olivLaw · US equity research
FTNT FTNT
Computer Peripheral Equipment, NEC · SIC 3577 · Vertical: Computer Peripheral Equipment, NEC (SIC 3577)
Fortinet (FTNT) is a global cybersecurity company promoting the convergence of networking and security, with total revenue of 6.80 billion USD in fiscal 2025. In the second quarter of 2026 revenue grew 26 percent to 2.05 billion USD, and the company raised its 2026 revenue growth guidance to 19 percent. The financial picture is supported by demand for its integrated platform, but it also depends on the firewall refresh cycle and component supply.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 03 Nov 2026, FTNT (FTNT) stock was 128.11 USD (+1.51% on the day), with market capitalisation 94.1 bn USD, P/E 41.6 on diluted EPS of 3.08 USD over the last 12 months, beta 1.19, 52-week range 75.23–194.75 USD. Latest reported quarter (Q3 2026): revenue of 2.1 bn USD (+20.5% YoY), net income of 635.5 m USD (+34.1% YoY), diluted EPS 0.86 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 25.4
- oversold (≤ 30)
- Bollinger (20, 2)
- 129.44 – 213.89
- below the lower band · %B -0.02 · band width 49.2%
- SMA 50 / 200
- 170.32 / 128.90
- mixed trend
- MACD (12, 26, 9)
- -9.93 / -3.29
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −29.2% | −2.0% | −27.2 pp | — |
| 3 months | −23.9% | −2.2% | −21.7 pp | — |
| 6 months | +42.5% | +4.3% | +38.2 pp | — |
| Year to date | +61.3% | +10.6% | +50.8 pp | — |
| 1 year | +46.4% | +10.5% | +35.9 pp | −19.1% |
| 3 years | +153.8% | +73.7% | +80.1 pp | −13.3% |
| 5 years | +89.3% | +61.7% | +27.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 1.5 bn | 1.6 bn | 1.7 bn | 1.9 bn | 1.8 bn | 2.0 bn | 2.1 bn |
| Cost of revenue | 314.5 m | 293.1 m | 314.9 m | 331.7 m | 389.2 m | 364.5 m | 404.7 m | 437.5 m |
| Gross profit | 1.3 bn | 1.2 bn | 1.3 bn | 1.4 bn | 1.5 bn | 1.5 bn | 1.6 bn | 1.6 bn |
| Research & development | 191.1 m | 198.6 m | 209.5 m | 202.4 m | 205.0 m | 214.0 m | 225.0 m | 213.4 m |
| Operating income | 574.1 m | 453.8 m | 458.0 m | 547.3 m | 625.6 m | 580.0 m | 689.3 m | 704.3 m |
| Depreciation & amortisation | 35.2 m | 35.8 m | 38.3 m | 38.4 m | 39.5 m | 39.8 m | 41.4 m ≈ | 39.4 m ≈ |
| Interest expense | 4.9 m | 4.9 m | 4.6 m | 6.2 m | 4.4 m | 4.2 m | 3.2 m | 3.0 m |
| Pre-tax income | 618.4 m | 519.3 m | 517.3 m | 594.8 m | 650.8 m | 656.6 m | 720.2 m | 755.0 m |
| Income tax | 86.7 m | 96.5 m | 77.1 m | 120.7 m | 144.8 m | 122.0 m | 115.0 m | 119.5 m |
| Net income | 526.2 m | 433.4 m | 440.1 m | 473.9 m | 506.0 m | 534.5 m | 606.3 m | 635.5 m |
| Diluted EPS | 0.68 ≈ | 0.56 | 0.57 | 0.62 | 0.68 ≈ | 0.72 | 0.82 | 0.86 |
| Operating cash flow | 477.6 m | 863.3 m | 451.9 m ≈ | 655.2 m ≈ | 620.2 m | 1.1 bn | 1.0 bn ≈ | 946.0 m ≈ |
| Capex | 97.6 m | 66.5 m | 167.8 m | 87.7 m | 42.8 m | 70.6 m | 78.0 m ≈ | 64.2 m ≈ |
| Share repurchases | 0 | 0 | 401.1 m ≈ | 1.8 bn ≈ | 57.2 m | 823.0 m | 149.8 m ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 59 percentile of its own 44-quarter history (min 6.7, median 37.4, max 287.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 2.2 bn | 2.6 bn | 3.3 bn | 4.4 bn | 5.3 bn | 6.0 bn | 6.8 bn |
| Revenue YoY | +20.7% | +19.9% | +19.9% | +28.8% | +32.2% | +20.1% | +12.3% | +14.2% |
| Net income | 334.9 m | 331.7 m | 488.5 m | 606.8 m | 857.3 m | 1.1 bn | 1.7 bn | 1.9 bn |
| Net income YoY | +966.6% | −1.0% | +47.3% | +24.2% | +41.3% | +33.9% | +52.0% | +6.2% |
| Diluted EPS | 1.92 | 1.90 | 0.58 | 0.73 | 1.06 | 1.46 | 2.26 | 2.42 |
| Diluted EPS YoY | +966.7% | −1.0% | −69.5% | +25.9% | +45.2% | +37.7% | +54.8% | +7.1% |
| net % | 18.6% | 15.3% | 18.8% | 18.2% | 19.4% | 21.6% | 29.3% | 27.3% |
| Free cash flow | 585.9 m | 715.8 m | 957.8 m | 1.2 bn | 1.4 bn | 1.7 bn | 1.9 bn | 2.2 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.5 bn USD
- Financial debt
- 996.3 m USD
- Net debt
- -1.5 bn USD
- Equity
- 1.2 bn USD
- Total assets
- 10.4 bn USD
- Debt / equity
- 0.81x
- Current ratio
- 1.17x
- ROE
- 135.7%
- ROA
- 18.4%
- FCF margin
- 32.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.6 bn | 3.3 bn | 4.4 bn | 5.3 bn | 6.0 bn | 6.8 bn | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 570.0 m | 783.0 m | 1.1 bn | 1.2 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 2.0 bn | 2.6 bn | 3.3 bn | 4.1 bn | 4.8 bn | 5.5 bn | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 341.4 m | 424.2 m | 512.4 m | 613.8 m | 716.8 m | 815.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | 531.8 m | 650.4 m | 969.6 m | 1.2 bn | 1.8 bn | 2.1 bn | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 68.8 m | 84.4 m | 104.3 m | 113.4 m | 122.8 m | 152.0 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | 600.6 m ≈ | 734.8 m ≈ | 1.1 bn ≈ | 1.4 bn ≈ | 1.9 bn ≈ | 2.2 bn ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 0 | 14.9 m | 18.0 m | 21.0 m | 20.0 m | 20.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | 541.7 m | 628.4 m | 955.5 m | 1.3 bn | 2.1 bn | 2.3 bn | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | 53.2 m | 14.1 m | 30.8 m | 143.8 m | 283.9 m | 439.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | 488.5 m | 606.8 m | 857.3 m | 1.1 bn | 1.7 bn | 1.9 bn | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | 0.58 | 0.73 | 1.06 | 1.46 | 2.26 | 2.42 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 838.3 m | 835.3 m | 805.3 m | 788.2 m | 771.9 m | 764.6 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.1 bn | 1.3 bn | 1.7 bn | 1.4 bn | 2.9 bn | 2.5 bn | SEC (XBRL)· 25 Feb 2026verified |
| Receivables | 720.0 m | 807.7 m | 1.3 bn | 1.4 bn | 1.5 bn | 1.7 bn | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 139.8 m | 175.8 m | 264.6 m | 484.8 m | 315.5 m | 399.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 2.7 bn | 3.6 bn | 3.8 bn | 4.4 bn | 6.0 bn | 5.9 bn | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 448.0 m | 687.6 m | 898.5 m | 1.0 bn | 1.3 bn | 1.6 bn | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | 93.0 m | 125.1 m | 128.0 m | 126.5 m | 235.4 m | 257.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 31.6 m | 63.6 m | 56.0 m | 35.3 m | 115.0 m | 97.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 4.0 bn | 5.9 bn | 6.2 bn | 7.3 bn | 9.8 bn | 10.4 bn | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 141.6 m | 148.4 m | 243.4 m | 204.3 m | 190.9 m | 230.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Short-term debt | 0 | — | — | — | 0 | 499.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Long-term debt | 0 | 988.4 m | 990.4 m | 992.3 m | 994.3 m | 496.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 1.8 bn | 2.3 bn | 3.1 bn | 3.7 bn | 4.1 bn | 5.0 bn | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 3.2 bn | 5.1 bn | 6.5 bn | 7.7 bn | 8.3 bn | 9.2 bn | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 856.0 m | 798.4 m | -281.6 m | -463.4 m | 1.5 bn | 1.2 bn | SEC (XBRL)· 08 May 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.1 bn | 1.5 bn | 1.7 bn | 1.9 bn | 2.3 bn | 2.6 bn | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 125.9 m | 295.9 m | 281.2 m | 204.1 m | 378.9 m | 364.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 957.8 m ≈ | 1.2 bn ≈ | 1.4 bn ≈ | 1.7 bn ≈ | 1.9 bn ≈ | 2.2 bn ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | -72.8 m | -1.3 bn | 763.9 m | -649.3 m | -727.4 m | -599.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | -1.2 bn | 82.8 m | -2.1 bn | -1.6 bn | -50.1 m | -2.4 bn | SEC (XBRL)· 25 Feb 2026verified |
| Share repurchases | 1.1 bn | 741.8 m | 2.0 bn | 1.5 bn | 600.0 k | 2.3 bn | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 64 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
03 Nov 2026Source: olivLaw, closing series
Market cap: 94.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation31
- Returns52
- Quality100
- Balance sheet68
- Growth63
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 13.71 – 122.63 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)81.85 – 122.63 (Mid 97.76)WACC 9.3% · starting FCFF 3.4 bn USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 28.9%
- Peers: EV/Sales13.71 – 46.54 (Mid 16.57)5 companies used · median multiple 1.1x · quartiles 0.9x – 3.9xCRSR, EVLV, MITK, MYND, XRX
- Peers: EV/EBITDAunavailable · not enough peers
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 64/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 79.7% | 99 (on a fixed band) | 11% |
| EBIT margin · Quality | 33.0% | 100 (vs peers) | 9% |
| FCF margin · Quality | 43.5% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 15.5% | 62 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 14.2% | 65 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -1.2x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.4x | 35 (on a fixed band) | 6% |
| EV/Sales · Valuation | 11.5x | 0 (vs peers) | 17% |
| FCF yield · Valuation | 3.6% | 73 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 1.1% | 52 (on a fixed band) | 4% |
Score groups
- Balance sheet68/100 · 2/2 factors with a value
- Growth63/100 · 2/2 factors with a value
- Quality100/100 · 3/3 factors with a value
- Returns52/100 · 1/1 factors with a value
- Valuation31/100 · 2/2 factors with a value
Memo
FORTINET, INC. (FTNT). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 6.8 bn USD in 2025; YoY growth 14.2%; net margin 29.0%; ROE 153.1%; net debt/EBITDA -1.2x.
The estimated value range is 47.78–84.59 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 57.16 USD, the price of 128.11 USD leaves a potential of -55.4% (value / price − 1) and a margin of safety of -124.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 64/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 79.7%
- EBIT margin: 33.0%
- FCF margin: 43.5%
- Net debt / EBITDA: -1.2x
- FCF yield: 3.6%
What contradicts it
- EV/Sales: 11.5x
- The price is above the estimated value range
- The valuation methods diverge
Versus the vertical median
Computer Peripheral Equipment, NEC (SIC 3577) · same industry (4-digit SIC) · compared with 17 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| PANWPalo Alto Networks, Inc. | 286.5 bn | 875.5 | 1.7% | 2.7% | +24.5% | +84% / +137% |
| FTNTFortinet, Inc. | 94.1 bn | 41.6 | 153.1% | 29.0% | +14.2% | +46% / +154% |
| LOGILogitech International S.A. | 13.2 bn | 16.7 | 38.2% | 16.4% | +6.3% | −18% / +6% |
| CRSRCorsair Gaming, Inc. | 1.3 bn | 38.2 | 5.8% | 2.5% | +11.9% | +89% / −5% |
| EVLVEvolv Technologies Holdings, Inc. | 838.6 m | — | -4.9% | -3.0% | +40.5% | −28% / +16% |
| MITKMitek Systems, Inc. | 817.6 m | 38.6 | 9.2% | 11.4% | +4.4% | +105% / +60% |
| SSYSStratasys Ltd. | 601.0 m | — | -12.7% | -18.9% | −3.7% | −21% / −37% |
| IMMRImmersion Corporation | 235.8 m | 21.4 | 3.5% | 0.6% | +11.2% | −0% / +10% |
| RDCMRadcom Ltd. | 167.4 m | 14.2 | 11.4% | 16.8% | +17.2% | −23% / +28% |
| XRXXerox Holdings Corp | 160.2 m | — | -128.0% | -11.9% | +12.9% | −56% / −91% |
| MYNDMynd.ai, Inc. | 144.5 m | — | -995.5% | -32.2% | −37.2% | −50% / −97% |
| INVEInve Technologies, Inc. | 64.2 m | — | -10.9% | -62.9% | −19.3% | −21% / −62% |
| LINKInterlink Electronics, Inc | 55.1 m | — | -10.5% | -7.9% | +1.8% | −3% / −36% |
| TACTTransact Technologies Inc | 54.4 m | — | -1.3% | -0.8% | +18.7% | +19% / −22% |
| WETHWetouch Technology Inc. | 12.0 m | 1.3 | 6.0% | 17.6% | +6.8% | −55% / unavailable |
| AIMDAinos, Inc. | 4.6 m | — | -196.3% | -106,283.3% | +499.0% | −70% / −96% |
| VTIXVirtuix Holdings Inc. | — | — | — | -543.2% | +18.4% | unavailable / unavailable |
| YIBOPlanet Image International Limited | — | — | -14.4% | -5.3% | +3.6% | −1% / unavailable |
1- and 3-year price returns: for FTNT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 84.53 Total return -34% · Per year -34% | 148.76 Total return 16% · Per year 16% | 223.14 Total return 74% · Per year 74% |
| 3 years | 100.27 Total return -22% · Per year -8% | 196.73 Total return 54% · Per year 15% | 321.32 Total return 151% · Per year 36% |
| 5 years | 118.93 Total return -7% · Per year -1% | 260.18 Total return 103% · Per year 15% | 462.70 Total return 261% · Per year 29% |
- Exit P/E± 49.18
- Net margin± 34.43
- Annual revenue growth± 25.68
- Annual dilution± 2.89
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (28 Oct 2026 · results).
In brief
Fortinet (FTNT) is a global cybersecurity company promoting the convergence of networking and security, with total revenue of 6.80 billion USD in fiscal 2025 1. In the second quarter of 2026 revenue grew 26 percent to 2.05 billion USD, and the company raised its 2026 revenue growth guidance to 19 percent 3. The financial picture is supported by demand for its integrated platform, but it also depends on the firewall refresh cycle and component supply.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Volatility of resultsmedium
Quarterly results can vary a lot due to order timing, inventory and economic conditions, which could lead to missing analyst expectations 1.
- Supply chainhigh
Shortages of components, including memory chips, could delay deliveries and affect margins 21.
- Tariffs and geopolitical tensionshigh
Changes in trade policy and regional conflicts could raise manufacturing costs and limit access to certain markets 1.
- Product vulnerabilitiesmedium
A critical defect or breach in a security product could cause reputational damage and litigation 1.
- Dependence on distribution partnersmedium
Financial difficulties or consolidation among distributors could disrupt the sales channel 1.
Investment thesis
What would need to be true (bull case)
- Accelerated growth in products and billings in the second quarter of 2026, combined with raised guidance, could support continued expansion if demand stays solid 3.
- The integrated platform and proprietary processors could give a lasting advantage with customers consolidating their security vendors 1.
- A firewall refresh cycle could bring additional revenue from existing accounts if customers choose to extend the portfolio 1.
What would break the thesis
- Geopolitical tensions and dependence on manufacturing in Taiwan could affect deliveries and margins if disruptions intensify 1.
- Competition from newer and established vendors could reduce prices and slow the acquisition of new customers 1.
- Quarterly volatility and high fixed expenses could make a revenue decline weigh heavily on results 1.
What to watch
- Delivery of revenue guidance for the third quarter of 2026Q3 2026
- Development of billings and backlog against the annual guidance2026
- Customer adoption of the FortiSOC and SASE Firewall platforms2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (28 Oct 2026 · results).
The business
Fortinet structures its offering around the Fortinet Security Fabric, an integrated platform combining secure networking, unified SASE and AI-driven security operations 1. In fiscal 2025 the company generated total revenue of 6.80 billion USD and net income of 1.85 billion USD 1. Products run on the FortiOS operating system and on proprietary FortiASIC processors, and end-customers are located in over 100 countries 1.
The distribution model has two tiers: Fortinet sells to distributors that supply resellers, service providers and MSSPs, while large customers are sold to directly 1. Hardware manufacturing is outsourced to contract manufacturers, with a high share located in Taiwan 1. The company notes that a significant firewall refresh cycle could expand its footprint in existing customer environments 1.
In the second quarter of 2026 product revenue grew 52 percent and billings grew 33 percent, indicating faster growth in appliance sales relative to services 3. The company launched FortiSOC, a cloud-delivered SOC platform, and the FortiGate 1200G with FortiSASE Outpost, products aimed at strengthening its position in the SASE Firewall market 3.
Segments
Secure Networking
This segment is built on FortiOS and FortiGate, which can be deployed in branches, campuses, data centers and the cloud, with proprietary ASIC processors accelerating inspection of encrypted traffic 1. The range also includes FortiSwitch switches and FortiAP access points, extending security to the ethernet layer 1.
Unified SASE
The solution combines firewall, SD-WAN, secure web gateway, ZTNA and DLP in a single operating system and a cloud-centric architecture, supported by a network of over 190 PoPs 1. The company also offers a Sovereign SASE variant that can be deployed within the customer's own infrastructure 1.
AI-Driven Security Operations
The portfolio is centred on FortiAnalyzer, a SOC platform with SIEM, SOAR and XDR functions, complemented by FortiSIEM, FortiSOAR and managed FortiGuard services 1. The launch of FortiSOC in the second quarter of 2026 extends this line toward a cloud-delivered platform 3.
Market context
Fortinet's management estimates that demand for secure networking will overtake the pure networking market by 2030 1. The market is driven by a growing threat landscape, a shortage of security skills, and the trend of consolidating disparate tools into a single platform 1.
The company anticipates a significant firewall refresh cycle in the coming years, which could generate additional revenue if customers choose to extend the integrated platform 1. Guidance for the third quarter of 2026 calls for revenue between 2.010 and 2.100 billion USD 3.
Trends
- Convergence of networking and securitytailwind
Customers increasingly prefer integrated platforms over point products, which favours Fortinet's offering if the trend continues 1.
- Firewall refresh cycletailwind
The company expects a wave of upgrades that could expand the business in existing accounts, but its duration and intensity are uncertain 1.
- Tariffs and geopolitical tensionsheadwind
Tariffs, tensions between China and Taiwan and supply chain disruptions could affect costs and deliveries, given the majority of hardware is made in Taiwan 1.
- Adoption of AI and cloudmixed
Demand for protecting AI infrastructure and for cloud delivery opens opportunities but requires rapid adaptation, and subscription-based models can change the structure of revenue 12.
Competitive position
The cybersecurity market is fragmented, and Fortinet competes with newer technology providers, established security vendors and networking equipment vendors that extend their offerings 1. Price pressure and refresh cycles can intensify competition 1.
The analysed sources do not name competitors, so the assessment of competitive position relies on the company's statements about product differentiation and the price pressure mentioned in its risk factors 1.
- Newer network security technology providers
Newer companies can win customers who choose specialised solutions over integrated platforms, as warned in the risk factors 1.
- Established security companies
Larger and more established vendors can attract customers through reputation and broad portfolios 1.
- Networking equipment vendors
Major networking producers can offer integrated security and cause customers to concentrate purchases 1.
- SASE and SD-WAN providers
Competition in SASE and SD-WAN intensifies as customers move from SD-WAN to single-vendor platforms 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- This cybersecurity stock just had a huge pullback. How to buy the dip like a proCNBC — Top News · 02 Nov 2026 · EN
- Уолл-стрит снизилась в четверг вслед за акциями AlphabetInterfax Russia (RU) · 30 Oct 2026 · RU
- There's a cybersecurity stock on Josh Brown's list that's pulling back. How he's trading itCNBC — Top News · 29 Oct 2026 · EN
- Acțiunile SAP, Fortinet și ServiceNow au scăzut pe fondul temerilor legate de AI - www.goldring.roSurge — Google News · 29 Oct 2026 · RO
- Software stocks slide as Fortinet, ServiceNow fail to meet lofty investor expectationsCNA (Channel NewsAsia) · 29 Oct 2026 · EN
- Fortinet’s stock is taking a dive after earnings. Here’s why.MarketWatch — Top Stories · 28 Oct 2026 · EN
- Stocks making the biggest moves after hours: Alphabet, Microsoft, Chipotle, ServiceNow, Fortinet & moreCNBC — Top News · 28 Oct 2026 · EN
- Exploited Fortinet Bug Linked to Stealthy FortiGate Implant in Telecom HackSecurityWeek · 19 Oct 2026 · EN
- Citrix, Fortinet, Ivanti Patch 29 Vulnerabilities Across Their ProductsSecurityWeek · 14 Oct 2026 · EN
- FortiBleed Attackers Locking Victims Out of Fortinet DevicesSecurityWeek · 08 Oct 2026 · EN
- FBI Warns FortiBleed Remains Active After Amassing 86,644 Fortinet Device CredentialsThe Hacker News · 07 Oct 2026 · EN
- ALERTĂ: Vulnerabilitate critică la nivelul Fortinet FortiMailCERT-RO · 02 Oct 2026 · RO
- Fortinet sounds the alarm over actively exploited FortiMail zero-dayThe Register · 02 Oct 2026 · EN
- Exploited Fortinet FortiMail Zero-Day Calls for Urgent ActionSecurityWeek · 02 Oct 2026 · EN
- Fortinet warns of critical FortiMail flaw exploited in zero-day attacksBleepingComputer · 01 Oct 2026 · EN
- Silviu Cârstea, director executiv al RSC, compania din spatele sistemului Hipocrate, la doi ani şi jumătate de la atacul asupra spitalelor: Au căzut şi spitale cu Windows, antivirus şi Fortinet actualizate la zi. „Sigur, ajută să fie la zi, dar nu este suficient”Ziarul Financiar · 21 Sept 2026 · RO
- Why Fortinet Stock Zoomed Almost 9% Higher This WeekYahoo Finance — News · 18 Sept 2026 · EN
- Cybersecurity Stock Fortinet Forms Rare Pattern, Flirts With Buy PointYahoo Finance — News · 18 Sept 2026 · EN
- Thai Broadband Provider Hacked via Fortinet VulnerabilitySecurityWeek · 15 Sept 2026 · EN
- CISA Flags Exploited Cisco, Citrix, Fortinet Flaws, Sets Sept. 12 Federal Patch DeadlineThe Hacker News · 10 Sept 2026 · EN
SEC filings
- Quarterly report30 Oct 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report16 Jun 2026Shareholder vote
- Quarterly report08 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Proxy statement29 Apr 2026
- Annual report25 Feb 2026
- Current report05 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / FTNT · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / FTNT · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / FTNT · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.