Fortinet (NASDAQ:FTNT) Announces Earnings Results, Beats Estimates By $0.07 EPS

Fortinet (NASDAQ:FTNT) announced its quarterly earnings results on Thursday. The software maker reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.74 by $0.07, FiscalAI reports. Fortinet had a return on equity of 118.27% and a net margin of 28.58%.The firm had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.86 billion. 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 Price Performance

Shares of NASDAQ FTNT traded down $2.19 during midday trading on Thursday, reaching $78.93. The company’s stock had a trading volume of 12,671,872 shares, compared to its average volume of 6,860,309. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.94 and a current ratio of 1.03. The company has a market cap of $58.70 billion, a P/E ratio of 32.48, a P/E/G ratio of 2.74 and a beta of 1.06. The business’s 50 day moving average price is $80.37 and its two-hundred day moving average price is $83.08. Fortinet has a fifty-two week low of $70.12 and a fifty-two week high of $114.82.

Insiders Place Their Bets

In other news, CEO Ken Xie sold 175,737 shares of the stock in a transaction 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 sale, the chief executive officer directly owned 51,396,385 shares of the company’s stock, valued at approximately $4,184,693,666.70. This represents a 0.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Michael Xie sold 343,106 shares of the business’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $81.42, for a total value of $27,935,690.52. Following the completion of the transaction, the vice president directly owned 10,210,282 shares of the company’s stock, valued at approximately $831,321,160.44. This trade represents a 3.25% decrease in their position. The SEC filing for this sale provides additional information. 17.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Fortinet

Several hedge funds have recently bought and sold shares of FTNT. Invesco Ltd. lifted its holdings in shares of Fortinet by 17.0% during the 3rd quarter. Invesco Ltd. now owns 10,816,519 shares of the software maker’s stock worth $909,453,000 after acquiring an additional 1,568,337 shares during the period. Two Sigma Investments LP raised its position in Fortinet by 229.3% during the third quarter. Two Sigma Investments LP now owns 1,323,411 shares of the software maker’s stock valued at $111,272,000 after purchasing an additional 921,480 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in Fortinet by 16.0% during the second quarter. Ameriprise Financial Inc. now owns 4,190,449 shares of the software maker’s stock worth $437,022,000 after purchasing an additional 577,248 shares during the last quarter. State Street Corp boosted its holdings in shares of Fortinet by 1.6% in the 3rd quarter. State Street Corp now owns 29,660,558 shares of the software maker’s stock valued at $2,493,860,000 after purchasing an additional 477,397 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of Fortinet by 59.1% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,201,925 shares of the software maker’s stock valued at $101,058,000 after purchasing an additional 446,536 shares in the last quarter. 83.71% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several brokerages have issued reports on FTNT. JPMorgan Chase & Co. cut their price target on Fortinet from $75.00 to $72.00 and set an “underweight” rating for the company in a report on Friday, January 30th. Morgan Stanley reiterated an “underweight” rating and issued a $70.00 price objective (up from $66.00) on shares of Fortinet in a report on Thursday, December 18th. Barclays set a $88.00 target price on shares of Fortinet in a research note on Tuesday. UBS Group reduced their target price on shares of Fortinet from $90.00 to $80.00 and set a “neutral” rating for the company in a report on Thursday, November 6th. Finally, Daiwa Capital Markets cut Fortinet from an “outperform” rating to a “neutral” rating and set a $86.00 price target for the company. in a report on Wednesday, November 12th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twenty-four have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $90.48.

Fortinet News Summary

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Raised FY‑2026 guidance: management raised full‑year EPS to $2.94–$3.00 vs. consensus ~2.79 and guided revenue to $7.5B–$7.7B, which signals confidence in recurring revenue and deals. Press Release
• Positive Sentiment: Q4 results beat: EPS $0.81 vs. $0.74 est and revenue $1.91B vs. $1.86B est; strong billings growth (18%) and unified SASE billings +40% highlight healthy product/recurring mix and margin expansion. FinancialPost: Q4 Results
• Neutral Sentiment: Q1‑2026 guide: EPS $0.59–$0.63 (consensus ~0.62) and revenue $1.7B–$1.8B — guidance broadly in line but slightly wide, so execution on Q1 bookings/billings will be watched. Slide Deck
• Neutral Sentiment: Broker tone mixed: Jefferies flagged a modest Q4 beat but remained cautious on 2026, underlining that upside will depend on large AI/data‑center deals and execution. Yahoo/Jefferies
• Negative Sentiment: Insider selling: CEO Ken Xie sold 175,737 shares and VP Michael Xie sold 343,106 shares (~$14.3M and ~$27.9M respectively), which can weigh on sentiment despite their remaining large holdings. Ken Xie SEC Filing Michael Xie SEC Filing
• Negative Sentiment: Analyst downgrades and reassessments of 2026 growth (including Scotiabank/others) have trimmed appetite for FTNT, prompting some near‑term selling. Analyst Reassessment
• Negative Sentiment: Market reaction: coverage notes the stock slipped after downgrades, showing sentiment can outweigh fundamentals in the near term. Seeking Alpha: Slip After Downgrade

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.