Key Takeaways FTNT's multi-year deals, per-user pricing, and SASE traction are boosting long-term revenue visibility. Unified SASE recurring revenues grew 25.7% YoY to $1.15B, while SecOps rose 30.3% to $434.5M. Unified SASE and SecOps are projected to witness a 24% CAGR through 2026, per Seeking Alpha.Fortinet’s (FTNT) transition to a subscription-driven business signifies the growth of its recurring service revenues. These recurring-revenue upticks have become a clear engine for growth. In the first qua ...

Core Insights - Fortinet's share prices increased by 74% over the past year, significantly outperforming the Nasdaq Composite index's 17% gain [1] - Despite exceeding revenue and earnings expectations in Q1 2025, Fortinet's stock price fell due to lukewarm guidance [2] Financial Performance - Fortinet's Q1 revenue grew by 14% year over year, while adjusted earnings surged by 35% [4] - The company's remaining performance obligations (RPO) for unified SASE grew by 19% year over year, compared to 12% growth in overall RPO [6][7] - Fortinet's total RPO reached $6.5 billion, with SecOps and unified SASE accounting for nearly one-third of this total [9] Market Opportunities - The SecOps market is projected to nearly double over the next decade, potentially generating $84 billion in annual revenue by 2034 [8] - Fortinet anticipates $1.62 billion in revenue for the current quarter, reflecting a 13% increase from the previous year [10] - Analysts expect Fortinet's earnings to grow at a faster pace in 2027, with raised earnings guidance for 2025 and 2026 [11] Valuation Concerns - Fortinet's stock trades at 42 times earnings, which is considered expensive compared to the Nasdaq-100 index's earnings multiple of 29 [13] - The company's valuation requires a stronger growth profile to justify current levels, leading some investors to seek better entry points [14]