Fortinet, Inc. (FTNT)

Price—Loading quote

AI: Overvalued

Price checkThe observed price looks expensive because it assumes years of exceptional growth.

A timestamped August 7 quote showed $161.12, close to the verified July 31 close of $161.95; the newer quote came from a third-party post, so price precision is a caveat. Using 733.6 million June shares gives a $118.2 billion market value. Trailing free cash flow—cash left after running and investing in the business—was about $3.12 billion, making the price roughly 38 times that cash. Management's 2026 adjusted earnings guidance implies about 47 times earnings. That leaves little room for a normal slowdown, supporting an overvalued verdict.

Big pictureFortinet is growing quickly, but the latest hardware surge may not last.

Revenue grew from $2.59 billion in 2020 to $6.80 billion in 2025, about 21% yearly, while net income rose even faster. First-half 2026 revenue increased 23% and operating income 39%. The mix matters: second-quarter product revenue jumped 52%, but service revenue rose a steadier 14%. Subscriptions and support should make cash more durable, while appliances face customer replacement cycles. The bull case is a lasting product refresh that produces years of service sales; the bear case is growth normalizing after the refresh.

Business strengthHigh cash generation and a strong balance sheet give Fortinet unusual financial resilience.

First-half 2026 free cash flow reached $1.97 billion, up from $1.08 billion a year earlier. June net cash was $2.44 billion, and current assets exceeded current liabilities by $1.37 billion, providing downside protection. Fortinet spent $972.8 million on buybacks during the half while recording $151.8 million of employee share compensation; shares fell from 743.0 million at year-end to 733.6 million. That is genuine dilution control, although repurchasing heavily near 38 times trailing cash flow can weaken future returns.

What could change the storySustained fast growth would justify the price, while a hardware slowdown would expose it.

One rough cash-flow model, using a 9% annual return demanded by investors and 3% long-run growth, gives about $147 per share if cash grows 15% for five years then 8%, versus $176 under 18% then 10%. The $161 quote therefore needs results nearer the optimistic path. Continued product growth above 20%, service growth around 15%, and stable mid-30% operating margins would strengthen the case. Product growth below 10%, weaker renewals after security incidents, or poorly timed buybacks would make the valuation harder to defend.

$161.12 price considered

AI: News

Growth and guidance surgeSecond-quarter growth beat expectations, and higher guidance lifted the near-term earnings outlook.

On July 29, Fortinet reported second-quarter revenue of $2.05 billion, up 26%; product revenue rose 52%, and billings—customer charges that can become future revenue—rose 33%. Reported operating margin reached 34%. It raised 2026 revenue guidance to $8.02-$8.18 billion from $7.71-$7.87 billion. The stock rose nearly 10% before July 30 trading, but closed only 0.7% higher after reaching $169.26. The early move was linked to results; the faded gain suggests investors questioned whether the product surge would persist.

Intel chip partnershipThe Intel partnership could strengthen Fortinet's custom chips and supply chain, but lacks a timetable.

On July 21, Intel and Fortinet announced joint development of the sixth-generation Fortinet Security Processor. Intel will contribute design, packaging, and manufacturing, potentially improving firewall performance and diversifying supply. No cost, launch date, or expected sales contribution was disclosed, so the value impact remains uncertain. FTNT closed 1.4% lower that day; timing alone does not show the partnership caused the decline. Commercial evidence would include faster launches, more profit per device, or market-share gains.

FortiBleed credential campaignA massive credential campaign raised trust risks, though Fortinet said no new flaw caused it.

From June 18-22, government and security reports described a campaign exposing credentials for more than 70,000 FortiGate devices; one report counted over 86,000 across 194 countries. Fortinet said attackers reused old credentials and brute-forced weak accounts without two-step verification, rather than exploiting a new flaw. The shares rose 0.4% on June 18, but that timing cannot establish attribution. The material risk is customer trust, remediation costs, and slower renewals; strong second-quarter demand suggests no clear financial damage yet.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$6.80B	$5.96B	$5.30B	$4.42B	$3.34B	$2.59B	$2.16B	$1.80B	$1.49B	$1.28B	$1.01B	$770.4M	$615.3M	$533.6M	$433.6M	$324.7M	$252.1M
Gross profit	$5.47B	$4.80B	$4.07B	$3.33B	$2.56B	$2.02B	$1.66B	$1.35B	$1.11B	$937.6M	$722.5M	$539.4M	$434.7M	$386.2M	$320.0M	$239.5M	$182.1M
Research & development	$815.5M	$716.8M	$613.8M	$512.4M	$424.2M	$341.4M	$277.1M	$244.5M	$210.6M	$183.1M	$158.1M	$122.9M	$102.7M	$81.1M	$63.6M	$49.8M	$42.2M
Operating expenses	$3.39B	$2.99B	$2.83B	$2.36B	$1.91B	$1.49B	$1.31B	$1.12B	$999.8M	$894.7M	$707.6M	$480.0M	$362.6M	$285.7M	$231.1M	$184.1M	$156.8M
Operating income	$2.08B	$1.80B	$1.24B	$969.6M	$650.4M	$531.8M	$351.0M	$234.4M	$109.8M	$42.9M	$14.9M	$59.3M	$72.1M	$100.5M	$88.9M	$55.3M	$25.3M
EBITDAderived	$2.24B	$1.93B	$1.35B	$1.07B	$734.8M	$600.6M	$412.6M	$290.1M	$165.3M	$91.4M	$46.5M	$81.4M	$87.7M	$112.0M	$95.9M	$61.0M	$31.3M
Net income	$1.85B	$1.75B	$1.15B	$857.3M	$606.8M	$488.5M	$331.7M	$334.9M	$31.4M	$32.2M	$8.0M	$25.3M	$44.3M	$66.8M	$62.5M	$41.2M	$60.2M
Basic EPSper diluted share	$2.45	$2.28	$1.47	$1.08	$0.74	$0.60	$1.94	$1.98	$0.18	$0.19	$0.05	$0.15	$0.27	$0.42	$0.41	$0.29	$0.97
Diluted EPSper diluted share	$2.42	$2.26	$1.46	$1.06	$0.73	$0.58	$1.90	$1.92	$0.18	$0.18	$0.05	$0.15	$0.26	$0.40	$0.38	$0.26	$0.39

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$151.2K disclosed value

Sells (SEC code S)133$291.18M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 3, 2026Form 4 · 10b5-1	Xie MichaelVP, ENGINEERING & CTO	SellCommon Stock	132	$148.30	$19.6K	9.92M
Jun 3, 2026Form 4 · 10b5-1	Xie MichaelVP, ENGINEERING & CTO	SellCommon Stock	564	$147.71	$83.3K	9.92M
Jun 3, 2026Form 4 · 10b5-1	Xie MichaelVP, ENGINEERING & CTO	SellCommon Stock	2.3K	$146.55	$342.5K	9.92M
Jun 3, 2026Form 4 · 10b5-1	Xie MichaelVP, ENGINEERING & CTO	SellCommon Stock	410	$145.72	$59.7K	9.93M
Jun 3, 2026Form 4 · 10b5-1	Xie MichaelVP, ENGINEERING & CTO	SellCommon Stock	464	$144.46	$67.0K	9.93M

Review ownership filings at SEC.gov ↗

Fortinet, Inc. (FTNT)

Financial charts

Financial statements

Insider buys & sells