Financial Performance - Total revenue for Q4 2024 was $1.66 billion, an increase of 17% year-over-year[6] - Product revenue for Q4 2024 was $574 million, up 18% year-over-year[6] - Billings for Q4 2024 reached $2.00 billion, a 7% increase year-over-year[6] - Total revenue for the year ended December 31, 2024, was $5,955.8 million, a 12.3% increase from $5,304.8 million in 2023[29] - Net income for the year ended December 31, 2024, reached $1,745.2 million, up 52.2% from $1,147.8 million in 2023[29] - Operating income for the year ended December 31, 2024, was $1,803.4 million, representing a 45.3% increase compared to $1,241.1 million in 2023[29] - Non-GAAP net income for the year ended December 31, 2024, was $1,832.9 million, a 42.7% increase from $1,285.6 million in 2023[33] - Total revenue for Q4 2024 reached $1,660.1 million, a 17.3% increase from $1,415.1 million in Q4 2023[37] Cash Flow and Liquidity - Cash flow from operations for 2024 was $2.26 billion, compared to $1.94 billion in 2023[10] - Net cash provided by operating activities for Q4 2024 was $477.6 million, up from $191.7 million in Q4 2023, representing a 149% increase[36] - Free cash flow for the year ended December 31, 2024, was $1,879.2 million, compared to $1,731.4 million for the previous year, reflecting an increase of 8.5%[36] - Total cash and cash equivalents at the end of the year were $2,875.9 million, up from $1,397.9 million at the beginning of the year[32] Assets and Equity - Total assets increased to $9,763.1 million in December 2024, up from $7,258.9 million in December 2023, representing a growth of approximately 34.5%[27] - Cash and cash equivalents rose significantly to $2,875.9 million, compared to $1,397.9 million in the previous year, marking an increase of about 105.5%[27] - The company reported a total stockholders' equity of $1,493.8 million, a significant recovery from an accumulated deficit of $(463.4) million in the previous year[27] Deferred Revenue and Billings - Deferred revenue increased to $3,276.2 million, up from $2,848.7 million, reflecting a growth of approximately 15%[27] - The company emphasizes the importance of billings as a metric for future revenue health, with billings defined as revenue recognized plus changes in deferred revenue[22] - Total billings for the year ended December 31, 2024, were $6,532.5 million, compared to $6,399.5 million in 2023, indicating a growth of 2.1%[37] Profitability Metrics - GAAP net income for Q4 2024 was $526.2 million, compared to $310.9 million in Q4 2023[9] - Non-GAAP net income for Q4 2024 was $571.5 million, up from $392.0 million in Q4 2023[9] - The company reported a GAAP operating margin of 30.3% for the year ended December 31, 2024, up from 23.4% in 2023[33] - The company reported a non-GAAP operating margin of 35.0% for the year ended December 31, 2024, compared to 28.4% in 2023[33] Research and Development - Research and development expenses for the year ended December 31, 2024, were $716.8 million, an increase from $613.8 million in 2023[29] Future Projections - For Q1 2025, revenue is expected to be in the range of $1.500 billion to $1.560 billion[10] - For the fiscal year 2025, revenue is projected to be between $6.650 billion and $6.850 billion[15] Inventory Management - Inventory decreased to $315.5 million from $484.8 million, indicating improved inventory management[27] Geopolitical Risks - The ongoing geopolitical tensions, including the war in Ukraine, continue to pose risks to market demand and operational stability[19]

Financial Performance Highlights - Total revenue for Q4 2024 was $1.66 billion, representing a 17% increase year-over-year from $1.42 billion in Q4 2023 [6][7] - Product revenue for Q4 2024 was $574 million, up 18% year-over-year from $488.1 million in Q4 2023 [6][7] - Service revenue for Q4 2024 was $1.09 billion, an increase of 17.2% compared to $927 million in Q4 2023 [6][7] - Total billings for Q4 2024 reached $2.00 billion, a 7% increase from $1.86 billion in Q4 2023 [6][7] - For the full year 2024, total revenue was $5.96 billion, up 12% from $5.30 billion in 2023 [6][8] Profitability Metrics - GAAP operating margin for Q4 2024 was 34.6%, compared to 27.2% in Q4 2023 [7][9] - Non-GAAP operating margin for Q4 2024 was 39.2%, up from 32.0% in Q4 2023 [9][10] - GAAP net income for Q4 2024 was $526.2 million, compared to $310.9 million in Q4 2023 [9][10] - Non-GAAP net income for Q4 2024 was $571.5 million, up from $392 million in Q4 2023 [9][10] Growth in Key Areas - Unified SASE Annual Recurring Revenue (ARR) increased by 28% year-over-year to $1.12 billion [6][7] - Security Operations ARR grew by 32% year-over-year to $422.4 million [6][7] - The company achieved a record non-GAAP operating margin of 39% in Q4 2024, reflecting a strategic focus on high-growth markets [4][6] Cash Flow and Financial Health - Cash flow from operations for 2024 was $2.26 billion, compared to $1.94 billion in 2023 [6][16] - Free cash flow for 2024 was $1.88 billion, up from $1.73 billion in 2023 [6][16] - Remaining performance obligations as of December 31, 2024, were $6.42 billion, a 12% increase from $5.75 billion in 2023 [6][8] Market Position and Recognition - Fortinet was ranked 7 on the Forbes Most Trusted Companies in America 2025 list, being the only cybersecurity company in the top 50 [6][8] - The company continues to strengthen its position in the Secure Networking market while investing in Unified SASE and Security Operations [4][6]

Fortinet Inc FTNT will be reporting its fourth-quarter earnings on Thursday. Wall Street expects 61 cents in EPS and $1.59 billion in revenues as the company reports after market hours.The stock is up 54.65% over the past year, 10.14% YTD.Let’s look at what the charts indicate for Fortinet stock and how the stock currently maps against Wall Street estimates.Read Also: $100 Invested In Fortinet 15 Years Ago Would Be Worth This Much TodayFortinet Stock Strongly Bullish Ahead Of Q4 EarningsFortinet stock is di ...

Core Viewpoint - Fortinet has launched the FortiGate G series next-generation firewalls, which are designed to meet the demands of distributed enterprises by providing industry-leading security and performance through advanced technology and AI-powered services [1][2]. Product Features - The FortiGate G series includes the FortiGate 70G, 50G, and 30G, all powered by Fortinet's proprietary ASIC technology and FortiOS, delivering unmatched performance and security [1][2]. - The FortiGate 70G offers up to 11x higher IPsec VPN throughput and 7x higher firewall throughput than the industry average, while consuming significantly less power [5]. - FortiGuard AI-Powered Security Services enhance threat detection and response capabilities, providing real-time automated protection against advanced cyber threats [5][9]. Performance Metrics - The FortiGate 70G achieves a firewall throughput of 10.0 Gbps, IPsec VPN throughput of 7.1 Gbps, and threat protection throughput of 1.3 Gbps, with 1.4 million concurrent sessions and 100,000 connections per second [3][5]. - The FortiGate 50G provides a firewall throughput of 5.0 Gbps, IPsec VPN throughput of 4.5 Gbps, and threat protection throughput of 1.1 Gbps, supporting 720,000 concurrent sessions and 85,000 connections per second [7]. - The FortiGate 30G delivers a firewall throughput of 4.0 Gbps, IPsec VPN throughput of 3.5 Gbps, and threat protection throughput of 0.5 Gbps, with 600,000 concurrent sessions and 30,000 connections per second [8]. Energy Efficiency - The FortiGate 70G consumes a maximum of 8.9 Watts, achieving 62x fewer watts per Gbps of IPsec VPN throughput compared to competitors [5][6]. - The FortiGate 50G also demonstrates energy efficiency with a maximum power consumption of 8.9 Watts, consuming 20x fewer watts per Gbps of IPsec VPN throughput [7]. - The FortiGate 30G has a maximum power consumption of 8.2 Watts, achieving 41x fewer watts per Gbps of firewall throughput compared to competitors [8]. Strategic Positioning - Fortinet emphasizes the importance of integrating networking and security into a unified cybersecurity platform, which is exemplified by the Fortinet Security Fabric that supports the FortiGate G series [9][10]. - The company aims to redefine the standard for next-generation firewalls by focusing on superior security effectiveness, energy efficiency, and performance [2][9].

Have you been paying attention to shares of Fortinet (FTNT) ? Shares have been on the move with the stock up 6.5% over the past month. The stock hit a new 52-week high of $102.17 in the previous session. Fortinet has gained 6.8% since the start of the year compared to the 33.9% move for the Zacks Computer and Technology sector and the 49.6% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't misse ...

Core Insights - Fortinet Inc (NASDAQ:FTNT) reached a record high of $102.17, surpassing the $100 resistance level, with potential for further gains as it historically performs well in February [1] - The stock has historically finished February higher nine out of the last ten years, averaging a 9% gain, which could push shares above $111, contributing to a 55% year-over-year increase [2] - There is a prevailing pessimism among analysts, with 23 out of 37 maintaining a "hold" or worse rating, while the 12-month consensus price target is $98.84, slightly below current levels [3] Options Activity - The popularity of put options has increased, with a 10-day put/call volume ratio of 1.79, ranking higher than 91% of readings from the past year [4] Earnings Outlook - The company is expected to experience volatility around its earnings report scheduled for February 6, but its recent post-earnings performance has been positive, with the stock closing higher after three quarterly reports last year, including a notable 25.4% increase in August [5]

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][2]. Company Overview: Fortinet (FTNT) - Fortinet currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4]. - The stock has shown a price increase of 2.83% over the past week, outperforming the Zacks Internet - Software industry, which rose by 1.86% during the same period [6]. - Over the past quarter, Fortinet shares have increased by 22.74%, and over the last year, they have gained 45.63%, significantly outperforming the S&P 500's increases of 3.88% and 24.54%, respectively [7]. Trading Volume - Fortinet's average 20-day trading volume is 3,401,035 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, three earnings estimates for Fortinet have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $2.20 to $2.24 [10]. - For the next fiscal year, six estimates have moved upwards with no downward revisions, indicating positive sentiment regarding future earnings [10]. Conclusion - Considering the positive momentum indicators and earnings outlook, Fortinet is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12].

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks but high Style Scores may still face downward earnings forecasts, increasing the risk of price declines [10] Company Spotlight: Fortinet (FTNT) - Fortinet, headquartered in Sunnyvale, CA, specializes in network security solutions and holds a Zacks Rank of 2 (Buy) with a VGM Score of B [11] - The company has a Momentum Style Score of B, with shares increasing by 1.7% over the past four weeks [11] - Recent analyst revisions have raised Fortinet's earnings estimate for fiscal 2024 by $0.04 to $2.24 per share, with an average earnings surprise of 23.6% [12]

Core Insights - Fortinet's shares have increased by 68.8% over the past six months, significantly outperforming the Zacks Computer & Technology sector's growth of 14.8% and the Zacks Internet - Software industry's return of 31.5% [1] - The company has outperformed key competitors in the cybersecurity market, including Cisco Systems, Palo Alto Networks, and Check Point Software Technologies, which saw share price increases of 31.5%, 16.5%, and 6% respectively [2] Company Performance - Strong demand for Fortinet's cybersecurity solutions is attributed to the robust Fortinet Security Fabric platform and its cloud-based offerings, contributing to the positive movement in share price [3] - Fortinet's Secure Networking solutions integrate networking and security through FortiOS, delivering up to 5x better performance than competitors [4] - The flagship product, FortiGate, continues to see robust adoption, significantly driving revenue growth [5] Business Segments - In Q3 2024, Unified SASE accounted for 23% of Fortinet's business, with a 130% increase in the pipeline, highlighting the company's unique position in offering a complete SASE solution [6] - A notable upsell deal in Q3 2024 involved a retail customer expanding its SD-WAN deployment to include FortiSASE for 16,000 users, showcasing the value of the FortiOS platform [8] - An eight-figure deal with a multinational bank was secured to protect its hybrid architecture, emphasizing Fortinet's strength in safeguarding large-scale enterprises [9] Financial Outlook - For Q4 2024, Fortinet expects revenues between $1.56 billion and $1.62 billion, with non-GAAP earnings projected at 58-62 cents per share, indicating a year-over-year revenue growth of 12.59% [10] - For the full year 2024, revenues are projected between $5.86 billion and $5.92 billion, with non-GAAP earnings expected to be $2.20-$2.28 per share, reflecting an 11.01% year-over-year growth in revenues [12] - Fortinet has a history of strong quarterly performance, with earnings surpassing estimates in the last four quarters, averaging a surprise of 23.58% [12] Strategic Initiatives - Fortinet plans to announce GenAI for FortiAI in early 2025, aiming to enhance AI-based security operations and integrate generative AI across its product portfolio [7] - The company's cutting-edge AI security solutions and expanding customer base position it for strong growth, currently holding a Zacks Rank 2 (Buy) and a Growth Score of A [13]

Group 1 - Fortinet (NASDAQ: FTNT) is considered a strong investment opportunity despite competition in the cybersecurity sector from companies like CrowdStrike (CRWD) and Palo Alto Networks (PANW) [1] - The market is perceived to be underestimating Fortinet's potential, indicating a possible undervaluation [1] Group 2 - The author, Motti Sapir, has over 15 years of experience in financial markets and focuses on simplifying complex financial concepts [1] - The goal is to help investors understand market trends and make informed investment decisions [1]