Fortinet Inc

Fortinet Inc

FTNT

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Market Cap$117.13B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Fortinet IncFortinet Inc55.8-137%16.12.8

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.

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$145.55

Target Price by Analysts

9.5% downsideFortinet Target Price DetailsTarget Price
$66.11

Current Fair Value

58.9% downside

Overvalued by 58.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$117.13 Billion
Enterprise Value$118.53 Billion
Dividend Yield$- (-)
Earnings per Share$2.44
Beta1.09
Outstanding Shares735,900,000

Return

Return on Equity136.72%ROE
Return on Assets19.53%
Return on Invested Capital41.99%

Valuation & Multiples

P/E Ratio55.82P/E Ratio
PEG147.81PEG
Price to Sales16.08Price to Sales
Price to Book Ratio80.42Price to Book Ratio
Enterprise Value to Revenue15.75
Enterprise Value to EBIT46.9
Enterprise Value to Net Income55
Total Debt to Enterprise0.04
Debt to Equity2.8Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

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

Next Earnings Call

Expected Date
November 4, 2026
EPS Estimate
$0.85
Average shareholder expectation
Revenue Estimate
$2.06 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.9672 39.52%
Total Calls387,400 93.33%
Total Puts374,700 95.27%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %21.55% 43.92%
Total Invested$24.36B 38.29%
Investors Holding940 451.00%

ESG Score

No data

About Fortinet Inc

CEO: Ken Xie