Fortinet, Inc. (FTNT)

Price$178.67Cached quoteAs of 2026-09-25 08:15 UTC

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.

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.

Loading local price history

Revenue

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

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
Gross margin	80.46%	80.56%	76.68%	75.44%	76.57%	78.03%	76.61%	75.04%	74.23%	73.51%	71.59%	70.01%	70.64%	72.37%	73.80%	73.76%	72.24%
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
Operating margin	30.66%	30.28%	23.40%	21.95%	19.46%	20.50%	16.23%	12.99%	7.34%	3.36%	1.47%	7.70%	11.72%	18.83%	20.50%	17.04%	10.05%
EBITDA	$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
EBITDA margin	32.89%	32.34%	25.53%	24.31%	21.99%	23.15%	19.08%	16.08%	11.06%	7.17%	4.60%	10.56%	14.26%	21.00%	22.12%	18.80%	12.40%
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
Net profit margin	27.26%	29.30%	21.64%	19.41%	18.16%	18.83%	15.34%	18.56%	2.10%	2.52%	0.79%	3.29%	7.20%	12.52%	14.41%	12.70%	23.87%
Basic EPSper basic share	$2.45	$2.28	$1.47	$1.08	$0.74	$0.60	$0.39	$0.40	$0.04	$0.04	$0.01	$0.03	$0.05	$0.08	$0.08	$0.06	$0.19
Diluted EPSper diluted share	$2.42	$2.26	$1.46	$1.06	$0.73	$0.58	$0.38	$0.38	$0.04	$0.04	$0.01	$0.03	$0.05	$0.08	$0.08	$0.05	$0.08

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

8.48%of listed shares

BlackRock, Inc.62.24M shares · Jun 30, 2026

View holders

Top 20 reported holders of FTNT
Holder	% owned
BlackRock, Inc.	8.48%62.24M shares
Xie Ken	≈7.88%57.82M shares
VANGUARD CAPITAL MANAGEMENT LLC	5.54%40.66M shares
STATE STREET CORP	4.04%29.63M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	3.39%24.84M shares
Invesco Ltd.	3.36%24.62M shares
GEODE CAPITAL MANAGEMENT, LLC	2.38%17.44M shares
NORGES BANK	1.70%12.45M shares
FIRST TRUST ADVISORS LP	1.47%10.82M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.38%10.13M shares
Bank of New York Mellon Corp	1.27%9.33M shares
AQR CAPITAL MANAGEMENT LLC	1.18%8.67M shares
MORGAN STANLEY	1.17%8.56M shares
GOLDMAN SACHS GROUP INC	1.10%8.1M shares
NORDEA INVESTMENT MANAGEMENT AB	0.92%6.78M shares
Legal & General Group Plc	0.87%6.37M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	0.86%6.31M shares
NORTHERN TRUST CORP	0.86%6.28M shares
JPMORGAN CHASE & CO	0.68%4.99M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.68%4.97M shares

Percentages use 733.6M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

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 ↗

Community posts

View community

It’s quiet here.

No posts about FTNT yet. Start the conversation.

Write the first post

Fortinet, Inc. (FTNT)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.