Fortinet, Inc.
FTNT
$0.00
+1.70%
Fortinet, Inc. is a platform-based cybersecurity vendor operating in the Software - Infrastructure industry. It is a leading provider of integrated security solutions, serving over 800,000 customers globally with a focus on network security, cloud security, and zero-trust access.
FTNT
Fortinet, Inc.
$0.00
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Investment Opinion: Should I buy FTNT Today?
Based on a synthesis of the provided data, Fortinet warrants a Hold rating. The company's underlying fundamentals are exceptionally strong, with impressive growth, profitability, and financial health. However, the stock's valuation, while improved from its peak, remains demanding. The current price does not present a clear margin of safety, and the mixed analyst sentiment suggests a 'wait-and-see' approach is prudent until there is greater clarity on the sustainability of its growth trajectory or a more attractive entry point emerges.
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FTNT 12-Month Price Forecast
The investment case is balanced. The exceptional quality of the business is undeniable, but it is fully priced into the stock. The near-term path will depend on the company's ability to meet lofty growth expectations in a challenging environment.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Fortinet, Inc.'s 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
13 analysts
Implied Upside
—
vs. current price
Analyst Count
13
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analyst coverage for Fortinet is active, with 13 analysts providing estimates. The consensus estimated EPS for the upcoming period is $3.29, with a range from $3.17 to $3.38. Estimated average revenue is approximately $11.87 billion. Recent institutional ratings show a mix of opinions, including actions such as 'Hold', 'Market Perform', 'Outperform', and 'Underperform', indicating a lack of strong consensus on the near-term direction.
Bulls vs Bears: FTNT Investment Factors
Fortinet presents a classic growth-at-a-price scenario. Its fundamental business performance is outstanding, with strong revenue growth, exceptional margins, and cash generation. However, the stock's valuation remains elevated despite a significant price correction from its highs, reflecting investor concerns about future growth sustainability and competitive pressures.
Bullish
- Strong Revenue Growth: Q4 2025 revenue grew 14.75% YoY, indicating robust demand.
- Exceptional Profitability Margins: Gross margin of 80.8% and net margin of 27.3% show pricing power.
- Solid Financial Health: Strong free cash flow of $2.23B and moderate D/E of 0.81.
- Cybersecurity Market Tailwinds: News highlights multi-billion dollar post-quantum migration opportunity.
Bearish
- Elevated Valuation Multiples: Forward P/E of 24.7 and P/S of 8.7 are high, demanding growth.
- Recent Price Weakness: Stock down 5.3% over 6 months and 15.1% over 1 year.
- High PEG Ratio: PEG ratio of 4.54 suggests growth is expensive relative to earnings.
- Lack of Analyst Consensus: Mixed ratings (Hold, Outperform, Underperform) indicate uncertainty.
FTNT Technical Analysis
The stock has exhibited significant volatility over the past six months, with the price declining from $86.29 on October 2, 2025, to a closing low of $75.23 on February 24, 2026, before partially recovering to $81.72 by March 31, 2026. This represents a 6-month decline of 5.3%. In the short term, the stock has shown relative strength, gaining 3.4% over the past month and 2.9% over the past three months, outperforming the broader market (SPY) which declined 5.25% and 4.63% over the same periods, respectively. The current price of $81.72 positions the stock near the middle of its 52-week range of $70.12 to $109.33, approximately 29.7% above the low and 25.2% below the high. The stock's beta of 1.04 indicates its volatility is slightly higher than the market. No RSI data was provided for a current momentum assessment.
Beta
1.00
1.00x market volatility
Max Drawdown
-31.6%
Largest decline past year
52-Week Range
$70-$109
Price range past year
Annual Return
-15.9%
Cumulative gain past year
| Period | FTNT Return | S&P 500 |
|---|---|---|
| 1m | +1.8% | -4.3% |
| 3m | +6.0% | -4.0% |
| 6m | -3.8% | -2.0% |
| 1y | -15.9% | +22.2% |
| ytd | +6.0% | -3.8% |
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FTNT Fundamental Analysis
Revenue growth remains robust, with Q4 2025 revenue of $1.905 billion representing a 14.75% year-over-year increase from Q4 2024. Profitability metrics are strong, with a net margin of 27.26% and an operating margin of 30.62%. The company's gross margin is exceptionally high at 80.84%, indicating strong pricing power and cost control. Financial health is solid, with a debt-to-equity ratio of 0.81, suggesting a moderate level of leverage. The current ratio of 1.17 indicates sufficient short-term liquidity. Cash flow generation is a key strength, with trailing twelve-month free cash flow of $2.23 billion, providing ample financial flexibility. Operational efficiency is highlighted by a very high return on equity (ROE) of 149.77% and a return on assets (ROA) of 12.87%. These figures indicate highly effective use of shareholder capital and company assets to generate profits.
Quarterly Revenue
$1.9B
2025-12
Revenue YoY Growth
+0.14%
YoY Comparison
Gross Margin
+0.79%
Latest Quarter
Free Cash Flow
$2.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is FTNT Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. Fortinet's trailing P/E ratio is 31.84, while its forward P/E is 24.70, based on estimated future earnings. The Price-to-Sales (P/S) ratio is 8.68, and the Enterprise Value-to-Sales (EV/Sales) is 8.52. A direct peer comparison using industry average valuation multiples is not available in the provided data. The forward P/E of 24.7 suggests the market is pricing in future earnings growth, which is supported by the company's high profitability margins and strong revenue growth trajectory.
PE
31.8x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 27x~99x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.3x
Enterprise Value Multiple
Investment Risk Disclosure
Fortinet's primary risks stem from its high valuation and execution challenges in a competitive market. The forward P/E of 24.7 and P/S of 8.7 bake in significant future growth, leaving the stock vulnerable to multiple compression if growth decelerates or earnings disappoint. The high PEG ratio of 4.54 is a particular red flag, indicating the market is paying a premium for expected growth. Competitive intensity in cybersecurity is fierce, with rivals like CrowdStrike also posting strong results, which could pressure market share and pricing power. Financial and operational risks appear moderate. The company's debt-to-equity ratio of 0.81 is manageable, and its strong free cash flow provides a buffer. However, the stock's beta of 1.04 and recent high short interest (short ratio of 3.06) point to potential for continued volatility. Macroeconomic headwinds could also lead enterprises to delay cybersecurity spending, impacting the top-line growth that justifies the current valuation. The lack of a strong analyst consensus further underscores the uncertainty surrounding near-term performance.
FAQ
The primary risk is valuation compression if growth slows. The stock's high multiples (P/E, P/S, PEG) leave little room for error. Competitive pressures in cybersecurity are intense, and any market share loss could impact growth. Furthermore, the stock exhibits volatility (beta of 1.04) and has high short interest (short ratio 3.06), which can exacerbate price swings. Macroeconomic softness affecting IT budgets is another key risk.
The 12-month outlook is mixed with a neutral base case. The base case (50% probability) sees the stock trading between $85 and $95, driven by meeting analyst EPS estimates of $3.29. The bull case (30%) could see a re-test of highs near $109 on exceptional execution, while the bear case (20%) risks a fall towards the 52-week low of $70 if growth disappoints. The consensus view is for moderate upside with high volatility.
FTNT appears fairly valued to slightly overvalued based on traditional metrics. Its trailing P/E of 31.8 is high, though the forward P/E of 24.7 reflects expected earnings growth. The Price-to-Sales ratio of 8.7 is also elevated. While the stock is down significantly from its 52-week high of $109.33, the current price of $81.72 does not yet signal clear undervaluation given the growth assumptions required to support these multiples.
FTNT is a high-quality stock, but its attractiveness as a buy is tempered by its valuation. The company boasts excellent fundamentals, including 14.75% revenue growth and an 80.8% gross margin. However, with a forward P/E of 24.7 and a high PEG ratio of 4.54, the stock is pricing in near-perfect execution. For new money, a 'Hold' rating is more appropriate until a more compelling entry point emerges.
FTNT is more suitable for a long-term investment horizon. The company's strong platform, customer base, and critical role in cybersecurity support a durable growth story. However, short-term trading is challenged by the stock's volatility and the lack of a clear near-term catalyst given its fair valuation. Long-term investors can better weather the volatility and benefit from the company's underlying fundamental strength.