A Business at a Glance
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Fortinet, Inc.
FTNT
$116.7B
Mkt Cap
$152.37
+0.55%
Fortinet, Inc. (FTNT) has a current P/E ratio of 63.0, compared to its historical median P/E of 42.5. The stock is currently considered Expensive based on its historical valuation range.
Fortinet, Inc. (FTNT) has a 5-year average return on invested capital (ROIC) of 49.1%. This indicates strong capital allocation and a potential competitive advantage.
Fortinet, Inc. (FTNT) has a market capitalization of $111.8B. It is classified as a large-cap stock.
Fortinet, Inc. (FTNT) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.78%.
Based on historical P/E analysis, Fortinet, Inc. (FTNT) appears expensive. The current P/E of 63.0 is 48% above its historical median of 42.5. The estimated fair value CAGR (P/E method) is 34.2%.
Fortinet, Inc. (FTNT) operates in the Computer Peripheral Equipment, Nec industry, within the Technology sector.
Fortinet, Inc. (FTNT) reported annual revenue of $6.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Fortinet is a global cybersecurity leader that converges networking and security through its integrated Fortinet Security Fabric platform, serving enterprises, government organizations, and service providers across over 100 countries. The company operates through three solution pillars: Secure Networking (FortiGate firewalls, FortiSwitch switches, FortiAP wireless access points, and FortiExtender 5G connectivity gateways), Unified Secure Access Service Edge or SASE (single-vendor SASE with firewall, SD-WAN, secure web gateway, cloud access security broker, data loss prevention, and zero trust network access), and AI-Driven Security Operations or SecOps (FortiAnalyzer, FortiSIEM, FortiSOAR, FortiEndpoint, and managed detection and response services). Fortinet's competitive differentiation rests on proprietary core technologies including FortiOS (a unified operating system enabling convergence of networking and AI-powered security), FortiASIC (application-specific integrated circuits that accelerate security processing while reducing power consumption), FortiCloud (a private cloud SaaS platform), and FortiAI (dual-layered AI defense across the fabric). The company generates revenue through product sales (appliances, software, and cloud services) and recurring services including FortiGuard threat intelligence, FortiCare technical support, and managed security services, with a direct sales model complemented by channel partners. Fortinet's customers span financial services, retail, healthcare, operational technology, and critical infrastructure sectors, with a global support footprint and research and development centered in the United States and Canada.
【Strong demand and platform consolidation】 Management expects continued broad-based demand across all three solution pillars driven by the convergence of networking and security, rising customer investments in AI infrastructure security, and accelerating IT and OT convergence as organizations recognize growing exposure across critical infrastructure. The company anticipates a significant firewall refresh and upgrade cycle in the coming years, presenting strategic opportunities to expand footprint within existing customer environments and drive cross-sell across the broader portfolio including LAN, SD-WAN, SASE, and SecOps solutions. Services revenue growth is expected to accelerate in the second half of 2026, driven by strong product revenue growth as a leading indicator, with management confident in sustaining product revenue growth of 10%-15% over the midterm on average while continuing to achieve the Rule of 45 and outperforming overall market growth. The company remains committed to investments in innovation, go-to-market expansion including cloud delivery infrastructure and sales capacity, and maintaining gross margins through disciplined pricing strategies that balance component cost pressures with competitive positioning.
| Metric | Target | Period |
|---|---|---|
| Billings | $8.8 billion–$9.1 billion | FY2026 |
| Revenue | $7.71 billion–$7.87 billion | FY2026 |
| Non-GAAP gross margin | 79%–81% | FY2026 |
Billings (FY2026): “For the full year, we expect billings in the range of $8.8 billion-$9.1 billion, which at the midpoint represents growth of 18%.”
Revenue (FY2026): “Revenue in the range of $7.71 billion-$7.87 billion, which at the midpoint represents growth of 15%.”
Non-GAAP gross margin (FY2026): “Non-GAAP gross margin of 79%-81%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 7.1B | 6.8B | 6.0B | 5.3B | 4.4B | 3.3B |
| Net Income | 2.0B | 1.9B | 1.7B | 1.1B | 857M | 607M |
| EPS | $2.62 | $2.42 | $2.26 | $1.46 | $1.06 | $0.15 |
| Free Cash Flow | 2.4B | 2.2B | 1.9B | 1.7B | 1.4B | 1.2B |
| ROIC | 18.1% | 120.8% | 15.9% | 16.2% | 15.0% | 77.5% |
| Gross Margin | 80.3% | 51.5% | 53.0% | 76.7% | 75.4% | 76.6% |
| Debt/Equity | 0.50 | 0.86 | 0.72 | -2.31 | -3.86 | 1.35 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 2.2B | 2.1B | 1.8B | 1.2B | 970M | 650M |
| Operating Margin | 31.1% | 30.7% | 30.3% | 23.4% | 21.9% | 19.5% |
| ROE | 197.5% | 135.7% | 338.7% | -308.1% | 342.9% | 74.1% |
| Shares Outstanding | 734M | 766M | 772M | 786M | 809M | 4,156M |
Fortinet, Inc. passes 8 of 9 quality checks, indicating strong fundamentals.
Fortinet, Inc. trades at 63.0x trailing earnings, compared to its 15-year median P/E of 42.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 52.4x vs a median of 26.2x. The company's 5-year average ROIC is 49.1% with a gross margin of 66.6%. Total shareholder yield (buybacks) is 2.8%. At current prices, the estimated annualized return to fair value is +22.5%.
Fortinet, Inc. (FTNT) has a net profit margin of 27.3%. This is a strong margin indicating high profitability.
Fortinet, Inc. (FTNT) generated $2.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Fortinet, Inc. (FTNT) has a debt-to-equity ratio of 0.86. This indicates moderate leverage.
Fortinet, Inc. (FTNT) reported earnings per share (EPS) of $2.42 in its most recent fiscal year.
Fortinet, Inc. (FTNT) has a return on equity (ROE) of 135.7%. This indicates the company generates strong returns for shareholders.
Fortinet, Inc. (FTNT) has a 5-year average gross margin of 66.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for Fortinet, Inc. (FTNT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Fortinet, Inc. (FTNT) has a book value per share of $1.62, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued broad-based demand across all three solution pillars driven by the convergence of networking and security, rising customer investments in AI infrastructure security, and accelerating IT and OT convergence as organizations recognize growing exposure across critical infrastructure. The company anticipates a significant firewall refresh and upgrade cycle in the coming years, presenting strategic opportunities to expand footprint within existing customer environments and drive cross-sell across the broader portfolio including LAN, SD-WAN, SASE, and SecOps solutions. Services revenue growth is expected to accelerate in the second half of 2026, driven by strong product revenue growth as a leading indicator, with management confident in sustaining product revenue growth of 10%-15% over the midterm on average while continuing to achieve the Rule of 45 and outperforming overall market growth. The company remains committed to investments in innovation, go-to-market expansion including cloud delivery infrastructure and sales capacity, and maintaining gross margins through disciplined pricing strategies that balance component cost pressures with competitive positioning.
Based on recent SEC filings and earnings calls, Fortinet, Inc. (FTNT) has provided the following forward guidance: Billings: $8.8 billion–$9.1 billion (FY2026); Revenue: $7.71 billion–$7.87 billion (FY2026); Non-GAAP gross margin: 79%–81% (FY2026).