Core Viewpoint - A class action securities lawsuit has been filed against Fortinet, Inc. for alleged securities fraud affecting investors between November 8, 2024, and August 6, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Fortinet's management made false statements regarding the refresh cycle of their products, suggesting it would be more profitable than it actually was, as it involved older products that represented a "small percentage" of the company's business [2]. - It is alleged that Fortinet misrepresented the number of FortiGate firewalls eligible for upgrades and that the company had pushed through approximately half of the refresh in just a few months, contrary to claims of a gradual momentum over two years [2]. Group 2: Investor Information - Investors who suffered losses during the specified timeframe have until November 21, 2025, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving in this role [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, indicating no financial obligation to participate in the lawsuit [3]. Group 3: Legal Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States, with over 70 employees dedicated to serving clients [4].

Core Insights - Fortinet (FTNT) is at a pivotal moment as its firewall upgrade cycle is halfway through, with 40-50% of the refresh opportunity completed, driven by customers replacing legacy systems with Next-Generation Firewalls (NGFWs) before their 2026 end-of-service dates [1] Financial Performance - In Q2 2025, Fortinet's billings increased by 15% year-over-year to $1.78 billion, indicating strong demand for its advanced NGFWs, which integrate AI-driven threat prevention, zero-trust access, and secure SD-WAN [2] - The company anticipates that approximately 650,000 firewall units will reach end-of-service by late 2026, followed by another 350,000 low-end units in 2027, presenting a stable revenue opportunity [2] - Fortinet raised its 2025 billings guidance by $100 million to a range of $7.325-$7.475 billion, reflecting confidence in continued demand [3] Growth Projections - The Zacks Consensus Estimate projects Fortinet's total revenues to grow by 13.29% in 2025 and 11.05% in 2026, indicating steady double-digit growth [4] - Earnings estimates for Fortinet are $2.52 per share for 2025 and $2.77 per share for 2026, suggesting year-over-year earnings growth of 6.33% for 2025 and 9.83% for 2026 [13] Competitive Landscape - Fortinet competes with Palo Alto Networks (PANW) and Check Point Software Technologies (CHKP) in the next-generation firewall market. While PANW excels in enterprise deployments and advanced cloud integration, Fortinet maintains an edge in cost efficiency for mid-sized businesses [5] - Check Point emphasizes a prevention-first security approach, but Fortinet's integrated Security Fabric and faster innovation provide it with a competitive advantage in scalability and efficiency [6] Valuation Metrics - Fortinet shares have declined by 10.4% year-to-date, underperforming the Zacks Security industry's 23.2% rally and the broader Computer and Technology sector's 23.8% growth [7] - The company appears overvalued with a forward 12-month price-to-sales ratio of 8.84, higher than the sector's average of 6.94 [10]

Core Insights - Fortinet (NASDAQ: FTNT) has achieved an Annual Recurring Revenue (ARR) growth of 69%, positively impacting its operating and net margins [1] Company Summary - Fortinet is recognized as a leading global cybersecurity company [1] - The increase in NATO spending is expected to further benefit Fortinet's business [1] Industry Context - The technology sector, particularly Software as a Service (SaaS) and cloud businesses, is highlighted for its significant growth opportunities [1]

Core Insights - Fortinet (NASDAQ: FTNT) is a leading global cybersecurity company that has achieved a 69% increase in its Annual Recurring Revenue (ARR), positively impacting its operating and net margins [1]. Company Performance - The significant increase in NATO spending is expected to further benefit Fortinet, enhancing its market position and financial performance [1]. Industry Context - The cybersecurity sector, particularly companies like Fortinet, is experiencing robust growth driven by increased demand for security solutions amid rising global threats [1].

https://securitiesclasslaw.com/securities/fortinet-inc-loss-submission-form/?id=173408&from=4 CLASS PERIOD: November 8, 2024 to August 6, 2025 Accessibility StatementSkip Navigation NEW YORK, Oct. 23, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Fortinet, Inc. (NASDAQ: FTNT). Shareholders who purchased shares of FTNT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not r ...

Core Viewpoint - Fortinet, Inc. is expected to report its third-quarter results, with analysts projecting a slight decline in non-GAAP profit per share, while the company has consistently exceeded earnings expectations in recent quarters [2][5]. Financial Performance - Fortinet's Q3 non-GAAP profit is anticipated to be $0.55 per share, down 1.8% from $0.56 in the same quarter last year [2]. - For the full fiscal year 2025, adjusted EPS is expected to be $2.21, reflecting a 5.7% increase from $2.09 in 2024, with further growth projected for fiscal 2026 to $2.42 per share, a 9.5% year-over-year increase [3]. - The company's Q2 revenue grew 14% year-over-year to $1.6 billion, with net income rising 15.9% to $440.1 million, both figures surpassing consensus estimates [5]. Market Performance - Fortinet's stock has seen a modest increase of 2.7% over the past 52 weeks, significantly underperforming the Technology Select Sector SPDR Fund's 23.2% gains and the S&P 500 Index's 14.5% returns during the same period [4]. - Following the release of Q2 results, despite better-than-expected financials, Fortinet's stock price dropped over 22% in a single trading session due to missed revenue guidance for Q3 [5][6]. Analyst Sentiment - Analysts maintain a cautious outlook on Fortinet, with a consensus "Hold" rating. Among 43 analysts, there are nine "Strong Buys," 31 "Holds," one "Moderate Sell," and two "Strong Sells" [7]. - The stock is currently trading slightly below its mean price target of $88.30 [7].

Core Points - The Gross Law Firm has issued a notice to shareholders of Fortinet, Inc. regarding a class action lawsuit related to alleged false statements made by the company during a specific period [1][3] - The class period for the lawsuit is from November 8, 2024, to August 6, 2025, during which Fortinet is accused of misrepresenting the potential profitability of its product refresh cycle [3][4] - Shareholders are encouraged to register for the class action by November 21, 2025, to potentially become lead plaintiffs and receive updates on the case [4] Allegations - The complaint alleges that Fortinet's management misled investors about the refresh cycle's profitability, claiming it would be more lucrative than it actually was, as it involved old products that represented a "small percentage" of the company's business [3] - It is also claimed that Fortinet did not have a clear understanding of the number of FortiGate firewalls eligible for upgrades and misrepresented the momentum of the refresh cycle, stating it would gain traction over two years while it was pushed through rapidly in just a few months [3] Next Steps for Shareholders - Shareholders who purchased FTNT shares during the class period should register to be enrolled in a portfolio monitoring system that will provide updates on the case [4] - There is no cost or obligation for shareholders to participate in the class action [4] About the Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [5] - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [5]

Core Viewpoint - A securities class action lawsuit has been filed against Fortinet, Inc. for allegedly making false and misleading statements regarding its business operations and product refresh cycle during the specified Class Period from November 8, 2024, to August 6, 2025 [1][2]. Allegations of Misconduct - The lawsuit claims that Fortinet misrepresented the profitability of its product refresh cycle, stating it would be lucrative despite it consisting of older products that represented only a small portion of the business [2]. - It is alleged that Fortinet did not accurately disclose the actual number of FortiGate firewalls eligible for upgrades, leading to misleading statements about the company's operational capabilities [2]. - The complaint asserts that Fortinet misled investors by claiming that the refresh would gain momentum over two years, while in reality, the company had pushed through about half of the refresh in just a few months by the end of Q2 2025 [2]. - As a result of these actions, the statements made by Fortinet regarding its business, operations, and future prospects were materially false and lacked a reasonable basis [2]. Lead Plaintiff Process - Investors in Fortinet have until November 21, 2025, to seek appointment as a lead plaintiff representative in the class action, which involves directing the litigation on behalf of all class members [3]. - The lead plaintiff is typically the investor or group of investors with the largest financial interest in the case and is responsible for selecting legal counsel to represent the class [3]. Firm Background - Kessler Topaz Meltzer & Check, LLP is known for prosecuting class actions and has a reputation for recovering significant amounts for victims of corporate misconduct [4].

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Mid Cap Composite returned -3.2% net-of-fees, underperforming the Russell Midcap Growth Index which gained 2.8% [1] - The focus on high-quality, profitable companies struggled in a risk-on environment during the quarter [1] Company Highlights: Fortinet, Inc. (NASDAQ:FTNT) - Fortinet is recognized as the market share leader in network security firewalls by units and reported solid results in Q3 2025, but faced share pressure due to lower-than-expected revenue growth estimates for 2026 and 2027 [3] - The stock of Fortinet had a one-month return of -0.57% and a 52-week gain of 2.84%, closing at $84.78 per share with a market capitalization of $64.964 billion on October 21, 2025 [2] - Fortinet is not among the 30 most popular stocks among hedge funds, with 46 hedge fund portfolios holding its stock at the end of Q2 2025, down from 62 in the previous quarter [4] Investment Perspective - While Fortinet is acknowledged for its potential, the company is viewed as having less upside compared to certain AI stocks, which are believed to offer greater potential and lower downside risk [4]

Core Viewpoint - A class action lawsuit has been filed against Fortinet, Inc. for alleged misrepresentations regarding its product refresh cycle and the true number of FortiGate firewalls eligible for upgrades, leading to significant investor losses [7]. Allegation Details - The lawsuit claims that Fortinet's management misrepresented the potential profitability of the refresh cycle, stating it would not be as lucrative as suggested due to the age and limited scope of the products involved [7]. - It is alleged that Fortinet concealed the uncertainty regarding the number of FortiGates that required upgrades and misled investors about the momentum of the refresh cycle [7]. - Following the earnings call on August 6, 2025, where Fortinet disclosed that it was only 40% to 50% through the upgrade cycle, the stock price dropped over 22% [7]. Next Steps - Investors who purchased Fortinet shares during the specified class period (November 8, 2024, to August 6, 2025) and suffered losses are encouraged to contact the law firm for more information and to discuss their legal rights [4]. - The deadline for investors to apply to be appointed as lead plaintiff in the lawsuit is November 21, 2025 [7]. About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm that represents individual and institutional investors in complex litigation across various courts in the United States [5].