📊 FTNT Key Takeaways
Is Fortinet, Inc. (FTNT) a Good Investment?
Fortinet demonstrates exceptional financial health with industry-leading profitability metrics (80.5% gross margin, 27.3% net margin) and robust revenue growth of 14.2% YoY. The company generates substantial free cash flow ($2.2B) with a 32.7% FCF margin while maintaining strong balance sheet fundamentals with conservative leverage (0.40x debt/equity) and excellent interest coverage (103.7x).
Fortinet shows high-quality fundamentals with exceptional gross, operating, and free cash flow margins, indicating strong pricing power and disciplined cost control. Revenue growth remains solid at 14.2%, but earnings are growing more slowly than sales, suggesting some margin normalization or higher expense intensity. Overall, the business appears financially strong, cash-generative, and operationally resilient, though the liability-heavy balance sheet warrants monitoring.
Why Buy Fortinet, Inc. Stock? FTNT Key Strengths
- Exceptional profitability with 27.3% net margin and 30.7% operating margin, significantly above cybersecurity industry averages
- Strong revenue growth of 14.2% YoY paired with 14.2% net income growth, demonstrating operational leverage and pricing power
- Outstanding free cash flow generation of $2.2B (32.7% FCF margin) providing capital flexibility for R&D, M&A, and shareholder returns
- Conservative balance sheet with 0.40x debt/equity ratio, $2.5B cash position, and exceptional 103.7x interest coverage ratio
- Superior returns on equity (149.8%) and assets (17.8%) indicating highly efficient capital deployment
- Excellent profitability with 80.5% gross margin, 30.7% operating margin, and 27.3% net margin
- Very strong cash generation with $2.23B in free cash flow and a 32.7% FCF margin
- Healthy financial flexibility supported by $2.50B in cash, low long-term debt, and very high interest coverage
FTNT Stock Risks: Fortinet, Inc. Investment Risks
- Elevated ROE of 149.8% may indicate financial leverage rather than purely operational efficiency; modest stockholders equity base ($1.2B) relative to total assets warrants monitoring
- Tight current ratio of 1.17x suggests limited liquidity cushion relative to short-term obligations despite strong cash generation
- High insider trading activity (17 Form 4 filings in 90 days) warrants monitoring for potential insider intent signals
- Cybersecurity sector faces intense competition and rapid technology disruption requiring continuous R&D investment to maintain market position
- Net income growth of 6.2% is trailing revenue growth of 14.2%, which may indicate rising costs or margin pressure
- Very low equity base makes ROE unusually high and reflects a balance sheet with limited equity cushion
- Liquidity is adequate but not especially conservative, with a 1.17x current ratio and 1.09x quick ratio
Key Metrics to Watch
- Revenue growth rate sustainability and gross margin expansion/compression
- Free cash flow generation consistency and capital allocation decisions
- Debt/equity ratio and cash position relative to acquisition activities or strategic investments
- Operating margin trends and R&D spending intensity
- Customer retention rates and recurring revenue mix (subscription vs. perpetual license)
- Foreign exchange exposure impact on international revenue
- Operating margin and net income growth relative to revenue growth
- Free cash flow margin and changes in stockholders' equity
Fortinet, Inc. (FTNT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 32.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
FTNT Profit Margin, ROE & Profitability Analysis
FTNT vs Technology Sector: How Fortinet, Inc. Compares
How Fortinet, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fortinet, Inc. Stock Overvalued? FTNT Valuation Analysis 2026
Based on fundamental analysis, Fortinet, Inc. appears fundamentally strong relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fortinet, Inc. Balance Sheet: FTNT Debt, Cash & Liquidity
FTNT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fortinet, Inc.'s revenue has grown significantly by 103% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.46 reflects profitable operations.
FTNT Revenue Growth, EPS Growth & YoY Performance
FTNT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.5B | $473.9M | $0.62 |
| Q2 2025 | $1.4B | $379.8M | $0.49 |
| Q1 2025 | $1.4B | $299.3M | $0.39 |
| Q3 2024 | $1.3B | $322.9M | $0.41 |
| Q2 2024 | $1.3B | $266.3M | $0.33 |
| Q1 2024 | $1.3B | $247.7M | $0.31 |
| Q3 2023 | $1.1B | $231.6M | $0.29 |
| Q2 2023 | $1.0B | $173.5M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fortinet, Inc. Dividends, Buybacks & Capital Allocation
FTNT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fortinet, Inc. (CIK: 0001262039)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 1, 2026 | 4 | xslF345X06/form4-04012026_100417.xml | View → |
| Apr 1, 2026 | 4 | xslF345X06/form4-04012026_100445.xml | View → |
| Apr 1, 2026 | 4 | xslF345X06/form4-04012026_100421.xml | View → |
| Apr 1, 2026 | 4 | xslF345X06/form4-04012026_100459.xml | View → |
| Apr 1, 2026 | 4 | xslF345X06/form4-04012026_100439.xml | View → |
❓ Frequently Asked Questions about FTNT
What is the AI rating for FTNT?
Fortinet, Inc. (FTNT) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTNT's key strengths?
Claude: Exceptional profitability with 27.3% net margin and 30.7% operating margin, significantly above cybersecurity industry averages. Strong revenue growth of 14.2% YoY paired with 14.2% net income growth, demonstrating operational leverage and pricing power. ChatGPT: Excellent profitability with 80.5% gross margin, 30.7% operating margin, and 27.3% net margin. Very strong cash generation with $2.23B in free cash flow and a 32.7% FCF margin.
What are the risks of investing in FTNT?
Claude: Elevated ROE of 149.8% may indicate financial leverage rather than purely operational efficiency; modest stockholders equity base ($1.2B) relative to total assets warrants monitoring. Tight current ratio of 1.17x suggests limited liquidity cushion relative to short-term obligations despite strong cash generation. ChatGPT: Net income growth of 6.2% is trailing revenue growth of 14.2%, which may indicate rising costs or margin pressure. Very low equity base makes ROE unusually high and reflects a balance sheet with limited equity cushion.
What is FTNT's revenue and growth?
Fortinet, Inc. reported revenue of $6.8B.
Does FTNT pay dividends?
Fortinet, Inc. does not currently pay dividends.
Where can I find FTNT SEC filings?
Official SEC filings for Fortinet, Inc. (CIK: 0001262039) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FTNT's EPS?
Fortinet, Inc. has a diluted EPS of $2.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FTNT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Fortinet, Inc. has a BUY rating with 88% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FTNT stock overvalued or undervalued?
Valuation metrics for FTNT: ROE of 149.8% (sector avg: 22%), net margin of 27.3% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy FTNT stock in 2026?
Our dual AI analysis gives Fortinet, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FTNT's free cash flow?
Fortinet, Inc.'s operating cash flow is $2.6B, with capital expenditures of $364.8M. FCF margin is 32.7%.
How does FTNT compare to other Technology stocks?
Vs Technology sector averages: Net margin 27.3% (avg: 18%), ROE 149.8% (avg: 22%), current ratio 1.17 (avg: 2.5).
Why is FTNT's return on equity (ROE) so high?
Fortinet, Inc. has a return on equity of 149.8%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 27.3% net margin.