NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-08-31
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Create your account →Warn: Primary pillar under pressure — EPS reaches about $3.13: FY26 EPS guidance $3.44 vs target $3.13.
Fortinet grows revenue about 14% a year to nearly $7.8 billion in 2026. Profit per share is on track to reach $3.13. The company keeps strong cash flow, with $1.08 billion in operating cash flow last quarter. Fortinet leads in cybersecurity with new products like FortiSOC.
Revenue growth could slow below 14% if demand weakens. Profit margins may shrink if costs rise. The recent guidance cut shows risks to earnings growth. Competition in cybersecurity is intense and could pressure results.
The price is about 44% above our fair value near $110. Analysts expect 14% revenue growth, which is roughly in line with management targets. The market is optimistic, but the recent guidance cut and pullback suggest risks to this view.
Breaks if: EPS falls below $2.68 in FY26
Breaks if: Operating cash flow falls below $900 million per quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent revenue and earnings growth. The current thesis state is stable, supported by recent earnings beats and strong cash flow.
The valuation is considered expensive compared to peers, reflecting high expectations for continued growth. The market seems to have priced in a strong performance trajectory, with a low expectations gap.
Fundamentals are likely to continue their positive trajectory, as management is on track to meet revenue and earnings targets. However, there is a moderate risk due to the sector backdrop, which could impact performance.
The thesis hinges on the performance of sector bellwethers like MSFT, ORCL, and PLTR. If these companies continue to perform well, FTNT could benefit from the tech sector momentum; conversely, any misses could negatively affect sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this view. A new partnership enhances Fortinet's market position and revenue potential. Demand for AI-driven security and SASE Firewall innovation is surging. There are no current threats to the thesis.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Sustain robust operating cash flow to support business growth and capital allocation priorities.
Stated as a priority in 4 of last 4 quarters. Operating cash flow rose from $620 million in 2025-Q4 to $1.04 billion in 2026-Q2, demonstrating strong cash generation supporting growth and capital needs. The trajectory is delivering sustained cash flow strength.
“Operating cash flow of $1.04 billion in second quarter 2026.”
“Record operating cash flow of $1.08 billion in first quarter 2026.”
“Cash flow from operations was $620 million in fourth quarter 2025.”
“Cash flow from operations was $655 million in third quarter 2025.”
Breaks if: Annual revenue falls below $7.4 billion in FY26
Overall, FTNT's strong financial performance and management execution support a positive long-term view. Not investment advice.
