Fortinet Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Whoever buys today pays roughly 30 times earnings for the assumption that the firewall refresh cycle delivers what management promised — and gets one of the most profitable security companies in the world, with net cash and a prepaid subscription cushion. Whoever waits can check three data points in the coming quarterly reports (10-Q): product revenue and billings (does the refresh carry?), the operating margin (does the announced dip arrive as planned?), and the course of the class action. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
By its SEC filings, Fortinet is a genuine quality company: an 80 percent gross margin, net cash, a subscription cushion above $7 billion and a refresh cycle that measurably began in the first quarter of 2026 with 41 percent product growth. But no quality filter measures the three biggest risks: 55 percent of revenue flows through three distributors, a federal court is examining the communication of the very growth story that carries the stock, and management itself guides to falling margins for 2026 — while $8.51 billion of buybacks have nearly consumed the equity and turned every ROE-style metric into a distortion. Not investment advice.
Profitability & cash
Textbook quality: an 80.5 percent gross margin, a 30.7 percent operating margin and $1,853 million of net income in fiscal year 2025; free cash flow of $2,212 million, crossing $1 billion in a single quarter for the first time in Q1 2026 (10-K FY 2025, 10-Q as of 03/31/2026).
Growth & refresh cycle
Revenue +14 percent in 2025, +20 percent in Q1 2026 with product revenue +41 percent — the announced firewall refresh cycle delivers first hard evidence; billings re-accelerated to +16 percent after the sputtering year 2024 (+2 percent) (10-K FY 2025, 10-Q).
Distribution concentration
Three distributors stood for 55 percent of 2025 revenue, one distributor for 32 percent of net receivables, six for 67 percent — the business model's most critical bottleneck never surfaces in a quality metric (10-K FY 2025, Item 1A and Note 15).
Legal risk
The consolidated securities class action (In re Fortinet, Inc. Securities Litigation) litigates the communication of the "2026 firewall refresh cycle" — the central growth story; plus two derivative suits. Fortinet considers everything without merit, no accrual exists, the outcome is open (10-Q as of 03/31/2026, Note 10).
Balance sheet & valuation
Net cash of roughly $2.9 billion and $7.35 billion of prepaid subscriptions stand against nearly bought-away equity ($1.24 billion, accumulated deficit of $507.9 million) and a P/E around 30; for 2026, management itself guides to a lower operating margin (10-K FY 2025; data as of Q1 2026).
Worth Noting
FTNT reached the research list via rank 2 in the in-house Terry Smith quality scanner (U.S. selection, as of July 18, 2026); additionally a hit in the Altman-Z "balance-sheet fortress" filter. A quality scanner measures financial statements, not distribution structure, lawsuits or guidance — it never replaces the cross-check in the SEC filings.
Valuation figures are deliberately anchored evergreen: the price anchors are the average buyback prices Fortinet itself reported in the 10-K/10-Q ($76.68 to $77.95 between early 2026 and May 2026); P/E and P/S computed from TTM figures as of 03/31/2026. Analyses are evergreen, daily prices are not a buy argument.
Identity verified via EDGAR submissions (CIK 0001262039, Delaware, Nasdaq: FTNT, domestic filer 10-K/10-Q, no Form 15; the only former name is the styling variant "FORTINET INC" until May 2019). Fiscal year ends December 31.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at FTNT since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 75.20 $ to 172.80 $ · Last price: 172.60 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Software - Infrastructure
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Fortinet Inc FTNT | 124.2 | 61.8 | 39.6 | 80.2 | 31.3 | 14.2 | 115.0 |
| Microsoft Corporation MSFT | 3,632.6 | 30.8 | 17.6 | 67.9 | 46.3 | 14.9 | -1.6 |
| Oracle Corporation ORCL | 435.3 | 24.7 | 14.8 | 64.0 | 36.2 | 17.4 | -49.5 |
| Palantir Technologies Inc. PLTR | 432.5 | 199.0 | 147.5 | 84.8 | 46.2 | 56.2 | 4.7 |
| Palo Alto Networks Inc PANW | 305.7 | 302.6 | 194.0 | 70.4 | -2.5 | 14.9 | 84.7 |
| Crowdstrike Holdings Inc CRWD | 248.2 | – | 490.1 | 75.2 | -2.2 | 21.7 | 120.6 |
| Cloudflare Inc NET | 115.1 | – | 2,805.8 | 72.6 | -9.7 | 29.9 | 56.1 |
| Synopsys Inc SNPS | 73.0 | 77.0 | 22.3 | 82.9 | 10.4 | 15.1 | -10.4 |
| Block, Inc XYZ | 46.0 | 58.5 | 12.0 | 46.6 | -2.6 | 0.3 | 1.1 |
| Median of companies shown | 248.2 | 61.8 | 39.6 | 72.6 | 10.4 | 15.1 | 4.7 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 1,275 | 43 | 32 | 0.04 | 346 | 838 | 2,140 |
| 2017 | 1,495 | 110 | 31 | 0.04 | 594 | 589 | 2,258 |
| 2018 | 1,805 | 234 | 335 | 0.38 | 639 | 1,010 | 3,078 |
| 2019 | 2,163 | 351 | 332 | 0.38 | 808 | 1,342 | 3,879 |
| 2020 | 2,594 | 532 | 489 | 0.58 | 1,084 | 856 | 4,045 |
| 2021 | 3,342 | 650 | 607 | 0.73 | 1,500 | 798 | 5,919 |
| 2022 | 4,417 | 970 | 857 | 1.06 | 1,731 | -282 | 6,228 |
| 2023 | 5,305 | 1,241 | 1,148 | 1.46 | 1,936 | -463 | 7,259 |
| 2024 | 5,956 | 1,803 | 1,745 | 2.26 | 2,258 | 1,494 | 9,763 |
| 2025 | 6,800 | 2,082 | 1,853 | 2.48 | 2,591 | 1,238 | 10,389 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.68 | 68.60 | 1,660 | 17.30 | 31.70 | 478 | 380 |
| 2025: Q1 | 0.56 | 43.60 | 1,540 | 13.80 | 28.10 | 863 | 797 |
| 2025: Q2 | 0.57 | 15.10 | 1,630 | 13.60 | 27.00 | 452 | 284 |
| 2025: Q3 | 0.62 | -12.00 | 1,725 | 14.40 | 27.50 | 655 | 568 |
| 2025: Q4 | 0.68 | -0.30 | 1,905 | 14.80 | 26.60 | 620 | 577 |
| 2026: Q1 | 0.72 | 29.00 | 1,850 | 20.10 | 28.90 | 1,077 | 1,007 |
| 2026: Q2 | 0.82 | 43.90 | 2,048 | 25.60 | 29.60 | 1,044 | 966 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 4 of our scanner strategies — each hit links to the scanner.
Backtested Scanners
Growth
Quality & Balance Sheet
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 3.45 | 3.41 – 3.62 | 8,119 | 25.0% | 41 |
| 12/31/2027 | 3.78 | 3.23 – 4.55 | 9,041 | 9.5% | 42 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 17.1% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $3.12B |
|---|---|
| Market cap | $124.23B |
| Free cash flow in year ten | $15.10B |
| Terminal value as a share of market value | 64.0% |
For comparison: over the past five years free cash flow grew by 18.4% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Fortinet verkauft KI-gestützte Sicherheitsprodukte als dokumentierte Umsatzquelle: Die FortiGuard-Sicherheitsabos — laut 10-K eine Suite „AI-powered security capabilities“, deren Bedrohungsdaten FortiGuard Labs per KI auswertet — stellen historisch einen wesentlichen Teil des Umsatzes (Service-Umsatz GJ 2025: 4,58 Mrd. US-Dollar von 6,80 Mrd. gesamt). Dazu vermarktet das 10-K die eigenständige Produktfamilie FortiAI (FortiAI-Assist mit generativer und agentischer KI, FortiAI-Protect, FortiAI-SecureAI) im Produktkapitel Item 1. Vorrang-Regel: verkauft vor nutzt.
View the full file — quotes, sources, reviewed filings
„Using millions of global network sensors, FortiGuard Labs monitors the worldwide attack surface and employs AI to mine that data for new threats. FortiGuard and Other Security Services are a suite of AI-powered security capabilities that are natively integrated as part of the Fortinet Security Fabric to deliver coordinated detection and enforcement across the entire attack surface."
Mit Millionen globaler Netzwerksensoren überwacht FortiGuard Labs die weltweite Angriffsfläche und setzt KI ein, um aus diesen Daten neue Bedrohungen zu gewinnen. FortiGuard and Other Security Services sind eine Suite KI-gestützter Sicherheitsfunktionen, die nativ in die Fortinet Security Fabric integriert sind, um koordinierte Erkennung und Durchsetzung über die gesamte Angriffsfläche zu liefern.
10-K · 2026-02-25 · View SEC filing
„FortiAI provides a dual-layered defense across the Fortinet Security Fabric through the AI for Security and Security for AI framework."
FortiAI bietet eine zweischichtige Verteidigung über die gesamte Fortinet Security Fabric hinweg — über das Rahmenwerk „AI for Security“ und „Security for AI“.
10-K · 2026-02-25 · View SEC filing
„Within AI for Security, FortiAI-Assist uses generative and agentic AI to support Network Operations Center (“NOC”) and Security Operations Center (“SOC”) teams in monitoring, analysis and response activities across enterprise environments."
Innerhalb von „AI for Security“ nutzt FortiAI-Assist generative und agentische KI, um Teams im Network Operations Center („NOC“) und Security Operations Center („SOC“) bei Überwachung, Analyse und Reaktion in Unternehmensumgebungen zu unterstützen.
10-K · 2026-02-25 · View SEC filing
„Our FortiGuard and other security subscriptions and FortiCare technical support services revenue has historically accounted for a significant percentage of our total revenue."
Die Umsätze aus unseren FortiGuard- und anderen Sicherheitsabonnements sowie den technischen FortiCare-Supportdiensten machten historisch einen erheblichen Anteil unseres Gesamtumsatzes aus.
10-K · 2026-02-25 · View SEC filing
Filings Reviewed: 10-Q 2026-05-08 · 10-Q 2025-11-07 · 10-Q 2025-08-08 · 10-Q 2025-05-08 · 10-K 2026-02-25 · 10-K 2025-02-21
Rated on July 18, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 15.5%
- More than 10% revenue growth is expected for the coming year 10.6%
- Share count grows by less than 3% a year -2.4%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 46.9%
- Gross margin at 40% or higher and without meaningful erosion 80.8%
- Goodwill from acquisitions does not grow faster than revenue 2.5%
- Net debt below twice EBITDA 2,586 m net cash
- Operating cash flow covers the profits of the last three years 2,038 m
- Return on capital at 15% or higher, or up versus two years ago 38.9%
- Insiders hold at least 10% or are net buyers 17.4%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
10/10 Quality stockThe AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 20.4%
- Exp. sales growth 3Y > 5% 15.3%
- EBIT growth 10Y > 5% 53.9%
- Exp. EBIT growth 3Y > 5% 23.5%
- Net debt < 4x EBIT -1.2x
- EBIT positive, 10Y straight 10
- Max. EBIT decline < 50% 0.0%
- Return on equity > 15% 209.9%
- ROCE > 15% 38.9%
- Expected return > 10% 25.7%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 15, 2026 | Whittle John | CHIEF OPERATING OFFICER | Sell | 2,835 | 168.74 | 478,378 |
| Sep 15, 2026 | Whittle John | CHIEF OPERATING OFFICER | Other | 2,835 | 62.11 | 176,082 |
| Sep 14, 2026 | Whittle John | CHIEF OPERATING OFFICER | Sell | 1,158 | 166.02 | 192,248 |
| Sep 14, 2026 | Whittle John | CHIEF OPERATING OFFICER | Sell | 52,707 | 165.43 | 8,719,182 |
| Sep 14, 2026 | Whittle John | CHIEF OPERATING OFFICER | Other | 53,865 | 62.11 | 3,345,555 |
| Aug 4, 2026 | Ohlgart Christiane | Chief Financial Officer | Sell | 387 | 164.59 | 63,696 |
| Aug 3, 2026 | Xie Ken | PRESIDENT & CEO | Sell | 162 | 164.49 | 26,647 |
| Aug 3, 2026 | Xie Ken | PRESIDENT & CEO | Sell | 47,943 | 163.91 | 7,858,337 |
| Aug 3, 2026 | Xie Ken | PRESIDENT & CEO | Sell | 67,971 | 163.08 | 11,084,853 |
| Aug 3, 2026 | Xie Ken | PRESIDENT & CEO | Sell | 7,350 | 161.82 | 1,189,378 |
The company
About the Company
Fortinet, Inc. bietet weltweit Cybersicherheits- und konvergierte Netzwerk- und Sicherheitslösungen an.
- CEO Insider Trades (12 Mo.)
- selling own stock
- Employees
- 15,472
- Headquarters
- Sunnyvale, CA
- Address
- 909 Kifer Road, 94086 Sunnyvale, United States
- Phone
- 408 235 7700
- Website
- fortinet.com
- IPO Date
- 11/18/2009
- ISIN
- US34959E1091
- Stock Split
- 5:1 on 06/23/2022
- Stock Split
- 2:1 on 06/02/2011
Management
| Name | Title | Birth Year |
|---|---|---|
| Ken Xie | Co-Founder, Chairman & CEO | 1963 |
| Michael Xie | Co-Founder, President, CTO & Director | 1969 |
| Christiane Ohlgart | Chief Accounting Officer, CFO and Principal Financial & Accounting Officer | 1968 |
| John Whittle J.D. | Chief Operating Officer | 1969 |
| Anthony Luscri | Vice President of Investor Relations | – |
| Anthony James | Executive Vice President of Marketing | – |
| Robert May | Executive Vice President of Technology & Product Management | – |
| Joe Sarno | Executive Vice President of International Sales | – |
| Carl Windsor | Chief Information Security Officer | – |
| Trevor Pagliara | Executive Vice President of US Sales | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 07/29/2026 Fortinet, Inc. (FTNT): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.