Core Insights - Fortinet is heavily investing in infrastructure to transition towards a cloud- and service-first growth model, with Q2 2025 infrastructure spending reaching $168 million, a $145 million increase year-over-year [1][9] - The demand for cloud-delivered security is increasing, leading Fortinet to raise its full-year billings outlook by $100 million, with projected revenues for 2025 between $6.67 billion and $6.82 billion [2][9] - Fortinet has invested nearly $2 billion in building a global footprint of 5 million square feet across various facilities, enhancing customer experience and operational efficiency [3] - The infrastructure expansion is a strategic move to capture growth in the expanding cybersecurity market [4] Infrastructure Investments - Fortinet's management has guided infrastructure investments of $380 million to $430 million for 2025, emphasizing its importance for long-term growth [1][9] - The company is focusing on controlling its own infrastructure to optimize performance and deliver tailored services to enterprise customers [2] Competitive Landscape - Zscaler, a competitor, operates 150 global data centers and focuses on a SaaS model, which provides it with an edge in cloud security, although it lags behind Fortinet in hardware performance [5] - Cisco Systems is also evolving rapidly in the cloud infrastructure space, with significant acquisitions and investments aimed at enhancing its competitive position [6] Financial Performance - Fortinet's shares have declined 14.3% year-to-date, underperforming the Zacks Security industry's 12.6% gain and the broader Computer and Technology sector's 18.8% rise [7] - The consensus estimate for 2025 earnings is $2.52 per share, reflecting a 6.33% year-over-year growth [13]