Core Insights - Fortinet (FTNT) is experiencing significant growth driven by the rising demand for Unified SASE and SecOps, with Unified SASE billings increasing by 21% year over year and SecOps billings rising by 31% in Q2 2025, together accounting for approximately 35% of total billings [1][10] - The company has raised its full-year billings outlook midpoint by $100 million, reflecting strong enterprise adoption and demand for cloud-delivered services [3][10] - Fortinet's unique position as the only vendor to develop all core SASE capabilities within a single operating system, FortiOS, enhances its competitive edge by reducing cost and complexity [4] Financial Performance - Projected revenues for 2025 are expected to grow by 12.8% year over year to $6.72 billion, with total billings anticipated to increase by 13.9% to $7.44 billion, highlighting the momentum from SASE and SecOps as long-term growth drivers [5] - The consensus estimate for 2025 earnings is $2.51 per share, indicating a year-over-year growth of 5.91% [14] Competitive Landscape - Cisco Systems (CSCO) leverages its network dominance to provide integrated security solutions, focusing on large enterprises with advanced threat protection and scalability, contrasting with Fortinet's cost-effective approach [6] - Check Point Software (CHKP) is recognized for its Infinity Platform and emphasizes real-time threat prevention, often outperforming Fortinet in malware and phishing benchmarks, thus strengthening its market position [7] Market Performance - Year to date, FTNT shares have declined by 19%, underperforming the Zacks Security industry's gain of 8.6% and the Zacks Computer and Technology sector's rise of 11.8% [8][11]

Core Insights - The cybersecurity market is projected to grow significantly, reaching $351.9 billion by 2030, with Fortinet and Qualys as key players addressing critical security needs [1][2] - Organizations are increasing their security budgets by 15% in 2025 due to escalating cyber threats [2] Fortinet (FTNT) - Fortinet reported a revenue growth of 14% year-over-year to $1.63 billion in Q2 2025, with billings increasing by 15% to $1.78 billion [4] - The company maintains a strong market position with its Security Fabric platform and leadership in network firewalls, but faces challenges in sustaining growth momentum [4][5] - Following its earnings announcement, Fortinet's stock dropped 17% in after-hours trading, indicating investor concerns about future growth despite beating earnings estimates [5] - The guidance for Q3 revenues is between $1.67 billion and $1.73 billion, suggesting a moderation in growth trajectory [5] - The consensus mark for 2025 earnings is $2.51 per share, indicating a 5.91% year-over-year growth [6] Qualys (QLYS) - Qualys demonstrated a 10% revenue growth to $164.1 million in Q2 2025, with 82% GAAP gross margins, showcasing operational efficiency [7] - The launch of the AI-powered Risk Operations Center positions Qualys as a leader in next-generation threat management, with the ability to reduce risk exposure by 85% and accelerate remediation by 70% [7] - Qualys raised its 2025 revenue guidance to $656-662 million, representing 8-9% growth, while maintaining strong profitability metrics [9] - The consensus mark for 2025 earnings is $6.35 per share, indicating a 3.59% year-over-year growth [10] Valuation and Performance Comparison - Fortinet trades at a P/E ratio of 30.18, while Qualys trades at a more attractive P/E ratio of 19.88, indicating better relative value for Qualys [11][8] - Fortinet's stock has dropped over 25% from its 52-week high and is down 14.5% year to date, while Qualys has shown more stability with a decline of 6.8% year to date [14] Conclusion - Qualys is viewed as a more compelling investment opportunity due to its innovative AI-driven platform, superior margins, and attractive valuation [18] - The focus on autonomous risk management positions Qualys for accelerated growth in the face of increasing security threats [18]