Investors might want to bet on Fortinet (FTNT) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings pic ...

Core Points - Fortinet has been awarded the 2025 Google Cloud Infrastructure Modernization Partner of the Year Award for Networking, marking its fifth recognition as a Google Cloud Technology Partner of the Year [1][2] - The award underscores Fortinet's strong application and infrastructure security solutions and its deep integration with Google Cloud services through the Fortinet Security Fabric powered by FortiOS [2][6] - Fortinet's solutions enable businesses to scale, optimize performance, and defend against evolving threats in complex cloud environments [2][3] Company Overview - Fortinet is a leader in cybersecurity, focusing on the convergence of networking and security, with a mission to secure people, devices, and data globally [7] - The company offers a comprehensive portfolio of over 50 enterprise-grade products, trusted by more than half a million customers [7] - Fortinet's training institute is one of the largest in the industry, dedicated to enhancing cybersecurity training and career opportunities [7] Product and Service Highlights - Fortinet's FortiGate VM serves as a virtual next-generation firewall (NGFW), enforcing consistent security policies across various cloud environments [2][4] - The company provides a cloud security platform that includes application security and cloud-native application protection platform (CNAPP) solutions, offering integrated code-to-security with 360-degree defense-in-depth protection [3] - Fortinet's Unified SASE simplifies operations and enables secure remote and on-prem access, protecting networks, applications, and data [4] Licensing and Customer Flexibility - Fortinet's FortiFlex licensing program allows Google Cloud customers to optimize their deployments and investments, enabling scalability and rollover of unused credits [5] - The program also assists customers with Google Cloud Committed Use Discount agreements in meeting their spending obligations [5]

New AI capabilities empower organizations to protect against emerging threats, accelerate security and network operations with agentic AISUNNYVALE, Calif. and BERLIN, April 08, 2025 (GLOBE NEWSWIRE) -- Accelerate 2025 News Summary Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced significant FortiAI innovations embedded across the Fortinet Security Fabric platform to enhance protection against new and emerging threats, simplify and ...

AT&T, ServiceNow, and Fortinet will survive the incoming tariffs and trade wars.Many tech stocks plummeted this month after the Trump administration imposed its "Liberation Day" tariffs on most of the country's top trading partners. Higher tariffs against China, Taiwan, South Korea, Thailand, Vietnam, and India raised bright red flags for American tech companies, which were tightly tethered to those countries.This storm might pass if cooler heads prevail, but it's too early to invest in tariff-wracked stock ...

Core Points - Fortinet will hold a conference call to discuss its first quarter 2025 financial results on May 7, 2025, at 1:30 p.m. Pacific Time [1] - The conference call will be available in listen-only mode on Fortinet's investor relations website [2] - Fortinet is a leader in cybersecurity, focusing on the convergence of networking and security, with over 50 enterprise-grade products [3] Company Overview - Fortinet's mission is to secure people, devices, and data globally, serving over half a million customers [3] - The company collaborates with public and private sector organizations to enhance global cyber resilience [3] - FortiGuard Labs, Fortinet's threat intelligence organization, utilizes advanced machine learning and AI technologies for threat protection [3]

Core Viewpoint - Fortinet has emerged as a leading player in the cybersecurity sector, achieving a 52-week total return of 50%, outperforming competitors like Palo Alto Networks and CrowdStrike [1][2]. Group 1: Company Performance - Fortinet's market share in physical firewall units shipped reached over 50% in 2024, bolstered by the use of application-specific integrated circuits (ASICs) known as FortiASIC [3][5]. - The company's services now account for 68% of total revenue in 2024, significantly contributing to a 660 basis point increase in adjusted operating margin [5][6]. - Fortinet reported a sales growth of over 17% and an adjusted EPS increase of 45%, surpassing analyst expectations [6][7]. Group 2: Future Growth Catalysts - The company anticipates a significant refresh cycle in 2026 and 2027, where over one-third of its firewall base will require upgrades, potentially driving service sales growth [11][12]. - Fortinet's ASIC-enabled hardware is being utilized in data centers, with opportunities to secure AI data centers, which is crucial given the increasing data generated by AI [10][9]. - Product revenues grew just under 18%, indicating a strong potential for upselling high-margin service revenue as more physical products are installed [8][6].

Core Insights - Exclusive Networks North America has been designated as an Engage Preferred Services Partner (EPSP) within Fortinet's Engage Partner Program, highlighting its capability in deploying and maintaining comprehensive security solutions for digital acceleration [1][2][3] Company Overview - Exclusive Networks is a global cybersecurity specialist with a presence in over 45 countries, serving customers in more than 170 countries, combining local insights with global scale [6][7] EPSP Partnership Significance - The EPSP status validates Exclusive Networks' expertise in enhancing cybersecurity strategies and driving customer confidence, which is crucial for business growth [2][3] - The partnership provides access to specialized training and direct support from Fortinet experts, enabling Exclusive Networks to develop advanced security services for customers with hybrid network infrastructures [3][4] Program Focus - Fortinet's Engage Partner Program aims to assist partners in addressing new customer challenges arising from work-from-anywhere models and hybrid IT environments, facilitating growth opportunities through its extensive portfolio [4][5] - The program emphasizes the importance of specialized training and support to help partners succeed in a rapidly evolving threat landscape [2][4]

Company Performance - Fortinet's stock closed at $99.79, with a daily increase of +1.16%, underperforming the S&P 500's gain of 1.77% [1] - Over the past month, Fortinet's shares have decreased by 10.33%, while the Computer and Technology sector and the S&P 500 have lost 9.47% and 5.73%, respectively [1] Earnings Forecast - Fortinet is expected to report an EPS of $0.53, reflecting a 23.26% increase from the same quarter last year [2] - The projected revenue for Fortinet is $1.54 billion, which is a 13.52% rise compared to the previous year [2] Full-Year Estimates - The full-year Zacks Consensus Estimates predict earnings of $2.46 per share and revenue of $6.76 billion, indicating year-over-year growth of +3.8% and +13.49%, respectively [3] - Recent changes in analyst estimates for Fortinet are crucial as they often indicate short-term business trends [3] Zacks Rank and Valuation - Fortinet currently holds a Zacks Rank of 2 (Buy), with a consensus EPS projection that has increased by 1.29% in the last 30 days [5] - The company has a Forward P/E ratio of 40.17, which is lower than the industry average of 61.78, suggesting a valuation discount [5] Industry Context - Fortinet's PEG ratio stands at 3.09, which considers projected earnings growth alongside the P/E ratio [6] - The Security industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [6][7]

Core Insights - Fortinet has strengthened its position in the cybersecurity market with advancements in endpoint detection and response technology, particularly through the introduction of FortiEDR enhancements and the new FortiEndpoint unified client [1][6] - The cybersecurity landscape is evolving rapidly due to the adoption of remote and hybrid work models, presenting challenges for IT security teams, with Fortinet's FortiEDR positioned to offer comprehensive security across various operating systems and environments [2] - Fortinet's stock has surged by 43.2% over the past year, significantly outperforming the Zacks Computer and Technology sector's return of 5.7%, indicating strong prospects in the cybersecurity sector [3] Financial Performance - Fortinet's fourth-quarter 2024 earnings report showed total revenues of $1.66 billion, a 17% year-over-year increase, and product revenues of $574 million, up 18% [7] - The company achieved a record operating margin of 39%, reflecting operational efficiency while investing in growth areas [8] - The Zacks Consensus Estimate for 2025 revenues is $6.76 billion, suggesting a year-over-year growth of 13.49%, with earnings estimates increasing to $2.45 per share [14] Competitive Advantages - Fortinet's FortiEDR offers extensive support for both modern and legacy operating systems, addressing a significant market need by securing older systems like Windows XP SP2 and Windows Server 2003 [9][10] - The integration of FortiEDR with FortiRecon enhances threat intelligence and security operations by providing visibility into the external attack surface, allowing security analysts to prioritize alerts based on risk factors [11] - Fortinet's holistic Security Fabric strategy combines network, endpoint, and cloud protection under a unified management framework, appealing to customers seeking simplified security infrastructure [12] Investment Outlook - Fortinet presents a compelling investment opportunity for 2025, driven by technological innovations in endpoint security and strong financial performance [18] - The company's premium Price/Book ratio of 50.37 reflects investor confidence in its growth potential and technological leadership, compared to the Zacks Internet Software industry average of 23.74 [15][16] - Fortinet's ability to balance innovation with execution, along with strong financial discipline, positions it as a leader in the cybersecurity space for 2025 and beyond [20]

Company Performance - Fortinet's stock closed at $96.62, reflecting a +0.38% change from the previous session, underperforming the S&P 500 which gained 0.64% [1] - The stock has decreased by 13.79% over the past month, compared to the Computer and Technology sector's loss of 11.22% and the S&P 500's loss of 7.69% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.53, a 23.26% increase year-over-year, with quarterly revenue projected at $1.54 billion, up 13.52% from the previous year [2] - For the full year, earnings are projected at $2.45 per share and revenue at $6.76 billion, representing increases of +3.38% and +13.49% respectively from the prior year [3] Analyst Estimates and Rankings - Recent analyst estimate revisions indicate positive sentiment towards Fortinet's business and profitability [3] - The Zacks Rank system currently rates Fortinet as 2 (Buy), with a consensus EPS projection having increased by 0.9% in the last 30 days [5] Valuation Metrics - Fortinet's Forward P/E ratio stands at 39.32, which is a discount compared to its industry's Forward P/E of 60.65 [6] - The company has a PEG ratio of 3.02, which is comparable to the industry average PEG ratio of 3.03 [6] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]