Fortinet, Inc. (FTNT) AI Stock Analysis

Fortinet, Inc. is a cybersecurity provider offering automated protection across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. Its flagship FortiGate platform integrates hardware and software licenses for firewall, intrusion prevention, anti-malware, VPN, application control, web filtering, and WAN acceleration. The company also offers FortiSwitch, FortiAP, FortiExtender, and FortiAnalyzer for centralized logging. Additional solutions include FortiWeb, FortiMail, FortiSandbox, FortiClient endpoint protection, FortiToken, FortiAuthenticator, and FortiEDR/XDR. Fortinet serves industries such as telecommunications, government, financial services, education, retail, manufacturing, and healthcare through channel partners and direct sales.

Fortinet increased annual revenue from $3.34B in FY2021 to $6.80B in FY2025, reflecting a 5-year revenue CAGR of 21.3% from FY2020 to FY2025. Annual net income grew from $606.8M in FY2021 to $1.85B in FY2025, while gross margin expanded from 76.6% to 80.8%. Operating margin also improved steadily, rising from 19.5% in FY2021 to 30.6% in FY2025. Over the trailing twelve months, revenue reached $7.53B with an operating margin of 33.6% and net margin of 28.2%. In the latest quarter ended June 30, 2026, quarterly revenue grew 25.6% year-over-year, and quarterly earnings grew 43.9% year-over-year, supported by diluted EPS of $2.83 over the trailing twelve months.

As of June 30, 2026, Fortinet held $4.07B in cash and short-term investments against total debt of $496.9M, resulting in net cash of $3.57B. The company recorded a current ratio of 1.28, total assets of $10.86B, shareholders' equity of $1.55B, and a debt-to-equity ratio of 0.32. Cash generation remains solid, with operating cash flow reaching $2.59B and free cash flow totaling $2.23B in FY2025. Capital expenditures absorbed $364.8M that year, while share buybacks totaled $2.29B, contributing to an 11.2% reduction in share count over 5 years.

Fortinet trades at a trailing P/E of 59.8x and a forward P/E of 45.0x, above the median of its Nasdaq-100 Technology peers of 42.1x and 25.1x, respectively. Its price-to-sales multiple of 16.5x and EV/EBITDA of 44.4x also exceed peer medians of 11.9x and 30.6x. The stock closed at $169.13 on October 16, 2026, which is 36.5% above its 200-day average and within its 52-week range of $73.55 to $197.13. Fortinet shares gained 103.4% over the past year and 168.2% over five years, outpacing the S&P 500 benchmark returns of 16.8% and 83.0% over the same intervals.

Wall Street coverage includes 8 Strong Buy, 1 Buy, 30 Hold, 2 Sell, and 3 Strong Sell recommendations. The mean price target is $167.91, which is 0.7% below the last close of $169.13. For the fiscal year ending December 31, 2026, analysts estimate revenue of $8.12B and EPS of $3.45, reflecting 25.1% earnings growth. For the following fiscal year, 43 analysts project revenue of $9.03B and EPS of $3.78. Fortinet has topped EPS estimates in each of the last 4 quarters and is scheduled to report earnings next on October 28, 2026.

This page is an AI-written research summary of Fortinet, Inc. (FTNT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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