NASDAQ: FTNT · Systems Software
Fortinet
Fortinet is a cybersecurity company that converges networking and security. Its Fortinet Security Fabric platform spans secure networking (led by FortiGate network firewalls), unified SASE and AI-driven security operations, sold mostly through distributors and resellers to end-customers in over 100 countries. 2025 revenue was $6,800 million (+14%) — product $2.22 billion and service $4.58 billion — with operating income of $2,085 million and net income of $1,853 million. Revenue grew 26% to $2.05 billion in the second quarter of 2026. It anticipates a significant firewall refresh cycle; a consolidated securities class action over earlier refresh-cycle statements is pending.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 15:14 (SEC EDGAR) · Source 10-K filed: February 25, 2026
Built on10-K FY2025 · filed 2026-02-2510-Q (quarter ended 2026-09-30) · filed 2026-10-30Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 21.3%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 30.7%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +63.6 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- -0.7x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.40x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- —
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 42.4x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.13
Higher than 88% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 83% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 99% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 10% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 41% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$130.32close on 2026-11-04
Market cap$96.83B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 42.4x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 78.2x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 42.6x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 2.3%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- —
At FY2025 year-end: 32.8x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 47.7x
Book value at FY2025 year-end
At FY2025 year-end: 25.7x
EBITDA for FY2025
At FY2025 year-end: 3.8%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$1.72B → $2.08B (vs. a year earlier)↑ +20.5%$1.72B → $2.08B (vs. a year earlier)
- Operating margin31.7% → 33.9% (vs. a year earlier)↑ +2.2 pts31.7% → 33.9% (vs. a year earlier)
- Net income$474M → $636M (vs. a year earlier)↑ +34.1%$474M → $636M (vs. a year earlier)
- Diluted EPS$0.62 → $0.86 (vs. a year earlier)↑ +38.7%$0.62 → $0.86 (vs. a year earlier)
- Cash$2.93B → $3.75B (vs. previous quarter-end)↑ +27.8%$2.93B → $3.75B (vs. previous quarter-end)
- Long-term debt$497M → $497M (vs. previous quarter-end)→ +0.0%$497M → $497M (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 28, 2026.
Management outlook ↑ Raised
Raised 2026 revenue guidance to 20% growth. Source sentence
Raises 2026 revenue guidance to 20% year over year growth
Key changes
Q3 revenue up 20% to $2.08B. Source sentence
Revenue grew 20% year over year to $2.08 billion
Product revenue up 37% to $765M. Source sentence
Product revenue grew 37% year over year to $765 million
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- Fortinet, Inc.
- Headquarters
- SUNNYVALE, CA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: FTNT
- Industry
- Systems Software
- CIK
- 1262039
- Website
- https://www.fortinet.com/ ↗
Workforce (as of FY2025 year-end)
Employees
15,109
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 36–37 days after quarter end (Feb 5, 2026; Feb 6, 2025; Feb 6, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 28–38 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 28, 2026 (+28 days) | Oct 30, 2026 10-Q (+30 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 29, 2026 (+29 days) | Jul 30, 2026 10-Q (+30 days) |
| Q1 FY2026 | Mar 31, 2026 | May 6, 2026 (+36 days) | May 8, 2026 10-Q (+38 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 5, 2026 (+36 days) | Feb 25, 2026 10-K (+56 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 5, 2025 (+36 days) | Nov 7, 2025 10-Q (+38 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 6, 2025 (+37 days) | Aug 8, 2025 10-Q (+39 days) |
| Q1 FY2025 | Mar 31, 2025 | May 7, 2025 (+37 days) | May 8, 2025 10-Q (+38 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 6, 2025 (+37 days) | Feb 21, 2025 10-K (+52 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 7, 2024 (+38 days) | Nov 8, 2024 10-Q (+39 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 6, 2024 (+37 days) | Aug 8, 2024 10-Q (+39 days) |
| Q1 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 6, 2024 10-Q (+36 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 6, 2024 (+37 days) | Feb 26, 2024 10-K (+57 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Secure networking
FortiGate network firewalls
Firewalls deployed at branch, campus, data center, internal segmentation and cloud for hybrid mesh firewall solutions.
Unified SASE
FortiSASE
Cloud-delivered secure access service edge.
Security operations
AI-driven SecOps
Security operations offerings within the Fortinet Security Fabric.
Services
Security subscriptions and support
FortiGuard security services, support and other services.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
The 10-K calls Fortinet “a leader in cybersecurity” but states no market share or rank.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-09-30)
07
Recent strategic focusSite analysis
Recent developments.
2025 results
Revenue $6.80B (+14%); product $2.22B (+16%); service $4.58B (+13%); headcount rose 7% to 15,109.
Source: Form 10-K (FY2025)
Q3 2026
Revenue $2.08B (+20%), product revenue $765M (+37%), billings $2.34B (+29%); GAAP operating margin 34%; EPS $0.86; free cash flow $865M. Fortinet raised 2026 revenue guidance to 20% growth and billings guidance for the third time, and added $1.2B to its buyback authorization ($2B remaining).
Source: Q3 2026 earnings release
Capital return
Board added $1.0B to the repurchase program in August 2025 and another $1.0B in January 2026.
Source: Form 10-K (FY2025)
Capex ÷ D&A (FY2025)
2.40x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$365M ÷ $152M = 2.40x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
12.0%
formularesearch & development expense ÷ revenue × 100
e.g.$816M ÷ $6,800M × 100 = 12.0%
M&A spend (6-year total)
$463M
Latest year: $42M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $126M in FY2020 to $365M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$6.8B
As reported in the 10-K
Revenue CAGR (5 years)
+21.3%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($6,800M ÷ $2,594M) ^ (1÷5) − 1 = 21.3%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
30.7%▲favorable
+10.2pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$2,085M ÷ $6,800M × 100 = 30.7%
ROE (FY2025)
135.7%▲favorable
6-year average: 89.0%
As reported in the 10-K
P/B (FY2025 end)
47.68x
formulafiscal year-end closing price ÷ book value per share
e.g.$79.41 ÷ $1.67 = 47.68x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
25.7x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($59,002M + $996M − $2,495M) ÷ ($2,085M + $152M) = 25.7x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +21.3% a year over 5 years (strong growth)
From $2.59B in FY2020 to $6.8B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 20.5% → 30.7%
How much operating profit is left per $100 of revenue. It moved +10.2 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 11.9% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 89.0% over 6 years (latest: 135.7%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Secure networking (FortiGate firewalls, switches, access points)
- Unified SASE
- AI-driven security operations
- Subscription security services
06 · what it draws on
Key resources
- 15,109 employees
- Proprietary ASICs (e.g., SP5) and FortiOS
- R&D centered in the U.S. and Canada
02 · why customers buy
Value propositions
- Network security on FortiGate and its own ASICs; competes on security performance, throughput, reliability and breadth.
04 · how it keeps them
Customer relationships
- Security subscriptions and support services renewed by customers.
03 · how it reaches them
Channels
- A two-tier channel of distributors and resellers.
01 · who it serves
Customer segments
- Enterprises (financial services, retail, healthcare, OT)
- Communication and security service providers
- Government organizations
09 · where money goes
Cost structure
FY2025, share of revenue ($6.8B)
- Cost of revenue19.5%
- Research & development12.0%
- Selling, general & administrative3.4%
- Other operating costs34.4%
Operating profit left: 30.7% of revenue. Depreciation & amortization (inside the costs above): $152M. Capital spending: $365M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Product $2.22B (2025)
- Service $4.58B (subscriptions and support)
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Sells FortiGate firewalls and other products plus security subscriptions and support through a two-tier channel of distributors and resellers.
01 what it draws on
Inputs & resources
- 15,109 employees
- Proprietary ASICs (e.g., SP5) and FortiOS
- R&D centered in the U.S. and Canada
02 what it does
Activities
- Secure networking (FortiGate firewalls, switches, access points)
- Unified SASE
- AI-driven security operations
- Subscription security services
03 who it serves
Customers
- Enterprises (financial services, retail, healthcare, OT)
- Communication and security service providers
- Government organizations
04 how money comes in
How it earns
- Product $2.22B (2025)
- Service $4.58B (subscriptions and support)
How the business makes money
- Gross margin 80.5% in 2025.
- Distributors A, B and C accounted for 28%, 15% and 12% of 2025 revenue.
- Repurchased 12.5 million shares for $972.8M in the first half of 2026.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Fortinet is regulated by many agencies, including on exports and government sales.
Approvals & licenses
Government regulation
Regulated by federal, state and foreign agencies; compliance adds cost.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Service
4,580 (67%)Product
2,220 (33%)
Source: Form 10-K (FY2025) Fortinet has one reportable segment; shown by product and service revenue (total $6,800M).
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
EMEA — 42% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
1,930 (28%)Other Americas
771 (11%)EMEA
2,834 (42%)APAC
1,265 (19%)
Source: Form 10-K (FY2025) Revenue by geographic region.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Enterprises, service providers and governments, reached mainly through distributors and resellers.
Named by the company
Distributors A, B and C (unnamed) were 28%, 15% and 12% of 2025 revenue; named distributors include Arrow Electronics, Exclusive, Ingram Micro and TD Synnex.
Suppliers
Contract manufacturers and component suppliers.
Named by the company
No single supplier is named as material.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names competitors across network security and cloud-delivered security.
Competitors named in the 10-K
Network and cloud security
- Check Point Software Technologiessite ↗
- Cisco Systemssite ↗
- CrowdStrikesite ↗
- F5, Inc.site ↗
- Hewlett Packard Enterprisesite ↗
- Huaweisite ↗
- Microsoftsite ↗
- Netskopesite ↗
- Palo Alto Networkssite ↗
- SonicWallsite ↗
- Sophossite ↗
- Zscalersite ↗
Peer group the company chose
2025 compensation peer group (19 companies), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Approved October 2024 with Compensia; Cloudflare and Digital Realty were added for 2025.
- Akamai Technologiessite ↗
- Marvell Technologysite ↗
- Arista Networkssite ↗
- NetAppsite ↗
- Autodesksite ↗
- Palo Alto Networkssite ↗
- Cadence Design Systemssite ↗
- ServiceNowsite ↗
- Check Point Software Technologiessite ↗
- Snowflakesite ↗
- Cloudflaresite ↗
- Synopsyssite ↗
- CrowdStrikesite ↗
- Workdaysite ↗
- Datadogsite ↗
- Zoom Communicationssite ↗
- Digital Realtysite ↗
- Zscalersite ↗
- Equinixsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 2,594 | 3,342 | 4,417 | 5,305 | 5,956 | 6,800 |
| Operating income | 532 | 650 | 970 | 1,241 | 1,803 | 2,085 |
| Pretax income | 542 | 628 | 956 | 1,334 | 2,059 | 2,282 |
| Net income (attributable) | 489 | 607 | 857 | 1,148 | 1,745 | 1,853 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 28.8% | 32.2% | 20.1% | 12.3% | 14.2% |
| Operating margincalcoperating income ÷ revenue × 100 | 20.5% | 19.5% | 21.9% | 23.4% | 30.3% | 30.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 18.8% | 18.2% | 19.4% | 21.6% | 29.3% | 27.3% |
| Balance sheet ($M) | ||||||
| Total assets | 4,045 | 5,919 | 6,228 | 7,259 | 9,763 | 10,389 |
| Total equity | 856 | 798 | -282 | -463 | 1,494 | 1,238 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 0 | 988 | 990 | 992 | 994 | 996 |
| Equity ratio | 21.2% | 13.2% | -4.5% | -6.4% | 15.3% | 11.9% |
| ROE | 57.1% | 74.1% | — | — | — | 135.7% |
| Cash flow ($M) | ||||||
| Operating CF | 1,084 | 1,500 | 1,731 | 1,936 | 2,258 | 2,591 |
| Investing CF | -73 | -1,325 | 764 | -649 | -727 | -599 |
| Financing CF | -1,172 | 83 | -2,130 | -1,570 | -50 | -2,371 |
| Free cash flowcalccash flow from operations − capital expenditures | 958 | 1,204 | 1,449 | 1,731 | 1,879 | 2,226 |
| Cash and equivalents | 1,062 | 1,319 | 1,683 | 1,398 | 2,876 | 2,495 |
| Per share & other | ||||||
| EPS ($) | 0.58 | 0.73 | 1.06 | 1.46 | 2.26 | 2.42 |
| BVPS ($) | 1.05 | 0.97 | -0.36 | -0.61 | 1.95 | 1.67 |
| P/E (x) | 51.2 | 98.5 | 46.1 | 40.1 | 41.8 | 32.8 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 38.4 | 78.8 | 34.9 | 32.6 | 36.6 | 25.7 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 28.20 | 74.48 | — | — | 48.51 | 47.68 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $2.08B+20.5% | $704M+28.7% | $636M+34.1% | $0.86 |
| 2026-06-30 | $2.05B+25.6% | $689M+50.5% | $606M+37.8% | $0.82 |
| 2026-03-31 | $1.85B+20.1% | $580M+27.8% | $535M+23.3% | $0.72 |
| 2025-12-31 † | $1.91B+14.8% | $626M+9.0% | $506M-3.8% | — |
| 2025-09-30 | $1.72B | $547M | $474M | $0.62 |
| 2025-06-30 | $1.63B | $458M | $440M | $0.57 |
| 2025-03-31 | $1.54B | $454M | $433M | $0.56 |
| 2024-12-31 † | $1.66B | $574M | $526M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
74.6%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,085M × (1 − 15.5%) ÷ $2,361M × 100 = 74.6%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
11.01%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $59B ÷ ($59B + $996M) = 98.3%
e.g.Debt weight: $996M ÷ ($59B + $996M) = 1.7%
e.g.WACC: 11.2% × 98.3% + 2.0% × (1 − 15.5%) × 1.7% = 11.01%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 9.0%–13.4% and ROIC − WACC runs +61.2 to +65.6 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 11.01% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.13 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 11.16%
- Cost of debt
- 2.02%
- Tax rate
- 15.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 98% : 2%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 11.01%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.13 (price-derived adjusted beta. Raw β 1.19, R² 0.15, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.189 + 0.33 = 1.127
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.13 × 5.5% = 11.2%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
8.7%
Perpetual FCF growth: g = r − FCF ÷ EV = 11.0% − 2.3%
Past FCF growth (FY2020–FY2025)
+18.4%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+21.3%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $2.23B (operating CF − capex); enterprise value $95.33B = market cap $96.83B (latest close, 2026-11-04) + debt $996M − cash and short-term investments $2.5B; r = WACC of 11.0% using this page’s default assumptions (β 1.13, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$96.77B
FCF $2.23B ÷ (11.0% − 8.7%)
Theoretical ÷ actual enterprise value
1.02x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 9.0% | 10.0% | 11.0% | 12.0% | 13.0% |
|---|---|---|---|---|---|
| 0% | 0.26x | 0.23x | 0.21x | 0.19x | 0.18x |
| 2% | 0.33x | 0.29x | 0.26x | 0.23x | 0.21x |
| 4% | 0.47x | 0.39x | 0.33x | 0.29x | 0.26x |
| 6% | 0.78x | 0.58x | 0.47x | 0.39x | 0.33x |
| 8% | 2.33x | 1.17x | 0.78x | 0.58x | 0.47x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.85x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -7.3%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 91%
Most profit comes from core operations.
- ✓
Days sales outstanding: 101 → 85 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$2,591M ÷ $1,853M = 1.40x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,085M ÷ $2,282M × 100 = 91%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($1,463M + $1,691M) ÷ 2 ÷ $6,800M × 365 = 85 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($316M + $400M) ÷ 2 ÷ $1,329M × 365 = 98 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 68.6%
- Directors & officers (shares)
- 17.6%
- Everyone else (est.)
- 13.8%
- Directors & officers (voting power)
- 17.6%
- Institutional-ownership rank
- 384 of 416
- Beta (adjusted)
- 1.13
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 92% of covered companies have more
above 1 = swings more than the market
- 503.7M shares reported by 1,574 13F filers ÷ 733.7M shares outstanding on 2026-07-28. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-29 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-28)
19
Strengths & weaknessesSite analysis
Strengths
1. High-margin service base
Service revenue of $4.58B (two-thirds of revenue) and total gross margin of 80.5% in 2025.
Evidence: Form 10-K (FY2025)
2. Integrated platform
The Security Fabric combines secure networking, SASE and SecOps on one platform.
Evidence: Form 10-K (FY2025)
3. Strong cash generation
Operating cash flow of $2,591M in 2025.
Evidence: Form 10-K (FY2025)
Weaknesses
1. Distributor concentration
Three distributors made up 55% of 2025 revenue.
Evidence: Form 10-K (FY2025)
2. Securities litigation
A consolidated securities class action over statements about the 2026 firewall refresh cycle is pending.
Evidence: Form 10-Q (quarter ended 2026-09-30) — Note on Commitments and Contingencies (Litigation)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
32.8x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.8%
(Operating CF − capex) ÷ market cap
1. Profitable growth
Operating income rose from $532M (2020) to $2,085M (2025).
- What has to hold
- Refresh demand lifts product sales.
- The other side
- Competition from cloud-delivered security.
Evidence: Form 10-K (FY2025)
2. Buybacks
Shares outstanding fell from 812.5M (split-adjusted, 2020) to 743.0M (2025).
- What has to hold
- Cash flow funds repurchases.
- The other side
- Negative or thin equity after buybacks.
Evidence: Form 10-K (FY2025)
Five-for-one stock split in June 2022; FY2020 shares and book value per share are split-adjusted. Stockholders’ equity was negative at end-2022 and 2023 after buybacks. Fortinet pays no dividend.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
5.0x
$2.5B vs. $500M
Interest coverage (operating income ÷ interest expense)
103.7x
$2.08B vs. $20M
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Deferred revenue
Deferred revenue of $7.1B ($3,636M current, $3,480M non-current) at December 31, 2025.
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Fortinet faces a consolidated securities class action and stayed derivative suits over statements about the 2026 firewall refresh cycle; it won a jury verdict against Alorica, which is on appeal. Litigation accruals were not material at September 30, 2026.
3 open matters (1 flagged as major)
In re Fortinet, Inc. Securities Litigation
PendingClass actionMajorOklahoma Firefighters Pension and Retirement System; State of Rhode Island v. Fortinet and executives
Suits filed September 22 and October 16, 2025 (N.D. Cal.) on behalf of buyers from November 8, 2024 to August 6, 2025 allege misleading statements about the 2026 firewall refresh cycle; a consolidated amended complaint was filed April 24, 2026. Briefing on the motion to dismiss the consolidated amended complaint is complete.
Source: Form 10-Q (quarter ended 2026-09-30) — Note on Commitments and Contingencies (Litigation)
In re Fortinet, Inc. Stockholder Derivative Litigation
PendingLawsuitStockholders on behalf of Fortinet v. officers and directors
Derivative suits based on the same events were consolidated and stayed on April 2, 2026 pending the securities class action.
Source: Form 10-Q (quarter ended 2026-09-30) — Note on Commitments and Contingencies (Litigation)
Alorica v. Fortinet
On appealContract disputeAlorica Inc. v. Fortinet (Santa Clara County Superior Court)
Alorica alleged breach of warranty and misrepresentation; a jury ruled fully for Fortinet on October 4, 2024 and Alorica appealed. Fortinet expects no material impact.
Source: Form 10-Q (quarter ended 2026-09-30) — Note on Commitments and Contingencies (Litigation)
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-Q (quarter ended 2026-09-30) — Note on Commitments and Contingencies (Litigation), reviewed 2026-10-25. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Intense competition and cloud delivery
- Company disclosure (summarized from the 10-K)
- Competes with Check Point, Cisco, CrowdStrike, F5, HPE, Huawei, Microsoft, Netskope, Palo Alto Networks, SonicWALL, Sophos and Zscaler; some competitors focus on cloud-delivered security.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2Customer/supplier concentration
Reliance on large distributors
- Company disclosure (summarized from the 10-K)
- Largest distributors may face financial difficulties, harming collections.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Demand & macro
Billings and growth slowdown
- Company disclosure (summarized from the 10-K)
- Billings, revenue and free cash flow growth may slow and margins may decline if demand or renewals weaken.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 4Law & regulation
Litigation
- Company disclosure (summarized from the 10-K)
- Securities class action and derivative suits pending; IP claims could require damages or product changes.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (6)
Our billings, revenue and free cash flow growth, including our product and service billings and revenue, may slow, and our operating margins may decline, particularly if our billings and revenue do not improve or grow as anticipated, or if customer demand, renewal rates, pricing, competitive dynamics, implementation timing, cost structure, or macroeconomic conditions adversely affect our business, which could negatively impact our financial condition and results of operations.
• funding authorizations and requirements unique to government agencies, with funding or purchasing reductions or delays adversely affecting public sector demand for our products. Read more
Our business operations, contract awards, and revenue streams are subject to governmental actions, which may introduce risks to our financial performance and strategic growth. In addition, these actions could eliminate or reduce the operations of an agency that we work with, terminate employees with whom we have business relations with or cancel or modify a contract with us. Any failure to comply with these actions, shifts in federal procurement strategies, or budgetary reductions imposed by the agency could adversely impact our financial results, competitive positioning, and overall business operations; and
In addition to the GDPR, the EU has also enacted legislation that would regulate non-personal data and establish new cybersecurity standards, and other countries, including the U.K., may similarly do so in the future. Read more
In particular, the EU Data Act went into effect in 2024 and imposes certain data and cloud service interoperability and switching obligations to enable users to switch between cloud service providers (as well as certain requirements concerning cross-border international transfers of non-personal data outside the EEA). Additionally, the EU’s Network and Information Security Directive II, adopted in 2023, regulates resilience and incident response capabilities of entities operating in a number of sectors, including the digital infrastructure sector and provides for EU member states to have issued implementing legislation by October 2024. Further, DORA became effective in…
We are currently, and may in the future become, involved in litigation that may adversely affect us.
We are regularly subject to claims, suits and government investigations and other proceedings including patent, product liability, class action, personal injury, property damage, labor and employment, commercial disputes, securities litigation, compliance with laws and regulatory requirements and other matters, and we may become subject to additional types of claims, suits, investigations and proceedings as our business expands. Such claims, suits and government investigations and proceedings are inherently uncertain and their results cannot be predicted with certainty. Regardless of the outcome, any of these types of legal proceedings can have an adverse impact on us because of legal costs and diversion of management attention and resources, and could cause us to incur significant expenses or liability, adversely affect our brand recognition and/or require us to change our business…
Additional regulations involving single-use plastics in packaging resulting in import taxes in certain countries in the EU have resulted in additional costs to source appropriate packaging for hardware. Read more
Alternatively, for our cloud based systems, new EU energy efficiency laws relating to the power usage effectiveness and emerging water usage regulations of data centers will require us to source specific data centers or retrofit existing ones to meet the stringent energy efficiency requirements.
No longer in the text (1)
• as the supply chain challenges normalize, our product revenue growth rate may be lower versus prior quarters where delivery from backlog contributed more to billings. Read more
For fiscal year 2024, the comparably lower backlog contribution to billings resulted in decreased year-over-year quarterly growth rates;
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 25, 2026 ↗ with the 10-K filed Feb 21, 2025 ↗.
25
What to watch going forwardSite analysis
- Firewall refresh cycle and product revenue growth (Q2 2026 revenue +26%; Q3 product revenue +37%).
- Service revenue and gross margin.
- Share repurchases (authorization raised by $1.0B in January 2026).
- In re Fortinet securities class action.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 15:14 (SEC EDGAR) · Source 10-K filed: February 25, 2026
Built on10-K FY2025 · filed 2026-02-25Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Fortinet’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.