Fortinet (NASDAQ:FTNT) Updates FY 2026 Earnings Guidance

Key Points

• Fortinet raised FY2026 guidance, providing EPS guidance of 3.10–3.16 (vs. consensus ~2.91) and revenue guidance of $7.7B–$7.9B, with Q2 EPS guided at 0.72–0.76.
• The company reported a strong Q1 beat—EPS $0.82 vs. $0.61 and revenue $1.85B vs. $1.73B—highlighting robust margins, record cash flow and 31% billings growth, and launched the FortiGate G‑series to target AI/data‑center security demand.
• Market reaction is mixed: analysts’ consensus rating is a Hold with an average price target of $88.38, while insider sales (executed under Rule 10b5‑1 to cover taxes) and some Hold/Sell analyst stances could cap near‑term upside.

Fortinet (NASDAQ:FTNT - Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 3.100-3.160 for the period, compared to the consensus earnings per share estimate of 2.910. The company issued revenue guidance of $7.7 billion-$7.9 billion, compared to the consensus revenue estimate of $7.6 billion. Fortinet also updated its Q2 2026 guidance to 0.720-0.760 EPS.

Analysts Set New Price Targets

A number of brokerages recently weighed in on FTNT. Royal Bank Of Canada reiterated a "sector perform" rating and set a $90.00 price target (up from $85.00) on shares of Fortinet in a research note on Friday, February 6th. Rosenblatt Securities upped their target price on shares of Fortinet from $100.00 to $105.00 and gave the company a "buy" rating in a report on Friday, February 6th. Scotiabank downgraded shares of Fortinet from a "sector outperform" rating to a "sector perform" rating and set a $85.00 target price for the company. in a research note on Monday, February 2nd. JPMorgan Chase & Co. raised their price target on Fortinet from $72.00 to $73.00 and gave the stock an "underweight" rating in a report on Friday, February 6th. Finally, Jefferies Financial Group set a $90.00 price objective on Fortinet in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twenty-one have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $88.38.

Fortinet Stock Performance

Fortinet stock traded up $0.03 during trading hours on Wednesday, reaching $89.95. 7,797,376 shares of the stock were exchanged, compared to its average volume of 6,444,279. Fortinet has a 52-week low of $70.12 and a 52-week high of $108.77. The stock has a market cap of $65.85 billion, a P/E ratio of 37.02, a P/E/G ratio of 3.06 and a beta of 0.92. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.09 and a current ratio of 1.17. The firm's 50 day moving average is $82.03 and its 200 day moving average is $81.76.

Fortinet (NASDAQ:FTNT - Get Free Report) last issued its earnings results on Wednesday, May 6th. The software maker reported $0.82 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.21. Fortinet had a net margin of 27.26% and a return on equity of 124.21%. The business had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.73 billion. Fortinet has set its Q2 2026 guidance at 0.720-0.760 EPS and its FY 2026 guidance at 3.100-3.160 EPS. Analysts predict that Fortinet will post 2.63 EPS for the current fiscal year.

Insider Buying and Selling

In other news, VP Michael Xie sold 2,478 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $88.89, for a total transaction of $220,269.42. Following the completion of the transaction, the vice president directly owned 9,927,517 shares of the company's stock, valued at approximately $882,456,986.13. This represents a 0.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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, CEO Ken Xie sold 5,355 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 52,978,004 shares of the company's stock, valued at $4,709,744,555.60. This represents a 0.01% decrease in their ownership of the stock. 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. 18.00% of the stock is currently owned by insiders.

More Fortinet News

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Q1 results beat expectations: EPS of $0.82 vs. $0.61 consensus and revenue $1.85B vs. $1.73B; strong margins, 31% GAAP operating margin (36% non‑GAAP), record operating & free cash flow, and 31% billings growth — a clear fundamental upside driver. Fortinet Reports Strong First Quarter 2026 Financial Results
• Positive Sentiment: Company raised guidance: Q2 EPS guide of $0.72–$0.76 vs. street $0.68 and FY26 EPS guide of $3.10–$3.16 vs. consensus ~2.91 — improves the outlook and justifies re-rating if execution continues. Q1 Press Release / Slides
• Positive Sentiment: Product catalyst: launched FortiGate G-series (3500G/400G) positioned to secure AI workloads — expands TAM exposure to AI/large‑scale data center security, a thematic growth tailwind. FortiGate G Series Announcement
• Positive Sentiment: BMO boosted its forecast/price target, supporting near‑term buy interest from institutions and some buy‑side reallocation into the name. BMO Positive Forecast for FTNT
• Neutral Sentiment: Insider sales disclosed (CEO Ken Xie and VP Michael Xie) executed under Rule 10b5‑1 to cover tax withholding on vested awards — expected but worth monitoring for signaling. SEC Form 4 — Ken Xie
• Neutral Sentiment: Some sell‑side views remain mixed (Barclays/stick to hold), so consensus is not uniformly bullish; near‑term moves may be volatile around guidance execution. Barclays Hold Rating
• Neutral Sentiment: Sector strength (CrowdStrike and AI security demand) is a positive backdrop but also raises valuation comparisons and expectations for continued high growth. CrowdStrike Stock Article
• Negative Sentiment: Some institutional trimming and a cluster of Hold/Sell analyst stances could cap upside if upcoming quarters fall short of raised guidance — execution and gross margin sustainability are key risk points. QuiverQuant Institutional Flows

Institutional Investors Weigh In On Fortinet

Several institutional investors have recently made changes to their positions in the stock. Bison Wealth LLC acquired a new position in Fortinet during the fourth quarter worth about $585,000. Brighton Jones LLC increased its holdings in Fortinet by 2.2% in the fourth quarter. Brighton Jones LLC now owns 10,327 shares of the software maker's stock valued at $976,000 after buying an additional 221 shares in the last quarter. MUFG Securities EMEA plc acquired a new stake in shares of Fortinet during the 2nd quarter valued at approximately $198,000. Keystone Financial Group purchased a new stake in shares of Fortinet during the 3rd quarter worth approximately $165,000. Finally, Aster Capital Management DIFC Ltd boosted its stake in shares of Fortinet by 5,512.9% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,740 shares of the software maker's stock worth $138,000 after acquiring an additional 1,709 shares in the last quarter. 83.71% of the stock is currently owned by hedge funds and other institutional investors.

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.

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