FortiGate 700G series

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Fortinet Stock Before Q2 Earnings: Buy Now or Wait for Results?
ZACKS· 2025-08-04 17:31
Core Insights - Fortinet (FTNT) is expected to report second-quarter 2025 results on August 6, with revenue projections between $1.59 billion and $1.65 billion, and non-GAAP earnings per share anticipated in the range of 58 to 60 cents, reflecting a year-over-year revenue growth of 12.9% [1][2] Financial Performance - The Zacks Consensus Estimate for second-quarter revenues is $1.62 billion, indicating a year-over-year growth of 12.9% [1] - The consensus estimate for earnings per share is 59 cents, showing a year-over-year increase of 3.51% [2] - Fortinet achieved a record first-quarter revenue of $1.54 billion, with a 14% growth and a record operating margin of 34% [5][10] Product Launches and Innovations - Fortinet launched the FortiGate 700G series, which offers up to 7 times higher firewall throughput and 4 times better threat protection compared to competitors, while consuming 7 times less power per gigabit [6][10] - The company also introduced an advanced AI-powered workspace security suite, enhancing its product portfolio [9] Market Position and Growth - Fortinet's strategic focus areas, such as Unified SASE, saw billings increase by 18%, accounting for 25% of total business, while AI-driven secure operations billings surged by 29% [5][10] - The company maintained its position as the number one deployed firewall vendor globally and a market leader in SD-WAN and OT security [10] Revenue Estimates by Region - Estimated revenues for the Americas in Q2 2025 are projected at $664.8 million, reflecting an 11.7% growth year-over-year [12] - Estimated revenues for Asia Pacific and Japan are pegged at $324.6 million, indicating an 18.6% growth year-over-year [12] - Estimated revenues for Europe, the Middle East, and Africa are projected at $629.5 million, suggesting an 11.4% decrease year-over-year [13] Stock Performance and Valuation - Fortinet's shares have gained 4.9% year-to-date, outperforming the Computer and Technology sector and the S&P 500 index [14] - The stock is trading at a significant premium, with a Price/Book ratio of approximately 37.97 compared to the industry's 17.52, reflecting high growth expectations [16] Investment Considerations - Despite premium valuation, Fortinet's record-setting first-quarter performance and strategic product launches position it for strong second-quarter results [18] - The company’s strong customer acquisition, exceeding 6,300 new logos, and robust free cash flow generation provide a solid foundation for continued outperformance [18][19]
Can Cybersecurity Boom Push FTNT Stock Past its 10.5% Gain in 6 Months?
ZACKS· 2025-07-17 17:50
Core Insights - Fortinet (FTNT) stock has shown resilience with a 10.5% gain over six months, outperforming the broader Zacks Computer and Technology sector's 6.8% return, indicating underlying strength in a challenging market environment [1][9] - The company reported record operating margins of 34% and billing growth of 14% year-over-year in Q1 2025, with total revenues reaching $1.54 billion, driven by strong demand for its cybersecurity products and services [2][15] - Fortinet's competitive positioning has been enhanced by its recognition as a Leader in the 2025 Gartner Magic Quadrant for SASE Platforms, which is expected to drive significant growth [6] Financial Performance - Total revenues grew 14% to $1.54 billion, with product revenue growth of 12% and service revenues of $1.08 billion growing 14%, making up 70% of total revenues [2] - The company achieved record free cash flow of $783 million with a margin of 51%, and total gross margin increased by 380 basis points to 81.9% [14] - Management expects full-year billings between $7.2 billion and $7.4 billion, indicating a 12% growth at the midpoint, with revenue growth of 13% and service revenue growth of 15% [15] Market Position and Growth Catalysts - Fortinet's SASE strategy is gaining traction, with unified SASE building growth of 18%, accounting for 25% of total business, and security service edge building growth exceeding 110% [7] - The upcoming firewall refresh cycle is anticipated to accelerate in the second half of 2025, representing a substantial revenue opportunity as organizations upgrade their security infrastructure [12] - The introduction of the FortiGate 700G series showcases Fortinet's ability to leverage the refresh cycle, offering a performance advantage of 5x to 10x over competitors [13] Innovation and Strategic Advantages - Fortinet holds over 500 issued and pending AI patents, more than any competitors, with AI technology integrated into a dozen products, creating a competitive edge in performance and cost of ownership [10] - The Security Fabric platform strategy is resonating with enterprise customers, with AI-driven secure operations growing by 29% and deals over $1 million rising by 30% [11] - The convergence of growth catalysts, including the firewall refresh cycle, SASE market expansion, and AI-driven solutions, positions Fortinet for accelerated growth in the latter half of 2025 [20] Investment Outlook - Despite a high Price/Book ratio of 40.34, Fortinet's strategic positioning in high-growth cybersecurity segments justifies its premium valuation [17] - The company's leadership in SASE, AI integration, and platform convergence creates multiple avenues for sustained growth and market share expansion [17] - Fortinet is recommended as a core holding for investors seeking exposure to the cybersecurity boom, supported by its comprehensive platform approach and proven market execution [21]
FTNT vs. CHKP: Which Network Security Stock is the Better Pick?
ZACKS· 2025-07-09 17:01
Core Insights - The cybersecurity landscape is rapidly evolving, with network security being a critical priority for enterprises globally. Fortinet (FTNT) and Check Point Software Technologies (CHKP) are leading providers of network security solutions, offering comprehensive platforms to protect organizations from sophisticated threats [1][2] Group 1: Company Performance - Fortinet is experiencing exceptional growth momentum across multiple business segments, with a unified SASE strategy gaining traction, leading to security service building growth exceeding 110% and unified SASE representing 25% of total business [4][6] - Fortinet's Quantum Force appliances have driven product revenues up by 14% year over year, with 73% of large enterprise customers adopting their SD-WAN solution, facilitating FortiSASE expansion [5] - Check Point's Quantum Force appliances show strong demand, with revenues exceeding the midpoint of guidance ranges, and the Infinity platform demonstrating over 15% of total revenues with strong double-digit growth year over year [8][11] Group 2: Leadership and Strategy - Fortinet is well-positioned for growth with a record free cash flow of $783 million and a margin of 51%, benefiting from an anticipated firewall refresh cycle in the second half of 2025 [6] - Check Point is under new CEO Nadav Zafrir's leadership, implementing a transformation strategy focused on growth and enhancing go-to-market capabilities, including a strategic partnership with Wiz for cloud security [9][10] Group 3: Financial Metrics and Valuation - Fortinet's Zacks Consensus Estimate for 2025 earnings is $2.48 per share, indicating a growth of 4.64% year-over-year, while Check Point's estimate is $9.91 per share, reflecting an 8.91% growth year-over-year [7][12] - Fortinet's shares gained 11.6% in three months, outperforming Check Point's 5.8% return, with both stocks trading at premium valuations; Fortinet has a price-to-sales ratio of 11.5x compared to CHKP's 8.91x [13][15] Group 4: Investment Outlook - Fortinet is identified as the superior investment choice for 2025 due to stronger revenue growth momentum, a better-positioned SASE strategy, and clear catalysts like the firewall refresh cycle [19] - Check Point offers stability and transformation potential but faces execution risks and a slower growth trajectory, suggesting investors may consider holding existing positions or waiting for more attractive entry points [19]
Fortinet Expands Hybrid Mesh Firewall Portfolio with FortiGate 700G
Globenewswire· 2025-05-07 13:00
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]