Fortinet (FTNT)
Information Technology · $126B market cap · SEC CIK 0001262039
fundamentals score out of 100
Next reports on Nov 3, 2026, after the close, with analysts expecting $0.87 in earnings per share.
The case for FTNT
- Generated $2.2B of free cash flow in FY2025, 33% of revenue.
- Earns 188% on shareholder equity, a figure flattered by a small equity base.
- 28% of revenue drops through to net profit.
- Holds more cash ($2.5B) than long-term debt ($497M).
- Revenue growing 18.8% year over year.
- Has compounded revenue at 21.3% a year over five years.
The case against
- Very expensive at 59.6× earnings. Years of growth are already in the price.
- Priced at 16.8× sales, which leaves no room for a stumble.
- Priced at 73× book value. Very little hard asset backing here.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 17 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 74 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 86 |
| Momentumhow the price has behaved lately | 92 |
| Stabilityhow violently it moves, what it owes and what it pays you | 74 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 59.6× |
|---|---|
| Price / book | 72.56× |
| Price / sales | 16.8× |
| Revenue growth (YoY) | +18.8% |
| EPS growth (YoY) | +13.3% |
| Gross margin | 80% |
| Operating margin | 32% |
| Net margin | 28% |
| Return on equity | 188% |
| Debt / equity | 0.32× |
| Current ratio | 1.28 |
| Dividend yield | none |
| Beta | 1.01 |
| 52-week range | $73.55 – $176.10 |
| Position in that range | 98% of the way up |
| 3-month return | +21.1% |
| 1-year return | +108.1% |
Five years of financials, as filed
Pulled from Fortinet's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $6.8B | $6.0B | $5.3B | $4.4B | $3.3B |
| Gross profit | $5.5B | $4.8B | $4.1B | $3.3B | $2.6B |
| Operating income | $2.1B | $1.8B | $1.2B | $970M | $650M |
| Net income | $1.9B | $1.7B | $1.1B | $857M | $607M |
| Operating cash flow | $2.6B | $2.3B | $1.9B | $1.7B | $1.5B |
| Capital expenditure | $365M | $379M | $204M | $281M | $296M |
| Total assets | $10.4B | $9.8B | $7.3B | $6.2B | $5.9B |
| Total liabilities | $9.2B | $8.3B | $7.7B | $6.5B | $5.1B |
| Shareholder equity | $1.2B | $1.5B | -$463M | -$282M | $782M |
| Cash | $2.5B | $2.9B | $1.4B | $1.7B | $1.3B |
| Long-term debt | $497M | $994M | $992M | $990M | $988M |
| Free cash flow | $2.2B | $1.9B | $1.7B | $1.4B | $1.2B |
| Gross margin | 80.5% | 80.6% | 76.7% | 75.4% | 76.6% |
| Operating margin | 30.7% | 30.3% | 23.4% | 21.9% | 19.5% |
| Net margin | 27.3% | 29.3% | 21.6% | 19.4% | 18.2% |
| Diluted shares | 765M | 772M | 788M | 805M | 835M |
Share count is down 8.5% over 4 years. Buybacks have been shrinking the pie.
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
- Risks Related to Our Business and Financial Position
- 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
- Risks Related to Our Sales and End-Customers
- 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