Fortinet Inc

Fortinet Inc

FTNT

Get informed when a big investor buys or sells

+ Follow
Market Cap$101.08B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Fortinet IncFortinet Inc52.2-197%16.34.3

Earnings Call Q1 2026

May 6, 2026 - AI Summary

Strong Q1’26 results beating guidance (good): - Billings: +$31% YoY to $2.09B (exceeded high end of guidance). - Total revenue: +$20% YoY to $1.85B. - Product revenue: +$41% YoY to $645M (mix shift toward higher-performance products; pricing changes low single-digit impact). - Operating margins: Non-GAAP 35.8% (record/above guidance); GAAP 31.4%. - EPS: GAAP EPS +29% YoY, Non-GAAP EPS +41% YoY. - Cash flow / capital returns: Record free cash flow $1.01B (adjusted FCF $1.07B). Share repurchases: 10.6M shares for $827M in Q1; additional ~1.9M shares for $146M through quarter-to-date.
Demand drivers: AI + convergence + OT security + security operations (good/opportunity): - Secure networking billings +32% YoY (FortiGate demand; customers expanding protection into OT). - OT security billings +70%+ YoY (customers prioritizing critical infrastructure protection amid elevated ransomware/nation-state activity; attributed to Fortinet’s leadership in OT). - Unified SASE billings +31% YoY driven by SD-WAN and FortiSASE; 18% of large enterprise customers bought FortiSASE (+45% increase). - AI-driven security operations billings +23% YoY (more than 20 AI-enabled solutions; consolidation/vendor simplification within SecOps). - Management emphasized FortiOS as a single operating system and FortiASIC + direct supply chain model as key differentiators (performance/cost + supply execution).
Guidance raised / outlook cautious-but-up (forecast; mixed): - Q2’26 (raised): - Billings: $2.09B–$2.19B (~+20% YoY at midpoint) - Revenue: $1.83B–$1.93B (~+15% YoY at midpoint) - Non-GAAP gross margin: 79.5%–80.5%; non-GAAP op margin: 33%–35% - Non-GAAP EPS: $0.72–$0.76 - Full-year’26 (raised): - Billings: $8.8B–$9.1B (~+18% YoY at midpoint) - Revenue: $7.71B–$7.87B (~+15% YoY) - Service revenue: $5.09B–$5.15B (~+12% YoY) - Non-GAAP op margin: 33%–36%; Non-GAAP EPS: $3.10–$3.16 - Forward-looking view on services: expects services revenue to pick up in H2, with conversion lag since billings/deferred revenue/ARR lead services revenue.

Exclusive for Stockcircle Pro members

Sign upSign Up
$97.29

Target Price by Analysts

33.6% downsideFortinet Target Price DetailsTarget Price
$81.02

Current Fair Value

44.7% downside

Overvalued by 44.7% based on the discounted cash flow analysis.

Share Statistics

Market cap$101.08 Billion
Enterprise Value$103.08 Billion
Dividend Yield$- (-)
Earnings per Share$2.44
Beta0.92
Outstanding Shares738,800,000

Return

Return on Equity197.48%ROE
Return on Assets19.78%
Return on Invested Capital43.85%

Valuation & Multiples

P/E Ratio52.15P/E Ratio
PEG223.57PEG
Price to Sales16.28Price to Sales
Price to Book Ratio146.48Price to Book Ratio
Enterprise Value to Revenue14.5
Enterprise Value to EBIT44.69
Enterprise Value to Net Income52
Total Debt to Enterprise0.04
Debt to Equity4.27Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 6, 2026
EPS Estimate
$0.62
Average shareholder expectation
Revenue Estimate
$1.73 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 5, 2026
EPS Estimate
$0.74
Average shareholder expectation
Revenue Estimate
$1.89 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.3624▲ 9.71%
Total Calls5,811,950▼ 5.98%
Total Puts7,918,032▲ 1.23%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %64.22%▼ 0.53%
Total Invested$38.95B▼ 0.73%
Investors Holding1,378▼ 21.00%

ESG Score

No data

About Fortinet Inc

CEO: Ken Xie

Relevant Senate Committees

Appropriations

This committee directly allocates discretionary federal spending. Its subcommittees determine the precise funding for defense programs, scientific research, and various federal agencies, directly influencing the budget available for cybersecurity procurement and research, a major revenue source for Fortinet.

Armed Services

This committee oversees the Department of Defense and authorizes the annual NDAA, which includes significant funding for cybersecurity initiatives, R&D, and procurement for military technologies. The DoD is a critical customer segment for Fortinet.

Select Committee on Intelligence

Members receive classified briefings on global threats, including cyber warfare and espionage. This provides direct, non-public material information about the threat landscape, which is the primary driver of demand and government spending in the cybersecurity sector, directly impacting Fortinet.

Commerce, Science, and Transportation

With broad jurisdiction over interstate commerce, the FCC, and FTC, this committee directly impacts 'Big Tech' through privacy and data security laws (e.g., data breach notification). These regulations significantly shape the operational environment and demand for cybersecurity solutions like those offered by Fortinet.

Homeland Security and Governmental Affairs

This committee oversees federal procurement and the Department of Homeland Security, which are major consumers of cybersecurity services. Its focus on government efficiency and emerging risks like AI in financial markets directly relates to Fortinet's products and services for government and critical infrastructure protection.