Cyber attacks are becoming more complex, IT landscapes more fragmented and security requirements are increasing. Fortinet provides a comprehensive answer.
Big players in the shadow of the hype
Fortinet has been a major player in the global cybersecurity market for years. The company has consistently positioned itself as a specialist in network security and today covers a broad spectrum of security requirements.
Firewalls, VPN solutions, endpoint protection, cloud security and management software interlock and form an integrated platform.
It is precisely this depth and integration that sets Fortinet apart from many of its competitors, which often consist of individual solutions that are only brought together at a later date.
The historical core of the business lies in the firewall segment. Here, Fortinet is one of the most important providers with a market share of around 55 percent. This strong position is no coincidence, but the result of years of investment in its own hardware, specialized security processors and an operating system consistently optimized for performance.
While many providers rely on standard chips, Fortinet controls a large part of the added value itself. This reduces costs, increases margins and allows security functions to be provided without any noticeable loss of performance. This is a decisive factor, especially in large networks.
The end of the classic network
At the same time, the market has changed fundamentally. Corporate networks are no longer clearly demarcated. Cloud applications, mobile end devices and home office workstations have made traditional perimeter security largely obsolete. Fortinet addresses this change with the Secure Access Service Edge model (SASE).
SASE combines network functions and security mechanisms in a cloud-based architecture. Users receive secure access to applications, regardless of where they are located. For companies, this means less complexity and more control, especially in hybrid IT environments.
SASE is a key growth driver within the Group and recently recorded a 40% increase in billings.
In addition to traditional IT, another field is increasingly coming into focus. The protection of industrial systems, also known as operational technology, is becoming increasingly important. Production facilities, energy suppliers and critical infrastructures are now networked and therefore vulnerable to attack.
Fortinet recognized early on that industrial networks have different requirements than office IT. Specialized solutions for OT security expand the portfolio and open up new customer segments with a high barrier to entry.
Alliances with Nvidia and Google
Another growth driver is the service business. Fortinet no longer just sells hardware and licenses. Managed security services take over the ongoing monitoring, analysis and response to security incidents. Customers thus outsource part of their security responsibility.
For Fortinet, this means predictable, recurring revenues and closer customer loyalty. This area now accounts for almost two thirds of sales.
Partnerships play a central role here. Cooperation with Nvidia is particularly strategically relevant. The integration of FortiGate VM on Nvidia's BlueField 3 DPUs makes the protection of AI infrastructures significantly more powerful.
The cooperation with Google Cloud also strengthens the position in the cloud security sector. As a unified security partner, Fortinet is deeply integrated into the Google Cloud environment. The FortiCNAPP solution, which addresses cloud risks holistically, is particularly noteworthy.
Outlook and evaluation
One would think that this positioning and the alliances with Nvidia and Google would lead to a correspondingly positive sentiment towards Fortinet. However, this is not the case, at least not in the recent past.
The share price has been developing cautiously for some time, although the business figures are convincing.
A few days ago, the company presented its figures for the final quarter of 2025.
At USD 0.81 per share, earnings were well above expectations of USD 0.75. With revenue of USD 1.91 billion, analysts' estimates of USD 1.86 billion were also exceeded.
For the year as a whole, this corresponds to a 15 % increase in sales and a 10 % rise in profits.
Sales increased by 14% to USD 6.80 billion and earnings by 7% to USD 2.42 per share in the financial year just ended.
This shows that growth momentum has picked up again over the course of the year.
Due to the business model, however, the most important Kennzahl however, is the free cash flow, which increased by 18% to USD 2.21 billion. The FCF margin improved from 31.6% to 32.5%.
This positive development is likely to continue in the 2026 financial year. Fortinet is forecasting an increase in revenue to USD 7.50 - 7.70 billion and an increase in earnings to USD 2.94 - 3.00 per share.
This corresponds to an increase in revenue of at least 10% and a 22% increase in earnings.
Fortinet thus has a forward P/E of 27.9, compared with an average P/E of 40 over the last five years.
On a cash flow basis, the valuation is still somewhat lower
Fortinet share: Chart from 09.02.2026, price: USD 82.76 - symbol: FTNT | source: TWS
Fortinet has undergone a protracted correction, but remains bullish over the long term.
If a sustained breakout above USD 87 now succeeds, a procyclical buy signal with possible price targets of USD 93 and USD 100 would be issued.
If, on the other hand, Fortinet falls back below USD 81, further price losses to the upward trend or to support at USD 73 are conceivable.
Below USD 73, the chart picture would become noticeably gloomier.
Source
