From Nasdaq: 2025-06-09 11:14:00

Fortinet’s FortiGuard AI-powered security services are seeing increased adoption, driving a 14% year-over-year growth in service revenues to $1.08 billion in Q1 2025. Security subscriptions, including FortiGuard services, grew 16% year over year, making up 57.7% of total service revenues. The company’s AI-powered Workspace Security Suite protects key productivity platforms and integrates seamlessly into Fortinet’s Security Fabric.

With competition from Palo Alto Networks and Cisco Systems, Fortinet faces challenges in the AI security space. Palo Alto Networks acquired Protect AI to strengthen its defenses against emerging threats, while Cisco Systems introduced agentic AI for faster threat detection and launched Foundation AI for security reasoning. Both companies are enhancing their AI security capabilities.

Fortinet’s share price has risen 9.8% YTD, underperforming the Security industry but outperforming the Computer and Technology sector. The company’s stock is trading at a Price/Book ratio of 40.88X, with a Value Score of F. The Zacks Consensus Estimate for Q2 2025 earnings is 59 cents per share, indicating 3.51% year-over-year growth.

The consensus estimate for Fortinet’s 2025 earnings is $2.48 per share, showing 4.64% year-over-year growth. The company carries a Zacks Rank #3 (Hold). Fortinet’s AI services are expected to drive long-term growth as it deepens integration across its portfolio and holds over 500 AI-related patents. Demand for scalable, intelligence-led protection in hybrid and cloud environments is projected to boost recurring revenue growth.



Read more at Nasdaq: Is Fortinet’s FortiGuard AI Service Becoming a Key Growth Driver?