Key statistics

Is FTNT a good stock to buy in 2026?

FTNT’s P/E ratio of 32.54x currently trades at a discount compared to the Software – Infrastructure sector average of 44.3x, suggesting a potentially attractive FTNT valuation. The stock’s discounted cash flow (DCF) fair value estimate of $88.87 indicates a 9.5% upside from its current price, further supporting a positive outlook. While 44.1% of analysts rate FTNT a Buy, the overall consensus is “Hold,” reflecting a balanced view on whether FTNT is a good stock to buy in 2026 given its current market position.

2026 FTNT price scenarios

Based on analyst consensus of $85.67 from 68 analysts. Not a prediction by Alert Invest.

About Fortinet, Inc. (FTNT)

Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, web filtering, anti-spam, and wide area network acceleration. The company also provides FortiSwitch product family that offers secure swit

Fortinet, Inc., led by co-founder and CEO Ken Xie, is a dominant force in the cybersecurity sector, employing approximately 14,556 individuals globally. The company’s distinctive strength lies in its Security Fabric platform, which offers a broad, integrated, and automated approach to security across an organization’s entire digital attack surface. This comprehensive strategy, from network firewalls to endpoint protection, differentiates Fortinet from competitors by providing a unified and scalable security architecture. Their focus on high-performance security processors and operating systems further enhances their competitive edge, delivering robust and efficient solutions to a wide range of enterprises and service providers.

FTNT competitive moat and business analysis

Fortinet’s competitive advantage is clearly demonstrated by its impressive profitability metrics. The company boasts a gross margin of 80.84% and a net margin of 27.26%, far exceeding many industry peers and signaling strong pricing power and efficient operations within the Software – Infrastructure sector. While ROE and ROIC data are N/A, these robust margins suggest that Fortinet efficiently converts revenue into profit, which is a hallmark of a strong business with a defensible position. This high profitability underpins its ability to invest in R&D and maintain its technological leadership, crucial for cybersecurity.

Fortinet’s revenue streams are primarily derived from its comprehensive cybersecurity solutions, which include hardware, software licenses, and services. The company’s financial report for fiscal year 2025, ending 2025-12-31, indicates significant contributions from both its product sales and subscription-based services, although specific segment details beyond what’s indicated by the provided data are not available. Geographically, Fortinet demonstrates a broad global reach, with operations spanning the Americas, Europe, the Middle East, Africa, and the Asia Pacific, as shown by its 2025-12-31 data. This diversified geographic presence helps mitigate regional economic risks and captures demand from various markets.

The moat trend for FTNT appears to be strengthening, supported by its consistent revenue growth of 14.2% year-over-year. This growth indicates sustained demand for its cybersecurity offerings and the company’s ability to capture market share in a rapidly expanding industry. Unfortunately, no transcript is available for a direct quote to illustrate management’s view on their strategic advantages or future outlook. However, Fortinet’s continuous innovation in threat detection and prevention, coupled with its integrated Security Fabric architecture, suggests a durable competitive advantage that is likely to persist and expand in the face of evolving cyber threats.

When evaluating FTNT stock, it’s essential to consider its standing against key competitors. Fortinet’s comprehensive security platform offers a distinct value proposition compared to peers like FTNT vs ADSK, Autodesk, a leader in design software, or FTNT vs CRWV, CrowdStrike, which specializes in endpoint security. While Autodesk operates in a different software niche, both CrowdStrike and Fortinet compete directly in the cybersecurity space, each with its unique strengths. Comparing FTNT vs INFY, Infosys, a global IT consulting and services company, further highlights Fortinet’s specialized focus on security solutions. These comparisons are vital for investors assessing FTNT valuation and its market position.

Fortinet, Inc. analyst rating

Based on 68 analysts. 44.1% rate FTNT Buy or Strong Buy.

A 44.1% “Buy” rating for FTNT stock from 68 analysts within the Technology sector is a respectable figure, though not overwhelmingly strong, particularly given the sector’s growth potential. Many high-growth technology companies often see a higher proportion of “Strong Buy” or “Buy” recommendations, indicating that while analysts see value, a significant portion remain cautious with a “Hold” rating.

Is FTNT undervalued or overvalued?

Evaluating FTNT valuation requires a close look at its key metrics. Fortinet’s P/E ratio stands at 32.54x, which is notably lower than the Software – Infrastructure sector average of 44.3x. This suggests that FTNT stock currently trades at a discount relative to its industry peers on an earnings basis, potentially signaling that it is undervalued, or at least fairly priced with room for appreciation. Investors asking “is FTNT a good stock” might view this P/E discount as an attractive entry point.

Furthermore, the discounted cash flow (DCF) model provides an estimated fair value for FTNT stock at $88.87, implying a 9.5% upside from its current trading price. This DCF analysis supports the notion that Fortinet’s intrinsic value might be higher than its market price, indicating potential undervaluation. Coupled with its robust revenue growth and impressive profitability margins, the FTNT valuation story presents a compelling case for further consideration by investors looking for growth at a reasonable price in the cybersecurity space.

FTNT financial health & key metrics

For value investors, FTNT stock presents a mixed but generally attractive financial profile. While some valuation metrics might appear high, its P/E ratio of 32.54x is considerably lower than the sector average, suggesting that on an earnings basis, the stock may offer a relatively good FTNT valuation. The company demonstrates exceptional profitability with a net margin of 27.26%, indicating efficient operations. Although the debt-to-equity ratio of 0.81x is moderate, Fortinet’s consistent revenue growth of 14.2% and a FCF yield of 3.69% point to a healthy, expanding business that generates ample cash. The DCF fair value of $88.87 further supports the idea that the FTNT stock is reasonably priced with potential for upside.

Fortinet, Inc. earnings history & next report

Fortinet, Inc. reported EPS of $0.81, beating estimates by 9.02%. Next earnings: 2026-05-06 with EPS estimate of $0.62.

As Fortinet approaches its next earnings report on 2026-05-06, with an EPS estimate of $0.62, investors will be closely watching several key areas. Beyond merely meeting or beating the EPS estimate, the guidance provided for future quarters will be critical, especially concerning revenue growth projections and any updates on their cybersecurity platform adoption. Any commentary on Fortinet’s ability to maintain its impressive margins amidst a competitive landscape and its strategic initiatives for expanding market share will be vital for assessing the future trajectory of FTNT stock.

FTNT daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.