Zacks Research Upgrades Fortinet (NASDAQ:FTNT) to Strong-Buy

Key Points

• Zacks Research upgraded Fortinet (NASDAQ:FTNT) from hold to strong-buy, adding to a mixed but generally supportive analyst backdrop for the stock.
• Fortinet also posted a strong quarterly report, with EPS of $0.82 beating estimates by $0.20 and revenue of $1.85 billion topping expectations as sales rose 20.1% year over year.
• The stock has seen significant attention after the earnings beat, with shares trading near their 52-week high and several firms, including BTIG and RBC, issuing or raising price targets amid optimism around cybersecurity demand.

Fortinet (NASDAQ:FTNT - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Thursday,Zacks.com reports.

A number of other research firms have also issued reports on FTNT. BTIG Research upgraded shares of Fortinet from a "neutral" rating to a "buy" rating and set a $125.00 target price on the stock in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $100.00 target price on shares of Fortinet in a report on Thursday, May 7th. Weiss Ratings upgraded shares of Fortinet from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Royal Bank Of Canada reissued 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, May 7th. Finally, Robert W. Baird set a $115.00 price objective on shares of Fortinet in a research report on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, twenty-three have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $100.45.

Fortinet Price Performance

Fortinet stock opened at $122.78 on Thursday. The firm has a market cap of $89.95 billion, a PE ratio of 47.41, a price-to-earnings-growth ratio of 3.35 and a beta of 0.92. Fortinet has a 52-week low of $70.12 and a 52-week high of $123.33. The company has a quick ratio of 1.07, a current ratio of 1.15 and a debt-to-equity ratio of 0.50. The company's 50 day moving average is $87.51 and its two-hundred day moving average is $83.37.

Fortinet (NASDAQ:FTNT - Get Free Report) last released its earnings results on Wednesday, May 6th. The software maker reported $0.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.20. The company had revenue of $1.85 billion for the quarter, compared to analyst estimates of $1.73 billion. Fortinet had a net margin of 27.49% and a return on equity of 160.08%. The firm's quarterly revenue was up 20.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.58 EPS. Fortinet has set its Q2 2026 guidance at 0.720-0.760 EPS and its FY 2026 guidance at 3.100-3.160 EPS. On average, research analysts expect that Fortinet will post 2.77 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, VP Michael Xie sold 2,478 shares of the stock in a transaction on Monday, May 4th. The shares were sold at an average price of $88.89, for a total value of $220,269.42. Following the transaction, the vice president directly owned 9,927,517 shares of the company's stock, valued at $882,456,986.13. This trade represents a 0.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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, CEO Ken Xie sold 5,355 shares of the stock in a transaction on Monday, May 4th. The shares were sold at an average price of $88.90, for a total transaction of $476,059.50. Following the completion of the transaction, the chief executive officer directly owned 52,978,004 shares in the company, valued at $4,709,744,555.60. This trade 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. Company insiders own 17.60% of the company's stock.

Institutional Trading of Fortinet

Large investors have recently bought and sold shares of the business. Pinnacle Holdings LLC acquired a new stake in Fortinet during the 3rd quarter worth $25,000. Ameriflex Group Inc. acquired a new stake in Fortinet during the 3rd quarter worth $25,000. Physician Wealth Advisors Inc. boosted its stake in Fortinet by 408.3% during the 1st quarter. Physician Wealth Advisors Inc. now owns 305 shares of the software maker's stock worth $25,000 after purchasing an additional 245 shares during the period. Wexford Capital LP acquired a new stake in Fortinet during the 3rd quarter worth $25,000. Finally, Elyxium Wealth LLC acquired a new stake in shares of Fortinet in the 4th quarter worth $27,000. Institutional investors and hedge funds own 83.71% of the company's stock.

Key Headlines Impacting Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Zacks highlighted Fortinet as one of several security stocks benefiting from surging demand for cybersecurity solutions as companies accelerate digital transformation and cloud migration. 4 Security Stocks to Focus on From a Flourishing Industry
• Positive Sentiment: Scotiabank raised its FY2026 EPS estimate for Fortinet to $2.76 from $2.62, which can support investor confidence in earnings power even though the firm kept a Sector Perform rating and a $110 target.
• Positive Sentiment: Multiple market write-ups pointed to Fortinet’s strong Q1 beat, AI-driven demand, and institutional buying as reasons the stock has maintained strong momentum after earnings. Fortinet Stock's Momentum Score Skyrockets As AI-Driven Q1 Beat Ignites Rally
• Neutral Sentiment: Scotiabank also trimmed its FY2027 EPS estimate to $2.95 from $3.02, which is a mild headwind but not enough to offset the more upbeat near-term outlook.
• Neutral Sentiment: Fortinet was mentioned in broader cybersecurity and market commentary alongside peers such as CrowdStrike and Okta, reinforcing sector strength rather than providing company-specific news.

About Fortinet

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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