From Nasdaq: 2025-05-29 11:56:00

Fortinet’s FTNT shares have surged 10.6% YTD, outperforming the Computer and Technology sector and the S&P 500. Key growth areas like SASE, AI-driven security, and OT security drive this performance. Strong margins, free cash flow, and enterprise adoption bolster investor confidence in Fortinet’s resilience and growth potential.

In Q1 2025, Fortinet saw a 14% YoY revenue increase to $1.54 billion, with product revenues up 12%. Total billings grew 14% to $1.6 billion, with strong performance in unified SASE and AI-driven SecOps. Gross margin expanded to 81.9%, and over 6,300 new customers were added, showcasing continued momentum.

Fortinet’s unified approach in cybersecurity sets it apart from competitors like Palo Alto Networks, Cisco Systems, and CrowdStrike. Fortinet’s single, organically developed FortiOS drives growth in SASE and AI-driven SecOps, reducing complexity and cost while enabling faster adoption and stronger performance. This approach positions Fortinet as a leader in integrated, scalable platforms.

Fortinet continues to strengthen its position in AI and firewall solutions, boasting over 500 AI patents and integrated AI into multiple products. The recent launch of the FortiGate 700G enhances its competitive edge with high-performance firewall technology. This innovation is expected to drive further adoption among enterprise customers seeking performance-focused solutions.

Fortinet projects Q2 2025 revenues between $1.59B to $1.65B, with non-GAAP EPS of 58-60 cents. Analysts estimate Q2 revenues at $1.62B, with EPS at 59 cents. Fortinet’s consistent earnings beats and strong guidance position it favorably for continued growth and market leadership in the cybersecurity sector.

Fortinet’s Price/Book ratio of 40.72X, though above the industry average, reflects its market position, integrated platform strategy, and customer expansion. This premium valuation aligns with Fortinet’s growth potential, making it a compelling long-term investment in the cybersecurity industry. Analysts recommend buying FTNT stock now for its growth prospects and market leadership.



Read more at Nasdaq: 3 Key Reasons to Buy Fortinet Stock Beyond its 11% Year-to-Date Rise