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With a market cap of $73.9 billion, Fortinet, Inc. (FTNT) provides cybersecurity and convergence of networking and security solutions worldwide. Based in Sunnyvale, California, the company offers secure networking solutions that focus on the convergence of networking and security, network firewall solutions, wireless local area network (LAN) solutions, and secure connectivity solutions.
The company is set to report its Q1 earnings on Wednesday, May 7, after the market closes. Ahead of the event, analysts expect FTNT to report an EPS of $0.45 per share, up 15.4% from $0.39 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in all of the past four quarters, which is impressive. Its EPS of $0.67 in the recent quarter surpassed the analysts’ expectations by 28.9%, driven by higher demand for cybersecurity solutions worldwide.
For fiscal 2025, analysts expect FTNT to report an EPS of $2.12, up 1.4% from $2.09 in fiscal 2024. Moreover, in fiscal 2026, its EPS is expected to grow 12.7% year-over-year to $2.39.
Over the past year, FTNT shares have surged 48.7%, significantly outperforming the S&P 500 Index’s ($SPX) 5.4% gains and the Technology Select Sector SPDR Fund’s (XLK) 3% decline over the same time frame.
FTNT shares dropped marginally following its Q4 results on Feb. 6. The company reported a 17% year-over-year increase in its revenue, which amounted to $1.7 billion. Moreover, the company reported a non-GAAP operating margin of 39%, as well as an 18% growth in its product revenue, which amounted to $574 million.
The consensus opinion on FTNT stock is somewhat optimistic, with an overall “Moderate Buy” rating. Out of the 39 analysts covering the stock, 13 recommend a “Strong Buy,” 24 suggest a “Hold,” and two recommend a “Strong Sell.” Its mean price target of $112.70 indicates a 17.2% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
