Core Insights - Fortinet has launched the FortiGate 700G series, a next-generation firewall designed for modern campuses, featuring advanced capabilities such as post-quantum cryptography and AI-driven threat detection [1][2] Performance and Specifications - The FortiGate 700G series offers up to 7x higher firewall throughput (164 Gbps) and 4x better threat protection (26 Gbps) compared to industry averages [4][5] - It supports IPsec VPN throughput of 55 Gbps, which is also 7x higher than competitors [4] - The series can handle 16 million concurrent sessions and 700,000 connections per second, outperforming other leading brands [6] Energy Efficiency - The FortiGate 700G series consumes 1.8 watts per Gbps for firewall throughput, which is 7x more efficient than the industry average [6] - For IPsec VPN throughput, it consumes 5.4 watts per Gbps, 6x lower than competitors [6] Advanced Security Features - The series includes FortiAI-Protect for AI-driven threat detection and risk mitigation, enhancing the ability to block sophisticated cyber threats [5] - It features post-quantum cryptography readiness, enabling organizations to protect sensitive data against future quantum threats [5] Integration and Scalability - Fortinet's Security Fabric integrates the FortiGate 700G series into a unified cybersecurity platform, providing centralized management and real-time visibility across hybrid environments [7] - The series supports a wide range of network interfaces from 5GE to 25GE, allowing for flexibility and future upgrades without significant costs [5]

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Core Viewpoint - Fortinet is expected to report first-quarter 2025 results on May 7, with anticipated revenues between $1.5 billion and $1.56 billion, and non-GAAP earnings per share in the range of 52-54 cents, indicating a positive growth trajectory despite some near-term challenges [1][5][21]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $1.54 billion, reflecting a year-over-year growth of 13.54%, while the consensus for earnings is 53 cents per share, indicating a year-over-year increase of 23.26% [1]. - The Americas revenue estimate is $635 million, showing a decline of 4.65% year-over-year, while Asia Pacific and Japan revenues are expected to grow by 2% to $308 million. European, Middle Eastern, and African revenues are projected to decrease by 13.3% to $600 million [11][12]. Earnings Surprise History - Fortinet has a history of exceeding earnings estimates, with a 23.33% surprise in the last reported quarter and an average surprise of 24.76% over the last four quarters [3]. Growth Drivers - Key growth drivers include SASE and AI-led security, with FortiSASE ARR growing 96% year-over-year and pipeline activity increasing by 90%. Over 70% of large enterprise customers are utilizing Fortinet's SD-WAN, indicating strong future upselling potential [6][10]. - The company is also experiencing a hardware refresh cycle, particularly among large enterprises, which is expected to contribute to growth in the second half of 2025 [7]. Challenges and Market Conditions - Tariff changes and economic uncertainty may limit first-quarter upside, with noted weaknesses in Canada, Latin America, and the U.S. federal space due to policy and budget delays [8][21]. - Integration of recent acquisitions is expected to reduce operating margins by 40 basis points, and infrastructure spending is projected to rise to $80-$100 million, impacting short-term margins [9][21]. Competitive Landscape - Despite fierce competition from companies like Palo Alto Networks, Zscaler, and CrowdStrike, Fortinet's focus on reducing complexity and expanding sales capacity positions it for long-term growth [10][21]. Stock Performance and Valuation - Fortinet's shares have gained 12.4% year-to-date, outperforming the Computer and Technology sector and the S&P 500 index [13]. - The stock is trading at a significant premium, with a Price/Book ratio of approximately 54.66 compared to the industry's 25.36, indicating high growth expectations from investors [17]. Investment Considerations - While Fortinet shows strong product momentum and demand for SASE solutions, investors are advised to maintain a hold stance due to potential near-term pressures from tariffs, budget delays, and competition [21][22].

Core Viewpoint - Fortinet (FTNT) is positioned well to continue its trend of beating earnings estimates, with a strong history of performance in the Zacks Security industry [1][5]. Earnings Performance - In the most recent quarter, Fortinet reported earnings of $0.74 per share, exceeding the expected $0.60 per share, resulting in a surprise of 23.33% [2]. - For the previous quarter, Fortinet's earnings were $0.63 per share against an expectation of $0.51 per share, leading to a surprise of 23.53% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Fortinet, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [5][8]. - The current Earnings ESP for Fortinet is +3.77%, suggesting analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - Fortinet holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high likelihood of a positive surprise, with historical data showing nearly 70% success in such cases [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions before earnings releases [7].

Wall Street analysts expect Fortinet (FTNT) to post quarterly earnings of $0.53 per share in its upcoming report, which indicates a year-over-year increase of 23.3%. Revenues are expected to be $1.54 billion, up 13.5% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe ...

Core Viewpoint - Fortinet's valuation is a concern for investors as it trades at a significant premium compared to the broader Zacks Security industry, with a Price/Book ratio of 53.65 versus the industry's 25.04, indicating high growth expectations from investors [1][2] Valuation Concerns - The current Price/Book ratio of Fortinet is 53.65, significantly higher than the industry average of 25.04, suggesting a stretched valuation [1] - The Value Score of F indicates that Fortinet's valuation is currently stretched [1] Competitive Landscape - Fortinet operates in a highly competitive cybersecurity market, facing strong competition from companies like Palo Alto Networks, Zscaler, and CrowdStrike [5] - Competitors are rapidly innovating and making strategic acquisitions, which could impact Fortinet's market share and technological relevance if it fails to keep pace [6][7] Macroeconomic Pressures - Fortinet is experiencing pressures from macroeconomic uncertainties, including trade tensions and economic instability in key markets such as Latin America, Mexico, and Canada [8] - The company faces potential disruptions in the U.S. federal market due to staffing issues, which could negatively affect sales [8] - Broader stock market weakness and high interest rates are also impacting Fortinet, making its elevated valuations more risky [9] Earnings Estimates - The Zacks Consensus Estimate for Q1 2025 earnings is 53 cents per share, indicating a year-over-year growth of 23.26%, with revenues expected to reach $1.54 billion, reflecting a 13.54% year-over-year growth [11] - Fortinet has consistently beaten earnings estimates in the past four quarters, with an average surprise of 24.76% [11] Stock Performance - Fortinet shares have gained 10.3% year-to-date, outperforming the Zacks Computer and Technology sector and the S&P 500 index, which declined by 10.7% and 5.8%, respectively [13] - The company's outperformance is attributed to its strong position in the SASE solutions market, which is seeing accelerated adoption [14] Growth Drivers - Fortinet's growth is driven by its Unified SASE strategy integrated into the FortiOS operating system, providing seamless networking and security [16] - SASE Annual Recurring Revenue (ARR) has grown by 96%, and FortiSASE deals have increased by 60% in 2024, indicating strong customer interest and adoption [17] - A recent partnership with Vodafone Business aims to expand Fortinet's reach in European markets, enhancing its growth potential [18] Conclusion - Current valuations suggest that investors might benefit from waiting for a better entry point, as Fortinet's strengths are countered by challenges from increased competition and macroeconomic uncertainties [19][20]

LONDON and SUNNYVALE, Calif., April 29, 2025 (GLOBE NEWSWIRE) -- News Summary Vodafone Business and Fortinet (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced an expanded global partnership, extending the reach of their converged networking and cybersecurity services to additional countries across Europe and Asia, as well as the United States. Together, the two companies are helping businesses deliver on the connectivity needs of today's hybr ...

Core Insights - The 2025 Global Threat Landscape Report from FortiGuard Labs indicates a significant rise in Cybercrime-as-a-Service on the darknet, leading to a booming market for credentials, exploits, and access [1][2] Group 1: Cybercrime Trends - Automated scanning has reached record highs, with a 16.7% year-over-year increase in 2024, resulting in 36,000 scans per second globally [3] - Darknet marketplaces have become sophisticated, with a 39% increase in new vulnerabilities added to the National Vulnerability Database, totaling over 40,000 in 2024 [3] - AI is being leveraged by cybercriminals to enhance phishing attacks and evade security measures, with tools like FraudGPT and BlackmailerV3 becoming more prevalent [3] Group 2: Targeted Sectors - Critical sectors such as manufacturing (17%), business services (11%), and healthcare are experiencing a surge in tailored cyberattacks, with the United States being the most targeted country at 61% [3] - Cloud security risks are escalating, with 70% of incidents involving logins from unfamiliar geographies, emphasizing the need for identity monitoring [3] Group 3: Credential Theft - Over 100 billion compromised records were shared on underground forums in 2024, marking a 42% increase, largely due to the rise of "combo lists" containing stolen credentials [3] - Prominent cybercriminal groups like BestCombo and ValidMail are actively lowering the barrier to entry for cybercrime by packaging and validating stolen credentials [3] Group 4: Recommendations for Cybersecurity - The report provides actionable insights for CISOs, emphasizing the need for a proactive, intelligence-led defense strategy that incorporates AI and continuous threat exposure management [4][5] - Strategies include continuous attack surface management, real-world emulation of adversary behavior, and leveraging dark web intelligence to preemptively mitigate threats [8]

Group 1 - The core viewpoint is that data is increasingly valuable, likening it to gold, and the frequency of cyberattacks is rising, making cybersecurity essential for companies, which positions Fortinet as a critical player in this market [1] - Fortinet has evolved from a firewall supplier to a comprehensive cybersecurity provider, indicating significant growth and diversification in its offerings [1] - The demand for robust cybersecurity solutions is driven by the growing dependence of companies on data protection, highlighting the importance of Fortinet's services in the current digital landscape [1] Group 2 - The article emphasizes the characteristics of companies that are attractive for investment, including growth in revenue, earnings, and free cash flow, as well as favorable valuations [1] - It mentions a preference for companies with high free cash flow margins, dividend stocks, and those with share repurchase programs, which are indicators of financial health and shareholder value [1]

Industry Overview - Cybersecurity has transitioned from a back-office concern to a boardroom priority due to the increasing frequency and sophistication of cyberattacks, with global cybercrime costs projected to rise from $9.22 trillion in 2024 to $15.63 trillion by 2029 [1] - The global cybersecurity market is expected to grow from $193.73 billion in 2024 to $562.72 billion by 2032, reflecting a compound annual growth rate (CAGR) of 14.3% [2] - The growth in the cybersecurity market is driven by increasing enterprise IT complexity, rising regulatory scrutiny, and the need for real-time protection of data, identities, and infrastructure [2] Technological Advancements - Artificial intelligence (AI) is revolutionizing the cybersecurity landscape, enabling more efficient detection, prevention, and response to cyber threats [3] - AI can analyze large volumes of data, detect anomalies, and identify potential breaches in real time, providing a proactive approach to security [3] Company Highlights - Companies like Fortinet, Zscaler, Okta, and Qualys are heavily investing in AI-driven security solutions to enhance their capabilities and position themselves for long-term growth in the expanding cybersecurity market [4] - Okta specializes in identity and access management (IAM) and is ramping up its AI capabilities to address the complexities of digital identities [6] - Qualys focuses on vulnerability management and cloud security, integrating advanced AI models into its platforms for faster detection and remediation of security threats [10][11] - Fortinet offers a comprehensive suite of cybersecurity solutions, differentiating itself with high-performance security at lower costs, and has integrated AI-driven analytics into its services [13][14][15] - Zscaler is a pioneer in zero-trust security, enhancing its platform with AI-powered security analytics to improve threat detection and response [16][17][18] Financial Performance - Okta reported 19,650 customers at the end of fiscal Q4 2025, with a 7% year-over-year increase in customers with over $100,000 in Annual Contract Value (ACV) [8] - Qualys' AI-powered platform is expected to drive customer adoption and revenue growth, positioning it well in the market [12] - Fortinet has consistently delivered profitability and strong free cash flow, reflecting its growing market share and demand for AI-enhanced security solutions [15] - Zscaler has maintained robust financial performance with expanding revenues driven by demand for its AI-enhanced offerings [18]