We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fortinet Stock Before Q2 Earnings: Buy Now or Wait for Results?
Read MoreHide Full Article
Key Takeaways
{\"0\":\"FTNT reports Q2 2025 earnings on Aug. 6 with revenue expectations of $1.59-$1.65 billion.\",\"1\":\"Fortinet launched FortiGate 700G series, delivering 7X higher firewall performance than competitors.\",\"2\":\"Company achieved record Q1 margins of 34% with strong SASE billings growth of 18% year over year.\"}
For the second quarter of 2025, Fortinet expects revenues in the range of $1.59-$1.65 billion. It anticipates non-GAAP earnings per share in the band of 58-60 cents.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.62 billion, suggesting year-over-year growth of 12.9%.
The consensus mark for earnings is pinned at 59 cents per share, which has remained unchanged over the past 30 days. The estimate indicates a year-over-year increase of 3.51%.
Image Source: Zacks Investment Research
FTNT Earnings Surprise History
In the last reported quarter, the company delivered an earnings surprise of 9.43%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.83%.
Our proven model does not predict an earnings beat for Fortinet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Fortinet entered the second quarter of 2025 with exceptional momentum following a record-setting first quarter that successfully delivered 14% revenue growth to $1.54 billion and achieved a record operating margin of 34%. The company's strong first-quarter performance was driven by a record free cash flow of $783 million and robust growth in strategic focus areas, with Unified SASE billings increasing 18% and accounting for 25% of total business, while AI-driven secure operations billings surged 29% to represent 10% of the business.
During the second quarter, Fortinet launched the highly anticipated FortiGate 700G series, a next-generation firewall that delivered up to 7x higher firewall throughput and 4x better threat protection compared to competitors while consuming 7x less power per gigabit. This innovative product, powered by Fortinet's proprietary Network Processor 7 and Security Processor 5 ASIC technologies, incorporates advanced AI-powered threat detection through FortiAI-Protect and post-quantum cryptography readiness, positioning the company to capture increased market share in the campus security segment.
The company further strengthened its comprehensive product portfolio in June with the strategic unveiling of its advanced AI-powered workspace security suite, including FortiMail Workspace Security enhancements and powerful FortiDLP upgrades that extended protection beyond email to include browser and collaboration security. July brought additional validation when Fortinet was recognized as a Leader in the 2025 Gartner Magic Quadrant for SASE Platforms and ranked #1 in the Secure Branch Network Modernization use case.
Building on the first-quarter's exceptionally strong new customer acquisition of more than 6,300 new logos representing 14% growth, driven by strategic channel partner investments, and the company's maintained position as the number one deployed firewall vendor worldwide and market leader in SD-WAN and OT security, these highly strategic product launches and significant industry recognition positioned Fortinet for strong second-quarter 2025 financial results and demonstrate continued strong market leadership.
While the competitive landscape remains fierce from rivals like Palo Alto Networks (PANW - Free Report) , Zscaler (ZS - Free Report) and CrowdStrike (CRWD - Free Report) , Fortinet’s focus on reducing complexity, expanding sales capacity, and accelerating SASE adoption positions it for durable long-term growth, making it a smart buy choice for investors ahead of second-quarter 2025 results.
Top-Line Growth Estimates for Q2
Our model estimate for second-quarter 2025 Americas revenues is pegged at $664.8 million, indicating 11.7% growth from the figure reported in the year-ago quarter.
Our model estimate for Asia Pacific and Japan revenues is pinned at $324.6 million, indicating growth of 18.6% from the figure reported in the year-ago quarter.
Our model estimate for Europe, Middle East and Africa revenues is pegged at $629.5 million, suggesting a 11.4% decrease from the figure reported in the year-ago quarter.
Our model estimate for second-quarter 2025 total billings is pegged at $1.73 billion, indicating a 12.3% decrease from the figure reported in the year-ago quarter.
FTNT Price Performance & Stock Valuation
Shares of Fortinet have gained 4.9% in the year-to-date period, outperforming the Computer and Technology sector and the S&P 500 index’s decline of 9.1% and 5.7%, respectively.
The company’s outperformance can be attributed to its establishment as a leading provider of SASE solutions. SASE adoption is accelerating across enterprises, and to keep pace, Fortinet continuously enhances FortiOS, integrating advanced networking and security into a unified platform.
FTNT’s YTD Price Performance
Image Source: Zacks Investment Research
Fortinet’s valuation may be a concern for some investors. The stock is trading at a significant premium compared to the broader Zacks Security industry. As of the latest data, FTNT’s Price/Book ratio hovers around 37.97, well above the industry’s 17.52, reflecting investors' high growth expectations. The Value Score of F further reinforces a stretched valuation for Fortinet at this moment.
FTNT Trades at a Premium
Image Source: Zacks Investment Research
Investment Considerations
Fortinet represents a compelling investment opportunity despite premium valuation, as the company's record-setting first-quarter performance with 34% operating margins and strategic product launches position it for exceptional second-quarter results. The groundbreaking FortiGate 700G series delivers 7x higher performance and AI-powered security innovations demonstrate sustainable competitive advantages that justify premium pricing. With 18% Unified SASE growth, market-leading positions in firewalls and SD-WAN, and Gartner Magic Quadrant Leadership recognition, Fortinet continues expanding its market share against competitors. Strong customer acquisition exceeding 6,300 new logos and robust free cash flow generation provide a foundation for continued outperformance, making the current valuation attractive before anticipated second-quarter strength.
Conclusion
Fortinet's exceptional first-quarter momentum, groundbreaking FortiGate 700G launch, and market-leading SASE growth create compelling catalysts for strong second-quarter performance. With record margins, robust customer acquisition, and continued innovation leadership, investors should strategically capitalize on current opportunities before anticipated earnings strength potentially drives significant stock appreciation heading into the August results.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fortinet Stock Before Q2 Earnings: Buy Now or Wait for Results?
Key Takeaways
Fortinet (FTNT - Free Report) is slated to report second-quarter 2025 results on Aug. 6.
For the second quarter of 2025, Fortinet expects revenues in the range of $1.59-$1.65 billion. It anticipates non-GAAP earnings per share in the band of 58-60 cents.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.62 billion, suggesting year-over-year growth of 12.9%.
The consensus mark for earnings is pinned at 59 cents per share, which has remained unchanged over the past 30 days. The estimate indicates a year-over-year increase of 3.51%.
Image Source: Zacks Investment Research
FTNT Earnings Surprise History
In the last reported quarter, the company delivered an earnings surprise of 9.43%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.83%.
Fortinet, Inc. Price and EPS Surprise
Fortinet, Inc. price-eps-surprise | Fortinet, Inc. Quote
Earnings Whispers for DDOG
Our proven model does not predict an earnings beat for Fortinet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
FTNT has an Earnings ESP of 0.00% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Upcoming Results of FTNT
Fortinet entered the second quarter of 2025 with exceptional momentum following a record-setting first quarter that successfully delivered 14% revenue growth to $1.54 billion and achieved a record operating margin of 34%. The company's strong first-quarter performance was driven by a record free cash flow of $783 million and robust growth in strategic focus areas, with Unified SASE billings increasing 18% and accounting for 25% of total business, while AI-driven secure operations billings surged 29% to represent 10% of the business.
During the second quarter, Fortinet launched the highly anticipated FortiGate 700G series, a next-generation firewall that delivered up to 7x higher firewall throughput and 4x better threat protection compared to competitors while consuming 7x less power per gigabit. This innovative product, powered by Fortinet's proprietary Network Processor 7 and Security Processor 5 ASIC technologies, incorporates advanced AI-powered threat detection through FortiAI-Protect and post-quantum cryptography readiness, positioning the company to capture increased market share in the campus security segment.
The company further strengthened its comprehensive product portfolio in June with the strategic unveiling of its advanced AI-powered workspace security suite, including FortiMail Workspace Security enhancements and powerful FortiDLP upgrades that extended protection beyond email to include browser and collaboration security. July brought additional validation when Fortinet was recognized as a Leader in the 2025 Gartner Magic Quadrant for SASE Platforms and ranked #1 in the Secure Branch Network Modernization use case.
Building on the first-quarter's exceptionally strong new customer acquisition of more than 6,300 new logos representing 14% growth, driven by strategic channel partner investments, and the company's maintained position as the number one deployed firewall vendor worldwide and market leader in SD-WAN and OT security, these highly strategic product launches and significant industry recognition positioned Fortinet for strong second-quarter 2025 financial results and demonstrate continued strong market leadership.
While the competitive landscape remains fierce from rivals like Palo Alto Networks (PANW - Free Report) , Zscaler (ZS - Free Report) and CrowdStrike (CRWD - Free Report) , Fortinet’s focus on reducing complexity, expanding sales capacity, and accelerating SASE adoption positions it for durable long-term growth, making it a smart buy choice for investors ahead of second-quarter 2025 results.
Top-Line Growth Estimates for Q2
Our model estimate for second-quarter 2025 Americas revenues is pegged at $664.8 million, indicating 11.7% growth from the figure reported in the year-ago quarter.
Our model estimate for Asia Pacific and Japan revenues is pinned at $324.6 million, indicating growth of 18.6% from the figure reported in the year-ago quarter.
Our model estimate for Europe, Middle East and Africa revenues is pegged at $629.5 million, suggesting a 11.4% decrease from the figure reported in the year-ago quarter.
Our model estimate for second-quarter 2025 total billings is pegged at $1.73 billion, indicating a 12.3% decrease from the figure reported in the year-ago quarter.
FTNT Price Performance & Stock Valuation
Shares of Fortinet have gained 4.9% in the year-to-date period, outperforming the Computer and Technology sector and the S&P 500 index’s decline of 9.1% and 5.7%, respectively.
The company’s outperformance can be attributed to its establishment as a leading provider of SASE solutions. SASE adoption is accelerating across enterprises, and to keep pace, Fortinet continuously enhances FortiOS, integrating advanced networking and security into a unified platform.
FTNT’s YTD Price Performance
Image Source: Zacks Investment Research
Fortinet’s valuation may be a concern for some investors. The stock is trading at a significant premium compared to the broader Zacks Security industry. As of the latest data, FTNT’s Price/Book ratio hovers around 37.97, well above the industry’s 17.52, reflecting investors' high growth expectations. The Value Score of F further reinforces a stretched valuation for Fortinet at this moment.
FTNT Trades at a Premium
Image Source: Zacks Investment Research
Investment Considerations
Fortinet represents a compelling investment opportunity despite premium valuation, as the company's record-setting first-quarter performance with 34% operating margins and strategic product launches position it for exceptional second-quarter results. The groundbreaking FortiGate 700G series delivers 7x higher performance and AI-powered security innovations demonstrate sustainable competitive advantages that justify premium pricing. With 18% Unified SASE growth, market-leading positions in firewalls and SD-WAN, and Gartner Magic Quadrant Leadership recognition, Fortinet continues expanding its market share against competitors. Strong customer acquisition exceeding 6,300 new logos and robust free cash flow generation provide a foundation for continued outperformance, making the current valuation attractive before anticipated second-quarter strength.
Conclusion
Fortinet's exceptional first-quarter momentum, groundbreaking FortiGate 700G launch, and market-leading SASE growth create compelling catalysts for strong second-quarter performance. With record margins, robust customer acquisition, and continued innovation leadership, investors should strategically capitalize on current opportunities before anticipated earnings strength potentially drives significant stock appreciation heading into the August results.