Headquartered in Sunnyvale, California, Fortinet, Inc. (FTNT) is a leading global cybersecurity solutions provider specializing in developing, engineering, and delivering cutting-edge network security products and services. With a market cap of $76.1 billion, its commitment to innovation and cybersecurity excellence has solidified its position as a trusted partner in the network security and threat intelligence industry.
Shares of this cybersecurity company have outperformed the broader market considerably over the past year. FTNT has gained 51.3% over this time frame, while the S&P 500 Index ($SPX) has rallied nearly 23.3%. In 2025, FTNT stock is up 6.8%, surpassing SPX’s 3.2% rise on a YTD basis.
Zooming in further, FTNT outperformed compared to Xtrackers Cybersecurity Select Equity ETF (PSWD). The exchange-traded fund has gained about 10.8% over the past year. Moreover, FTNT’s gains on a YTD basis slightly outshine the ETF’s 6.7% returns over the same time frame.
Fortinet’s shares jumped 10% after reporting stronger-than-expected Q3 earnings results on Nov. 7. The company posted an adjusted EPS of $0.63, surpassing Wall Street estimates of $0.51, while revenue amounted to $1.51 billion, beating forecasts of $1.48 billion and marking a 13% year-over-year increase.
Fortinet is set to unveil its Q4 earnings report on Thursday, Feb. 6, after the market close. Its fiscal Q4 and 2024 outlook reflects steady growth. Revenue is projected to be between $5.86 billion and $5.92 billion for the year and between $1.56 billion and $1.62 billion for fiscal Q4. The company also forecasts EPS between $0.58 and $0.62 for the quarter and between $2.20 and $2.28 for the full year.
For the current fiscal year, which ended in December, analysts expect FTNT’s EPS to grow 32.7% to $1.95 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 37 analysts covering FTNT stock, the consensus is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, 22 “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago when 12 analysts recommended a “Strong Buy” rating.
On Jan. 29, Joseph Gallo from Jefferies maintained a “Hold” rating on Fortinet, with a price target of $105, implying a potential upside of 4% from current levels.
The mean price target of $101.16 represents a marginal premium to FTNT's current levels. The Street-high price target of $120 implies a potential upside of 18.9% from the current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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