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Fortinet
NASDAQ: FTNT Technology IT 🔎 Screen
S&P 500 Nasdaq 100
🏹 Trader: 🚀 Stage 2 + Near High 📈 Stage 2 🎯 Near 52W High | BRS 79 Ready View all →
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$116.4B
Market Cap
32.8
P/E
2.01
PEG
21.5%
ROCE
135.0%
ROE
0.40
D/E
30.7%
OPM
-8.7%
% from 52W High
90
α RS
🔍 FTNT is showing a high-conviction setup because it matches 25 of 37 tracked screener presets, RS Rating is 90 (top decile vs market), and an ECS of 59.6 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 25/37 · RS Rating 90 · ECS 59.6
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🌏 Global Investor Returns
Currency-adjusted total returns for FTNT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 61.4K $5.0M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$2.05B
+26% YoY
Product Revenue
$773M
+52% YoY
Billings
$2.37B
+33% YoY
Non-GAAP Operating Margin
38.0%
+490 bps YoY
Non-GAAP EPS
$0.90
+41% YoY
GAAP EPS
$0.82
+44% YoY
What Went Right
  • Revenue grew 26% YoY to $2.05B, with product revenue jumping 52% to $773M on strong FortiGate unit and ASP growth.
  • Billings grew 33% to $2.37B, with all three pillars accelerating: Secure Networking +34%, Unified SASE +35%, AI-driven SecOps +25%.
  • Non-GAAP operating margin hit a Q2 record of 38%, up 490bps, while free cash flow more than tripled to $966M.
What to Watch
  • Management guided a high single-digit billings impact from price increases in 2H26 and stressed no pull-forward or excess inventory risk.
  • Service revenue growth was only 14% YoY, though management said Q1 2026 was the trough and expects improving growth.
  • Management declined to provide 2027 visibility, saying detailed guidance would only come in January/February.
Management Guidance
  • Q3 2026 revenue: $2.010B-$2.100B; billings: $2.250B-$2.350B.
  • Q3 2026 non-GAAP operating margin: 35%-37%; non-GAAP EPS: $0.83-$0.87.
  • FY2026 raised: revenue $8.020B-$8.180B; billings $9.350B-$9.550B; service revenue $5.180B-$5.220B; non-GAAP EPS $3.41-$3.47.
Investor Lens
The bull thesis is clearly stronger after this call: growth accelerated across all pillars, margins reached record levels, cash flow more than tripled, and guidance was raised. The new 'SASE Firewall' narrative positions Fortinet against both next-gen firewall and cloud-only SASE vendors, with management arguing the addressable market is 2-3x larger. The main watch items are 2H price increase impacts and the durability of >50% product growth into 2027. Overall, Fortinet appears to be gaining share while improving profitability, making the stock's fundamental narrative more compelling.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong beat: revenue +26%, billings +33%, record 38% operating margin.
Revenue
Total revenue was $2.05B, up 26% YoY and above the high end of guidance. Product revenue surged 52% to $773M, while service revenue rose 14% to $1.27B and billings grew 33% to $2.37B.
Profitability
Non-GAAP EPS grew 41% YoY to $0.90 and GAAP EPS grew 44% to $0.82, both comfortably exceeding guidance. Operating leverage translated strongly into the bottom line.
Margins
Non-GAAP gross margin was 80.9%, above the guided range, while GAAP gross margin was 80.2%. Non-GAAP operating margin was a record 38%, up 490bps, with GAAP operating margin at 33.7%.
Balance Sheet
Free cash flow more than tripled to $966M, and adjusted free cash flow was $996M, representing a 49% margin. Fortinet repurchased $146M of stock in Q2 and $973M year-to-date, with $766M remaining on the authorization.
Key Risks
Management noted price increases have a high single-digit impact on 2H26 billings assumptions. Memory and component costs continue to drive monthly price adjustments, and service revenue growth will depend on sustained attach rates. Management declined to give early 2027 visibility.
Outlook
For Q3 2026, Fortinet guided revenue of $2.010B-$2.100B and non-GAAP EPS of $0.83-$0.87. For FY2026, the company raised revenue guidance to $8.020B-$8.180B, billings to $9.350B-$9.550B, and non-GAAP EPS to $3.41-$3.47.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Q2 2026 saw billings up 33% and revenue up 26% year-over-year, with product revenue surging 52% and free cash flow tripling to $966M. Strong demand across Secure Networking, SASE, and OT, plus new AI-driven solutions, led to raised full-year guidance and record margins.
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw billings up 31% and revenue up 20%, with strong growth in Secure Networking, OT, and SASE segments. Record free cash flow and robust margins led to raised full-year guidance, driven by AI adoption and platform differentiation.
Q4 2025 Q4 2025 2026-02-05
Q4 and full-year results exceeded guidance, with 18% billings and 15% revenue growth in Q4, driven by strong Unified SASE and Secure Networking demand. Operating and gross margins remained robust, and 2026 guidance projects continued double-digit growth, supported by product innovation and disciplined capital allocation.
Q3 2025 Q3 2025 2025-11-05
Third-quarter billings and revenue grew 14% year-over-year, with record operating margins and strong SaaS momentum. Guidance calls for continued double-digit growth, robust cash flow, and ongoing market share gains across all business pillars, supported by innovation and integrated solutions.
Q2 2025 Q2 2025 2025-08-06
Q2 saw 15% billings and 14% revenue growth, with strong enterprise demand and expanding SASE and AI-driven segments. Guidance for the year was raised, margins remained robust, and significant investments in infrastructure and innovation continue to drive growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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