com, discovered the data in an open server as part of his normal monitoring work, he said in an interview.
"This is quite significant," he said, adding the campaign showed a "very creative approach to bruteforcing, with a multilayer password cracking architecture."
Diachenko said scripts discovered in the data included Russian-language instructions, suggesting the campaign may be the work of a Russian cybercrime group.
Reporting by Raphael Satter, Editing by Franklin Paul, Sanjeev Miglani and Lincoln Feast.
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Reporter covering cybersecurity, surveillance, and disinformation for Reuters. Work has included investigations into state-sponsored espionage, deepfake-driven propaganda, and mercenary hacking.
Cybersecurity correspondent covering cybercrime, nation-state threats, hacks, leaks and intelligence
