Fortinet (NASDAQ:FTNT) Updates FY 2025 Earnings Guidance

Key Points

• Fortinet has updated its FY 2025 earnings guidance, predicting EPS between $2.470 and $2.530, below analyst expectations, along with revenue guidance of $6.7 billion-$6.8 billion.
• Morgan Stanley downgraded Fortinet's stock rating from "overweight" to "reduce", lowering its price target from $110.00 to $78.00, while analysts maintain a consensus rating of "Hold".
• Fortinet's stock price fell to $72.12 on Thursday, with a market cap of $55.20 billion and a year-over-year revenue increase of 13.6%.

Fortinet (NASDAQ:FTNT - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided EPS guidance of 2.470-2.530 for the period, compared to the consensus EPS estimate of 2.481. The company issued revenue guidance of $6.7 billion-$6.8 billion, compared to the consensus revenue estimate of $6.8 billion. Fortinet also updated its Q3 2025 guidance to 0.620-0.640 EPS.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Morgan Stanley downgraded shares of Fortinet from an "overweight" rating to a "reduce" rating and decreased their price objective for the stock from $110.00 to $78.00 in a report on Thursday. TD Cowen reiterated a "hold" rating and set a $105.00 price target on shares of Fortinet in a research note on Thursday. Wolfe Research began coverage on shares of Fortinet in a research report on Monday, May 12th. They set a "peer perform" rating for the company. Cowen cut shares of Fortinet from a "buy" rating to a "hold" rating in a report on Thursday. Finally, Barclays reduced their price target on Fortinet from $110.00 to $90.00 and set an "equal weight" rating for the company in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, twenty-four have assigned a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, Fortinet currently has a consensus rating of "Hold" and a consensus target price of $101.14.

Fortinet Price Performance

NASDAQ:FTNT traded down $24.47 on Thursday, reaching $72.12. 31,493,704 shares of the company's stock traded hands, compared to its average volume of 4,944,432. The stock has a 50-day simple moving average of $102.85 and a 200-day simple moving average of $101.88. The firm has a market cap of $55.20 billion, a PE ratio of 29.44, a P/E/G ratio of 3.32 and a beta of 1.07. Fortinet has a 12 month low of $67.97 and a 12 month high of $114.82. The company has a quick ratio of 1.29, a current ratio of 1.36 and a debt-to-equity ratio of 0.25.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its earnings results on Wednesday, August 6th. The software maker reported $0.64 EPS for the quarter, topping analysts' consensus estimates of $0.59 by $0.05. Fortinet had a return on equity of 148.79% and a net margin of 30.60%. The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the business earned $0.57 earnings per share. The firm's revenue for the quarter was up 13.6% on a year-over-year basis. Equities research analysts forecast that Fortinet will post 2.09 earnings per share for the current year.

Insider Activity

In related news, Director William H. Neukom bought 335 shares of the company's stock in a transaction dated Friday, June 6th. The stock was purchased at an average price of $104.22 per share, for a total transaction of $34,913.70. Following the acquisition, the director owned 301,471 shares in the company, valued at $31,419,307.62. This trade represents a 0.11% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Michael Xie sold 476,596 shares of Fortinet stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $98.48, for a total transaction of $46,935,174.08. Following the transaction, the vice president directly owned 9,730,560 shares of the company's stock, valued at approximately $958,265,548.80. This represents a 4.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 17.20% of the company's stock.

Institutional Investors Weigh In On Fortinet

A hedge fund recently bought a new stake in Fortinet stock. Bison Wealth LLC acquired a new position in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) in the 4th quarter, according to the company in its most recent filing with the SEC. The fund acquired 6,194 shares of the software maker's stock, valued at approximately $585,000. 83.71% of the stock is owned by hedge funds and other institutional investors.

Fortinet Company Profile

Fortinet, Inc provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products.

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