Fortinet beats Q4 revenue expectations, expands share repurchase authorization by $1 bln

Overview

• Cybersecurity firm's Q4 revenue grew 15% yr/yr, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company expands share repurchase authorization by $1 bln

Outlook

• Fortinet expects Q1 2026 revenue between $1.700 bln and $1.760 bln

• Company sees FY 2026 revenue between $7.500 bln and $7.700 bln

• Fortinet anticipates Q1 2026 non-GAAP operating margin between 30% and 32%

Result Drivers

• UNIFIED SASE DEMAND - Fortinet's Q4 performance was driven by strong demand for Unified SASE solutions, with billings growing 40%

• PARTNERSHIPS AND RECOGNITIONS - Collaborations with NVIDIA and recognitions from Gartner and Google supported Fortinet's Q4 growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 29 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Fortinet Inc is $87.00, about 7.2% above its February 4 closing price of $81.12

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 31 three months ago

Press Release: ID:nGNE4kh4DM

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