Core Insights - Fortinet has announced significant enhancements to FortiAnalyzer, aimed at improving security operations for midsize enterprises by leveraging AI and a unified data lake [1][3][4] - The updated FortiAnalyzer provides a comprehensive platform for security operations, integrating threat intelligence and automated incident response capabilities [2][8] Product Features - FortiAnalyzer offers a unified data lake for centralized visibility, consolidating network and security logs, analytics, and compliance reporting into a single view [7] - Advanced threat detection is powered by AI and integrated threat intelligence from FortiGuard Labs, enabling faster identification and response to vulnerabilities [7] - Automated incident response is facilitated through prebuilt SOC automation content packs, allowing security teams to manage threats with minimal manual intervention [7] - Enhanced automation connectors improve integration with other Fortinet products and third-party services, streamlining incident resolution [7] - The platform includes embedded GenAI assistance to enhance threat investigation and response capabilities [7] Market Context - The enhancements to FortiAnalyzer address the challenges faced by resource-constrained security teams, enabling them to operate at the level of larger security operations without the need for extensive personnel or multiple tools [8] - Current customers with FortiGuard subscription services will have immediate access to the new features, ensuring they can keep pace with emerging threats [9]

Core Viewpoint - Fortinet's stock has experienced a significant increase of 55% over the past six months, driven by strong quarterly results indicating improved growth prospects in the cybersecurity sector [1] Financial Performance - Fortinet's fourth-quarter 2024 results exceeded analyst expectations, leading to a nearly 3% increase in stock price post-report [2] - The company's earnings for 2025 are projected to be $2.48 per share, reflecting a modest 5% increase compared to the previous year, which is significantly slower than the 45% growth seen in 2024 [4][5] - Fortinet's price-to-earnings ratio has risen to 48, which is high compared to the Nasdaq-100 index's multiple of 34, indicating a potentially expensive valuation [3] Market Position and Growth Potential - Fortinet holds a leading position in the network firewall security market with over 50% market share, positioning the company to benefit from a market expected to grow nearly 2.5 times by 2034 [7] - The unified secure access service edge (SASE) market, which Fortinet is actively entering, is projected to grow at an annual rate of 12% through 2029, potentially generating $17 billion in annual revenue [9] - Fortinet's remaining performance obligations in unified SASE increased by 21% year-over-year to $1.45 billion, indicating strong contract signings and future revenue potential [9][10] Future Earnings Forecast - Analysts predict that if Fortinet achieves earnings of $3.41 per share by 2027 and maintains a forward earnings multiple of 44, the stock price could reach $150, representing a 39% increase from current levels [11] - There is potential for further upside if Fortinet accelerates its growth in network security and unified SASE, suggesting that the stock may continue to perform well in the long term [12]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Fortinet (FTNT) - Fortinet currently holds a Momentum Style Score of B, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), which is associated with a historical outperformance in the market [4] Price Performance - Over the past week, Fortinet shares have increased by 6.72%, while the Zacks Internet - Software industry remained flat [6] - In a longer timeframe, Fortinet's shares have risen by 15.73% over the past month, compared to the industry's 3.68% [6] - Over the last quarter, Fortinet shares have increased by 16.5%, and over the past year, they have risen by 51.95%, while the S&P 500 has only moved 1.43% and 21.95%, respectively [7] Trading Volume - Fortinet's average 20-day trading volume is 4,407,876 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 13 earnings estimates for Fortinet have been revised upwards, while only 1 estimate was revised downwards, leading to an increase in the consensus estimate from $2.35 to $2.43 [10] - For the next fiscal year, 7 estimates have moved upwards with no downward revisions [10] Conclusion - Given the positive price trends, trading volume, and earnings outlook, Fortinet is positioned as a strong momentum pick with a 2 (Buy) rating and a Momentum Score of B [12]

Core Insights - Fortinet is showcasing its innovative Sovereign SASE solution at MWC Barcelona 2025, aimed at enabling service providers to create dedicated private SASE services for organizations in regulated industries such as finance, healthcare, and government [1][3]. Group 1: Sovereign SASE Solution - The Fortinet Sovereign SASE solution allows service providers to leverage existing investments in Fortinet Secure SD-WAN, facilitating a natural expansion into sovereign SASE [2]. - This solution is powered by FortiOS, enabling quick deployment to meet the increasing demands for data sovereignty in the SASE market [2]. - Fortinet's Sovereign SASE addresses compliance challenges by providing a robust platform that simplifies the adoption of modern SASE architectures for organizations with strict regional or regulatory requirements [3]. Group 2: Compliance and Security - The Sovereign SASE solution ensures compliance with regional data privacy laws and manages cross-border data transfers while adhering to strict localization requirements [5]. - It addresses operational complexities in securing sensitive data across hybrid and multi-cloud environments, balancing low-latency performance with localized data inspection and storage [5]. - The solution empowers service providers to enhance their offerings with secure, flexible, and compliant SASE solutions, driving innovation and revenue growth [5]. Group 3: Event Details - Fortinet will be present at MWC 2025 in Barcelona from March 3–6, 2025, at booth 6G48 in hall 6, where attendees can learn more about the Sovereign SASE solution [4].

Have you assessed how the international operations of Fortinet (FTNT) performed in the quarter ended December 2024? For this network security company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For i ...

Fortinet Inc. (FTNT) reported strong fourth-quarter 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year.Fortinet reported fourth-quarter 2024 non-GAAP earnings per share (EPS) of 74 cents, which beat the Zacks Consensus Estimate by 23.33%. The bottom line climbed 45.1% from the year-ago quarter’s earnings of 41 cents.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.Total revenues of $1.66 billion beat the consensus ma ...

Cybersecurity firm Fortinet, Inc FTNT released its upbeat fourth-quarter print on Thursday.Fortinet reported fourth-quarter revenue of $1.66 billion, up 17%, topping the consensus estimate of $1.59 billion. The cybersecurity company reported fourth-quarter adjusted earnings of 74 cents per share, above analyst estimates of 61 cents per share.Also Read: PayPal Transaction Margins and Payment Volume Drive Growth, Eyes 2025 Growth With Strong TMD Ahead of Investor Day: AnalystFortinet expects first-quarter rev ...

As of Feb. 7, 2025, two stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, acco ...

FTNT and NET are some of the best stocks on Wall Street todayTwo cybersecurity firms are in focus this morning after their respective earnings reports. Fortinet Inc (NASDAQ:FTNT) and Cloudflare Inc (NYSE:NET) are both some of the best stocks on Wall Street today, melting up even as the broader market struggles for direction.FTNT is 5% higher in premarket trading, after the February outperformer reported a top-line beat for the fourth quarter. In response, no fewer than 11 brokerages hiked their price target ...

Financial Data and Key Metrics Changes - Fortinet reported total revenue growth of 17% in Q4 2024, reaching $1.66 billion, with product revenue increasing by 18% to $574 million, marking the highest growth rate in six quarters [10][26] - The operating margin reached a record 39.2%, reflecting a 720 basis point increase, driven by strong gross margins and favorable foreign exchange impacts [29][30] - Free cash flow was $380 million, representing a margin of 23%, while adjusted free cash flow was $549 million, with a margin of 28% [31] Business Line Data and Key Metrics Changes - Unified SaaS and secure operations saw significant growth, with Unified SaaS billings growing 13% and Security Service Edge (SSE) experiencing a remarkable 96% ARR growth [10][22] - The service revenue grew 17% to $1.09 billion, accounting for 65% of total revenue, driven by a 130% increase in SaaS solutions [27][28] - The company added a record 6,900 new logos, indicating strong alignment with channel partners [22] Market Data and Key Metrics Changes - EMEA was the best-performing geography, with growth exceeding 25% from international emerging markets [24] - Among the top five verticals, government and service providers both grew over 20%, while financial services faced challenges due to difficult year-over-year comparisons [25] Company Strategy and Development Direction - Fortinet aims to lead the convergence of networking and security, with a focus on a single operating system for all secure networking functions [15][16] - The company is expanding its enterprise-grade security solutions to remote workers and consumers through its acquisition of Linksys [18][115] - Fortinet's strategy includes leveraging AI-driven security and unified management to enhance user experience and operational efficiency [14][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from the upcoming refresh cycle, particularly in the second half of 2025, as many devices approach end-of-life [44][46] - The company anticipates that the momentum in secure networking will continue to build, with significant upsell opportunities in the coming years [46][49] - Management acknowledged potential challenges from tariffs and geopolitical factors affecting demand, particularly in Latin America and Canada [100][102] Other Important Information - The company announced the retirement of CFO Keith Jensen, with Christiana Ohlgaard set to take over the role [53][55] - Fortinet's acquisitions of Lacework and Perception Point are expected to enhance billings and revenue growth while impacting operating margins [30][47] Q&A Session Summary Question: Involvement with hyperscalers like Oracle - Management highlighted the significant growth opportunities in securing data centers for hyperscalers, leveraging their secure ASIC technology [62] Question: Weakness in billings guidance - Management explained that while Q4 billings were strong, caution in guidance for Q1 was due to geopolitical concerns and tariff impacts [74][75] Question: Refresh opportunity implications for subscription revenue - Management indicated that growing subscription revenue will depend on upselling and selling more services alongside existing hardware [80][81] Question: US performance sustainability - Management expressed optimism about sustained growth in the US, driven by increased sales capacity and collaboration with channel partners [108][109] Question: Linksys relationship and expectations - Management discussed the strategic importance of the Linksys acquisition in expanding consumer and SMB market presence [114][115] Question: Inventory levels in anticipation of demand - Management indicated a target for healthy inventory turns and a gradual upgrade cycle expected in the second half of the year [120][124] Question: Contribution from upgrade cycle in guidance - Management noted that larger enterprises are leading the refresh cycle, with expectations for gradual upgrades rather than spikes [162][164]