Fortinet (FTNT)

Information Technology · $90.0B market cap · SEC CIK 0001262039

Next reports on Feb 3, 2027, after the close, with analysts expecting $0.96 in earnings per share.

52-week range $73.55 to $197.13. 37% below its 52-week high and 68% above its low.

The case for FTNT

• Revenue up 20.2% on the year.
• Generated $2.2B of free cash flow in FY2025, 33% of revenue.
• Earns 152% on shareholder equity, a figure flattered by a small equity base.
• 29% of revenue drops through to net profit.
• Holds more cash ($2.5B) than long-term debt ($497M).
• Earnings per share up 26.5%.

The case against

• Priced at 58× book value. Very little hard asset backing here.
• Weakest against its peers: price/sales of 11.4× is higher than 76% of Information Technology companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from Fortinet's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Fortinet says it does

Overview Fortinet is a leader in cybersecurity, driving the convergence of networking and security. Our mission is to secure people, devices and data everywhere. Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge (“SASE”) and artificial intelligence (“AI”)-driven security operations (“SecOps”). As of December 31, 2025, our end-customers were located in over 100 countries and included enterprises across a wide variety of market verticals, including financial services, retail, healthcare and operational technology (“OT”) market verticals, communication and security service providers, and government organizations. As a global company headquartered in Sunnyvale, California, our research and development is centered in the United States and Canada with a global footprint of support and centers of excellence around the world. As of December 31, 2025, we held 1,064 U.S. patents…

Risk factors FTNT lists in its 10-K

• Our operating results are likely to vary significantly and be unpredictable
• Our real estate investments, including construction, acquisition, development or leasing of new data centers, data center expansions or office buildings, could involve significant risks to our business
• We are dependent on the continued services and performance of our senior management, the loss of any of whom could adversely affect our business, operating results and financial condition
• Reliance on a concentration of shipments at the end of the quarter or changes in shipping terms could cause our billings and revenue to fall below expected levels
• We face intense competition in our market and we may not maintain or improve our competitive position
• If we are unable to hire, retain and motivate qualified personnel, our business will suffer
• We have incurred indebtedness and may incur other debt in the future, which may adversely affect our financial condition and future financial results
• We generate a majority of revenue from sales to distributors, resellers and end-customers outside of the United States, and we are therefore subject to a number of risks associated with international sales and operations
• If we are not successful in continuing to execute our strategy to increase our sales to large- and medium-sized end-customers, our results of operations may suffer
• If we do not increase the effectiveness of our sales organization, we may have difficulty adding new end-customers or increasing sales to our existing end-customers and our business may be adversely affected
• Unless we continue to develop better market awareness of our company and our products, and to improve lead generation and sales enablement, our revenue may not continue to grow
• Some of our sales are to government organizations, which subjects us to a number of regulatory requirements, their own supply chain constraints and contractual requirements, challenges and risks
• If our new products, services and enhancements do not achieve sufficient market acceptance, our results of operations and competitive position will suffer
• Demand for our products may be limited by market perception that individual products from one vendor that provide multiple layers of security protection in one product are inferior to point products from multiple vendors
• The sales prices of our products and services may decrease, which may reduce our gross profits and operating margin and may adversely impact our financial results and the trading price of our common stock
• Our uniform resource locator (“URL”) database for our web filtering service may fail to keep pace with the rapid growth of URLs and may not categorize websites in accordance with our end-customers
• False positive detection of legitimate non-malicious files as viruses or malware or false identification of legitimate emails as spam, could adversely affect our business
• Our business is subject to the risks of warranty claims, product returns, product liability and product defects
• If the availability of our cloud-based subscription services does not meet our service-level commitments to our customers, our current and future revenue may be negatively impacted
• If we do not appropriately manage any future growth, including through the expansion of our real estate facilities, or are unable to improve our systems, processes and controls, our operating results will be negatively affected
• We may experience difficulties maintaining and expanding our internal business management systems
• We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results
• The use of AI technology in our IT infrastructure could improve internal process but poses security and privacy risks
• Our proprietary rights may be difficult to enforce and we may be subject to claims by others that we infringe their propriety technology
• Our products contain third-party open-source software components, and failure to comply with the terms of the underlying open-source software licenses could restrict our ability to sell our products or result in loss of IP
• Claims by others that we infringe their proprietary technology or other litigation matters could harm our business
• We rely on the availability of third-party licenses
• Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose end-customers or negatively impact our ability to contract
• We are currently, and may in the future become, involved in litigation that may adversely affect us
• We are subject to governmental export and import controls that could subject us to liability or restrictions on sales, and that could impair our ability to compete in international markets
• If we fail to comply with environmental requirements, our business, financial condition, operating results and reputation could be adversely affected
• Investors’ expectations of our performance relating to corporate responsibility and sustainability factors may impose additional costs and expose us to new risks
• We are exposed to fluctuations in currency exchange rates, which could negatively affect our financial condition and results of operations
• We could be subject to changes in our tax rates, the adoption of new U.S. or international tax legislation, exposure to additional tax liabilities or impacts from the timing of tax payments
• Forecasting our estimated annual effective tax rate is complex and subject to uncertainty, and there may be material differences between our forecasted and actual tax rates
• The trading price of our common stock may be volatile, which may be exacerbated by share repurchases under our Share Repurchase Program
• Anti-takeover provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt
• Political instability, changes in trade policies and agreements and conflicts could adversely affect our business and financial performance
• Changes in financial accounting standards may cause adverse unexpected fluctuations and affect our reported results of operations

Filings

Other Information Technology companies