| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 13 | 55.0x | 17.8x | Bottom tier | |
Growth | 78 | 18.8% | 7.1% | Top tier | |
Quality | 96 | 74.1% | 4.5% | Top tier | |
Safety | 80 | — | 2.6x | Top tier | |
Capital Return | 63 | — | 2.12% | Around median | |
Momentum | 98 | 102.5% | 2.9% | Top tier | |
Sentiment | 43 | 25 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Fortinet develops cybersecurity solutions centered on network security, combining FortiGate firewalls, FortiASIC technology, and the FortiOS platform within a unified architecture. Its portfolio includes secure networking, Unified SASE, and AI-powered security operations, with cloud, on-premises, and sovereign data-processing options. The company generates revenue from product sales, particularly FortiGate appliances, and from recurring services such as FortiCare, FortiGuard, FortiSASE, and security operations solutions.
In Q2 fiscal 2026, revenue increased 26% to $2.05 billion, exceeding the market consensus of $1.89 billion, while revenue reported in EDGAR data was approximately $2.0 billion and net income was $606.3 million. Product revenue jumped 52% to $773 million, or about 38% of total revenue, while service revenue grew 14% to $1.27 billion, or about 62% of the total. GAAP gross margin was 80.2%, and non-GAAP operating margin reached a record second-quarter level of 38%, up 490 basis points.
GAAP earnings per share were $0.82 in Q2 fiscal 2026, up 44%, while non-GAAP earnings per share increased 41% to $0.90. Billings rose 33% to $2.37 billion, and deferred revenue increased 17%, while free cash flow exceeded $966 million after more than tripling. The company repurchased 1.9 million shares for $146 million during the quarter, and its purchases since the beginning of fiscal 2026 totaled approximately 12.5 million shares for $973 million.
The average analyst price target is $159.39, approximately 7.4% below the 52-week high of $172.09, while the broad target range spans $100 to $203 and is accompanied by a Neutral consensus. No specific earnings multiple is available in the data, so the comparable valuation centers on the breadth of the target range and Fortinet's ability to achieve its fiscal 2026 outlook of $8.02 billion to $8.18 billion in revenue and $3.41 to $3.47 in non-GAAP earnings per share.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Revenue increased 26% to $2.05 billion, while billings grew 33% to $2.37 billion. Products were the fastest-growing driver, with revenue jumping 52% to $773 million due to growth in FortiGate units and the shift to higher-performance models. Unified SASE billings also grew 35%, and operational technology security billings increased by more than 55%.
The company expects fiscal 2026 revenue between $8.02 billion and $8.18 billion and billings between $9.35 billion and $9.55 billion. It expects service revenue between $5.18 billion and $5.22 billion and non-GAAP earnings per share between $3.41 and $3.47. Q3 fiscal 2026 guidance includes revenue between $2.01 billion and $2.10 billion and a non-GAAP operating margin between 35% and 37%.
The strategy combines secure networking and Unified SASE on the same FortiOS system, leveraging FortiASIC and the company's global infrastructure. FortiGate 1200G enables local security processing while using cloud security services, addressing performance and data sovereignty requirements. In Q2 fiscal 2026, Unified SASE billings grew 35%, while FortiSASE billings growth exceeded 100%.
Automated analysis for informational purposes only — not investment advice.
The company stated that customers are upgrading their infrastructure to protect AI workloads and data traffic within data centers. In Q2 fiscal 2026, Fortinet signed an eight-figure deal with a cloud provider hosting generative AI workloads, following a seven-figure deal with the same customer in Q1 fiscal 2026. AI-powered security operations billings also grew 25%, and the platform includes more than 20 AI-enabled solutions.
Service revenue was $1.27 billion in Q2 fiscal 2026, representing about 62% of total revenue, and grew 14%. This revenue includes FortiCare and FortiGuard services, SecOps solutions, and services associated with FortiGate and FortiSASE products. The company expects service revenue between $5.18 billion and $5.22 billion in fiscal 2026, but it needs to achieve the expected acceleration in the second half after describing the first quarter as the bottom of the growth rate.
The analyst consensus on FTNT is Neutral, with an average price target of $159.39. The target range spans $100 to $203, compared with a 52-week range of $73.55 to $172.09. The average target is approximately 7.4% below the 52-week high, reflecting that the strong Q2 fiscal 2026 results are offset by concerns about slowing growth and divergent valuation estimates.
