FTNT Fortinet Inc.
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Software - Infrastructure · Sunnyvale, CA · 15,472 employees · fortinet.com
Fortinet provides integrated cybersecurity and secure networking solutions to organizations globally. The company sells hardware and software that combine network traffic management with threat protection, including proprietary firewalls, unified access architectures, and cloud security platforms. It generates revenue through sales of these security appliances alongside subscriptions to threat intelligence and technical support services.
Bull case
Fortinet converts a substantial portion of its revenue into free cash flow after accounting for stock-based compensation, supported by a profitable operating model with cash reserves exceeding its debt. The company also repurchases its own stock to steadily reduce its outstanding share count.
- Turns 39% of revenue into free cash after stock pay.
- Annual revenue growth rose from +14% to +19%.
- It holds more cash than debt and is profitable.
- The share count fell 4.2% over the past year.
Bear case
The measurements do not currently make a case against the business.
- Trades at the 97th percentile of its own valuation history.
- The price assumes about +19% a year cash-flow growth, more than the +19% a year it delivered.
Features
- V-OVERVALUED Overvalued The price is 63% above its own-history reference value.
- V-ACCELERATING Growth accelerating Annual revenue growth rose from +14% to +19%. Shared by most companies we track
- H-FORTRESS Fortress balance sheet It holds more cash than debt and is profitable.
- H-CANNIBAL Share cannibal The share count fell 4.2% over the past year.
- F-ANALYST-BEARISH Analysts cautious Only 20% of analysts rate it positively.
AI impact
Supplies what AI runs on Cuts both ways
Fortinet sells secure networking hardware and cybersecurity software, benefiting from demand for high-performance networking equipment deployed in artificial intelligence infrastructure. However, the company faces risks that competitors incorporating artificial intelligence more rapidly or effectively into their products could reduce demand for its offerings.
Where AI helps it
- Sells what AI workloads consume (minor)
Where AI could hurt it
- AI tools could do part of what it sells (minor)
In the company's words
We experienced product revenue growth across our hardware products and software licensing, which mainly benefited from growth in secure networking hardware products and term licenses, including increased demand for higher performance products, deployments related to AI infrastructure, technology…
Our AI efforts may not be successful and our competitors may incorporate AI into their products more quickly or more successfully than us, which could impair our ability to compete effectively, reduce demand for our products and services and adversely affect our financial results.
Assessed by AI from the company's own annual report filed 25 Feb 2026 and quarterly report filed 30 Jul 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
FTNT is at the 97th percentile of its own valuation history. Depending on how far back you look, it ranges from the 97th to the 100th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +19.4% annual cash-flow growth, between +12.0% and +24.9% under other reasonable assumptions. Over the last three years it delivered +18.5% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.