Fortinet (NASDAQ:FTNT) Announces Quarterly Earnings Results

Fortinet (NASDAQ:FTNT) posted its quarterly earnings results on Thursday. The software maker reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.74 by $0.07, FiscalAI reports. The business had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.86 billion. Fortinet had a return on equity of 117.39% and a net margin of 27.26%.Fortinet’s revenue for the quarter was up 14.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.74 earnings per share. Fortinet updated its Q1 2026 guidance to 0.590-0.630 EPS and its FY 2026 guidance to 2.940-3.000 EPS.

Here are the key takeaways from Fortinet’s conference call:

• Fortinet reported a strong quarter and year: Q4 billings +18%, revenue +15%, product revenue +20%, operating margin ~37%, record free cash flow of $2.21B for 2025 and an expanded $1.4B repurchase authorization remaining.
• Unified SASE is a major growth driver—billings +40%, FortiSASE ARR up >90%, now 27% of billings—supported by FortiOS single‑OS integration, sovereign SASE positioning, and FortiCloud cost advantage that management says widens total addressable market.
• Product refresh, AI and OT demand fueled product revenue (20% YoY) and notable large deals—OT billings +25% and AI/SecOps ARR +21%—plus strategic partnerships (e.g., NVIDIA BlueField‑3) to secure AI infrastructure.
• Management reaffirmed midterm targets and 2026 guidance (2026 billings $8.4–$8.6B, revenue $7.5–$7.7B), expects to sustain 10–15% midterm product growth and continue delivering the “Rule of 45,” while investing $350–$450M in infrastructure.
• Supply‑chain and cost pressures remain a risk: memory exposure (estimated ~10–20% of BOM) prompted planned appliance price increases of roughly 5–20% in affected SKUs, and FX could create modest headwinds to near‑term results.

Fortinet Trading Up 4.9%

NASDAQ:FTNT opened at $82.76 on Friday. Fortinet has a one year low of $70.12 and a one year high of $114.82. The company’s 50-day simple moving average is $80.37 and its 200 day simple moving average is $82.88. The firm has a market capitalization of $61.54 billion, a P/E ratio of 34.06, a PEG ratio of 2.73 and a beta of 1.06. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.03 and a quick ratio of 0.94.

Wall Street Analyst Weigh In

FTNT has been the subject of several recent analyst reports. Barclays set a $88.00 price objective on Fortinet in a research report on Tuesday. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $83.00 price target on shares of Fortinet in a report on Friday. Morgan Stanley reissued an “underweight” rating and set a $70.00 price objective (up previously from $66.00) on shares of Fortinet in a report on Thursday, December 18th. Oppenheimer reaffirmed a “market perform” rating on shares of Fortinet in a report on Friday, January 23rd. Finally, HSBC cut Fortinet from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty-three have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $89.46.

Insider Activity

In related news, CEO Ken Xie sold 175,737 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $81.42, for a total transaction of $14,308,506.54. Following the completion of the transaction, the chief executive officer directly owned 51,396,385 shares in the company, valued at approximately $4,184,693,666.70. The trade was a 0.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Michael Xie sold 343,106 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $81.42, for a total transaction of $27,935,690.52. Following the sale, the vice president owned 10,210,282 shares in the company, valued at approximately $831,321,160.44. The trade was a 3.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Fortinet

Institutional investors and hedge funds have recently modified their holdings of the stock. Bison Wealth LLC bought a new position in shares of Fortinet during the fourth quarter worth $585,000. Brighton Jones LLC lifted its holdings in shares of Fortinet by 2.2% in the 4th quarter. Brighton Jones LLC now owns 10,327 shares of the software maker’s stock worth $976,000 after acquiring an additional 221 shares during the last quarter. PharVision Advisers LLC bought a new position in Fortinet during the 3rd quarter valued at about $202,000. Alyeska Investment Group L.P. purchased a new stake in Fortinet in the 3rd quarter worth about $234,000. Finally, Scientech Research LLC purchased a new position in shares of Fortinet during the third quarter valued at approximately $320,000. Institutional investors own 83.71% of the company’s stock.

Trending Headlines about Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Q4 beat and raised full‑year guidance — Fortinet reported Q4 revenue of $1.91B and EPS of $0.81 (above estimates) and issued FY‑2026 EPS guidance ahead of consensus; management highlighted strong enterprise demand. Read More.
• Positive Sentiment: Billings, product growth and Unified SASE strength — Billings rose ~18% (Unified SASE billings up ~40%) and product revenue grew double digits, underpinning revenue momentum. Read More.
• Positive Sentiment: Buyback expanded — company increased its buyback program by $1B to roughly $10.25B through Feb 2027, a shareholder‑friendly move that supports the stock. Read More.
• Positive Sentiment: Some bullish analyst action — Rosenblatt raised its target to $105 (buy), and Wedbush reaffirmed an outperform with a $90 target, giving upside voices amid mixed comments. Read More. • Read More.
• Neutral Sentiment: Primary disclosures and management commentary — full earnings call transcript and presentation are available for deeper read on cloud/SASE strategy and guidance detail. Read More. • Read More.
• Negative Sentiment: Analyst caution still present — JPMorgan and Mizuho raised price targets slightly but kept underweight/outperform/underperform stances that imply limited near‑term upside from some shops; Jefferies also remains cautious on 2026. Read More. • Read More. • Read More.
• Negative Sentiment: Insider selling — filings show large sales by the CEO and a VP, which may raise short‑term governance/flow concerns for some investors. Read More. • Read More.
• Neutral Sentiment: Street positioning mixed — some firms (Robert W. Baird, others) keep holds or reiterate neutral stances citing product strength offset by services slowdown or limited near‑term upside. Read More.

Fortinet Company Profile

Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.

Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.