Fortinet (NASDAQ:FTNT) Issues Earnings Results, Beats Expectations By $0.20 EPS

Fortinet (NASDAQ:FTNT) released its quarterly earnings data on Wednesday. The software maker reported $0.82 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.20, FiscalAI reports. Fortinet had a net margin of 27.49% and a return on equity of 149.52%. The company had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.73 billion. During the same period in the prior year, the firm earned $0.58 earnings per share. The firm’s revenue for the quarter was up 20.1% compared to the same quarter last year. Fortinet updated its Q2 2026 guidance to 0.720-0.760 EPS and its FY 2026 guidance to 3.100-3.160 EPS.

Here are the key takeaways from Fortinet’s conference call:

• Fortinet beat its Q1 targets and raised 2026 guidance — billings grew 31%, total revenue +20% (product revenue +41%), GAAP EPS +29%, and the company said it will raise full-year outlook after the strong quarter.
• Demand is being driven by AI, SASE and OT adoption: Unified SASE billings +31%, OT billings >70%, several AI data?center wins, and >6,600 new organizations added in the quarter.
• Profitability and cash generation were strong — non?GAAP operating margin hit a Q1 record of 35.8%, GAAP operating margin 31.4%, and Fortinet generated a record $1 billion free cash flow while repurchasing $827M of stock.
• Management emphasized differentiation from its unified OS ( FortiOS ), proprietary FortiASIC chips, global cloud and direct supply?chain model, which it says drive higher performance, lower TCO and market?share gains.
• Risks remain: component/memory cost pressure has a low single?digit impact baked into product revenue and could force pricing actions; the outlook depends on continued AI?driven demand and supply?chain dynamics.

Fortinet Stock Performance

Shares of NASDAQ FTNT traded up $6.31 during midday trading on Friday, reaching $114.28. 5,170,391 shares of the stock were exchanged, compared to its average volume of 6,568,917. The firm has a market cap of $83.66 billion, a price-to-earnings ratio of 44.14, a PEG ratio of 3.08 and a beta of 0.92. Fortinet has a twelve month low of $70.12 and a twelve month high of $114.26. The firm has a 50-day simple moving average of $82.97 and a two-hundred day simple moving average of $81.98. The company has a quick ratio of 1.09, a current ratio of 1.17 and a debt-to-equity ratio of 0.40.

Wall Street Analysts Forecast Growth

Several analysts have commented on FTNT shares. Truist Financial set a $120.00 price target on shares of Fortinet and gave the company a “buy” rating in a research report on Thursday. Robert W. Baird set a $115.00 price target on shares of Fortinet in a research report on Thursday. Barclays set a $115.00 price target on shares of Fortinet and gave the company an “equal weight” rating in a research report on Thursday. Freedom Capital lowered shares of Fortinet from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 17th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $107.00 price objective (up from $90.00) on shares of Fortinet in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twenty-four have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $99.59.

Fortinet News Summary

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Blowout Q1 results — revenue $1.85B (+20% Y/Y), EPS $0.82 (beat), billings +31%, product revenue +41%, record operating & free cash flow; company raised Q2 and FY26 guidance, signaling sustained demand and margin leverage. Q1 Press Release
• Positive Sentiment: Market reaction and analyst commentary highlight AI/data?center traction as a durable growth vector — analysts point to AI security wins that help counter fears of software dislocation. AI Momentum Coverage
• Positive Sentiment: Several upgrades and buy calls following the results (e.g., BTIG, Rosenblatt) and multiple price?target raises — adds upward analyst momentum and legitimizes the beat?and?raise. BTIG Upgrade Rosenblatt PT
• Neutral Sentiment: Zacks upgraded FTNT to a #2 (Buy) on improved earnings outlook — supportive but not a major swing by itself. Zacks Upgrade
• Neutral Sentiment: Multiple brokerages raised price targets but kept neutral/sector?perform ratings (UBS, Susquehanna, Piper, Scotiabank) — indicates wider recognition of stronger fundamentals but mixed views on valuation. Analyst PT Moves
• Neutral Sentiment: RBC and other houses left or maintained hold/neutral stances — some analysts still cautious on valuation despite growth. RBC Hold
• Negative Sentiment: Insider selling disclosed (CEO and a VP sold shares) — raises standard governance/near?term supply questions even as management often uses sales for diversification. CEO Insider Sale
• Negative Sentiment: Some sell/underperform calls remained or were issued (JPMorgan, Mizuho) — shows a subset of analysts view current valuation as extended vs. risks. Underweight/Underperform Notes

Insider Buying and Selling

In related news, CEO Ken Xie sold 5,355 shares of Fortinet stock in a transaction on Monday, May 4th. The shares were sold at an average price of $88.90, for a total value of $476,059.50. Following the sale, the chief executive officer owned 52,978,004 shares of the company’s stock, valued at approximately $4,709,744,555.60. This trade represents a 0.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Michael Xie sold 2,478 shares of Fortinet stock in a transaction on Monday, May 4th. The shares were sold at an average price of $88.89, for a total transaction of $220,269.42. Following the completion of the sale, the vice president directly owned 9,927,517 shares in the company, valued at $882,456,986.13. This represents a 0.02% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 17.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Wexford Capital LP purchased a new position in shares of Fortinet during the 3rd quarter worth $25,000. Palisade Asset Management LLC purchased a new position in shares of Fortinet during the 3rd quarter worth $28,000. Quarry LP purchased a new position in shares of Fortinet during the 3rd quarter worth $33,000. Swiss RE Ltd. purchased a new position in shares of Fortinet during the 4th quarter worth $38,000. Finally, GW&K Investment Management LLC raised its holdings in Fortinet by 31.4% in the 4th quarter. GW&K Investment Management LLC now owns 515 shares of the software maker’s stock valued at $41,000 after buying an additional 123 shares during the period. Hedge funds and other institutional investors own 83.71% of the company’s stock.

Fortinet Company Profile

Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co?founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia?Pacific.

Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next?generation firewalls and the FortiOS operating system forming a core platform.