Fortinet, Inc.(FTNT)Stock Analysis
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Rank #69 of 2,879 stocksTOP 5%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
FTNT Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Fortinet, Inc. (FTNT), a Technology sector company. 13F Pro's AI-powered ranking engine scores FTNT at 78.1/100 on a 32-signal composite quality model, placing it at rank #69 of 2,879 stocks — the top 5% of the AI-ranked universe. FTNT scores in the top quartile across balance sheet strength (95.7), free cash flow (89.9), profitability (89.2). Areas of concern include institutional flow (7.6), which score below median versus the broader universe. Shareholder dilution risk is elevated at 28.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), Fortinet, Inc. reports quarterly revenue of $1.8B, net income of $534.5M, an operating margin of 31.4%. Top institutional holders of FTNT by reported 13-F value include BlackRock,, STATE STREET, GEODE CAPITAL MANAGEMENT,, based on the most recent SEC filings. FTNT trades on the Nasdaq exchange and files with the SEC under CIK 1262039. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate FTNT daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Fortinet, Inc. directly from SEC EDGAR. Fortinet, Inc.'s 13F Pro composite quality score has ranged between 8 and 86 since 2021, currently 78.1 — a declining long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving FTNT's Business? Latest 10-Q Breakdown
✓ 27/27 datapoints verifiedAI-extracted from Fortinet, Inc.'s 10-Q filed 2026-05-08 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Total revenue grew 20% YoY to $1.85B, driven by 41% product revenue growth and 11% service revenue growth, with operating income up 28% to $580M.
Biggest Revenue Drivers
Total revenue: $1.85B+20% YoY
Driven by security subscription revenue growth of 11% and technical support revenue growth of 12%, from growing deferred revenue balance and strength in unified SASE and SecOps.
Growth in secure networking hardware and term licenses, increased demand for higher performance products, AI infrastructure deployments, technology upgrades, and upsell activity; recent pricing changes contributed low single digit impact.
Largest Expense Items
Increase of $73.1M in personnel-related costs, $14.7M in marketing program expenses, and unfavorable foreign currency impacts.
Increase of $16.2M in personnel-related costs from higher headcount and compensation to support product development and enhancements.
Service revenue growth outpaced labor cost increases, partially offset by higher data center and cloud services expansion costs.
Third-party contract manufacturers' costs and materials; favorable product mix shift offset by reduced inventory reserve benefit and increased memory chip costs.
Margins: Gross margin decreased 0.7 percentage points to 80.3%, primarily driven by 5.1 percentage point revenue mix shift from service to lower-margin product revenue. Operating margin increased 1.9 percentage points to 31.4% as revenue growth outpaced expense growth, yielding improved operating leverage.
Watch Items from the Filing
- Three distributors represent 28%, 15%, and 12% of total revenue; one distributor accounts for 28% of accounts receivable as of March 31, 2026, concentrating customer and collection risk.
- Deferred revenue of $7.35B grew only 3% from December 31, 2025, indicating slower growth in committed future revenue despite 20% total revenue growth, suggesting potential slowing in billings momentum.
- Inventory purchase commitments increased $555M to $1.37B as of March 31, 2026 to secure supply amid component constraints and rising costs; non-cancelable obligations present downside risk if demand softens.
- Consolidated securities class action and derivative litigation pending alleging misleading statements about 2026 firewall refresh cycle; outcome uncertain and no loss accrual recorded as of March 31, 2026.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$1.8B
Net Income
Q1 2026
$534.5M
Free Cash Flow
Q1 2026
$1.0B
Operating Margin
Q1 2026
31.4%
D/E Ratio
Q1 2026
0.50
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+12.3% YoYNet Income
+52.0% YoYOperating Income
+45.3% YoYEPS (Diluted)
+54.8% YoYTotal Assets
+34.5% YoYTotal Debt
+0.2% YoYOp. Cash Flow
+16.7% YoY| Metric | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $5.96B +12.3% | $5.30B +20.1% | $4.42B +32.2% | $3.34B +28.8% | $2.59B +19.9% | $2.16B |
| Net Income | $1.75B +52.0% | $1.15B +33.9% | $857.3M +41.3% | $606.8M +24.2% | $488.5M +47.3% | $331.7M |
| Operating Income | $1.80B +45.3% | $1.24B +28.0% | $969.6M +49.1% | $650.4M +22.3% | $531.8M +51.5% | $351.0M |
| EPS (Diluted) | $2.26 +54.8% | $1.46 +37.7% | $1.06 +626.0% | $0.15 +25.9% | $0.12 -69.5% | $0.38 |
| Total Assets | $9.76B +34.5% | $7.26B +16.6% | $6.23B +5.2% | $5.92B +46.3% | $4.04B +4.3% | $3.88B |
| Total Debt | $994.3M +0.2% | $992.3M +0.2% | $990.4M +0.2% | $988.4M | $0.00 | — |
| Operating Cash Flow | $2.26B +16.7% | $1.94B +11.8% | $1.73B +15.4% | $1.50B +38.4% | $1.08B +34.1% | $808.0M |
AI Insight: FTNT Financial Trends
Fortinet's Q1 2026 operating cash flow surged to $1,077M — its highest in the dataset — while debt was cut nearly in half to $497M.
• Revenue grew 29% year-over-year from $1,434M in Q2 2024 to $1,850M in Q1 2026, showing consistent top-line acceleration.
• Operating income expanded from $437M in Q2 2024 to $626M in Q4 2025, with Q1 2026 at $580M — structurally higher than a year ago.
• Total debt dropped sharply from $995M–$996M across Q2 2024–Q4 2025 to $497M in Q1 2026, significantly improving the balance sheet.
• Equity declined from $2,060M in Q2 2025 to $735M in Q3 2025 then recovered partially to $990M in Q1 2026, indicating volatility likely from buybacks.
⚠ Equity remains well below the Q1 2025 peak of $1,963M; sustained buyback activity could further compress the equity base.
⚠ Net income of $534M in Q1 2026 still trails Q3 2024's $540M despite materially higher revenue — monitor margin efficiency.
⚠ Operating cash flow swings are wide — from $342M to $1,077M — making free cash flow visibility a key metric to track each quarter.
AI Insight: FTNT Ratio Trends
Fortinet's operating margins are holding in the 28–35% band, but ROIC has contracted sharply from 99.0% in Q3 2024 to 60.0% by Q2 2025, signaling diminishing capital efficiency.
• Operating margin oscillated between 28.1% (Q2 2025) and 34.6% (Q4 2024), showing seasonal variability but no sustained expansion.
• ROIC fell from 99.0% in Q3 2024 to 61.4% in Q1 2025 and 60.0% in Q2 2025 — a roughly 39pp decline in two quarters.
• Debt/Equity dropped sharply from 3.45 in Q2 2024 to 0.48 in Q2 2025, indicating meaningful deleveraging over four quarters.
• ROA recovered to 21.6% in Q1 2026 from a trough of 16.5% in Q2 2025, suggesting improving asset productivity.
⚠ ROIC data is absent from Q3 2025 onward — monitor next disclosure to confirm whether the 60% floor held or deteriorated further.
⚠ D/E rebounded from 0.48 in Q2 2025 to 1.35 in Q3 2025 before easing to 0.50 — leverage volatility warrants monitoring.
⚠ Operating margin dipped to 28.1% in Q2 2025, the weakest quarter in the dataset; watch whether Q2 2026 repeats this seasonal trough.
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Available Research
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Top Institutional Holders of FTNT
BlackRock, Inc.
$5.1B61,968,733 shSTATE STREET CORP
$2.4B28,929,635 shGEODE CAPITAL MANAGEMENT, LLC
$1.4B17,461,777 shBank of New York Mellon Corp
$1.1B13,333,083 shFIRST TRUST ADVISORS LP
$940.3M11,506,173 shInvesco Ltd.
$817.6M10,005,263 shARROWSTREET CAPITAL, LIMITED PARTNERSHIP
$788.7M9,651,024 shGOLDMAN SACHS GROUP INC
$733.6M8,976,963 shMORGAN STANLEY
$722.8M8,844,318 shAQR CAPITAL MANAGEMENT LLC
$627.9M7,771,945 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $5.1B | 61,968,733 |
| STATE STREET CORP | $2.4B | 28,929,635 |
| GEODE CAPITAL MANAGEMENT, LLC | $1.4B | 17,461,777 |
| Bank of New York Mellon Corp | $1.1B | 13,333,083 |
| FIRST TRUST ADVISORS LP | $940.3M | 11,506,173 |
| Invesco Ltd. | $817.6M | 10,005,263 |
| ARROWSTREET CAPITAL, LIMITED PARTNERSHIP | $788.7M | 9,651,024 |
| GOLDMAN SACHS GROUP INC | $733.6M | 8,976,963 |
| MORGAN STANLEY | $722.8M | 8,844,318 |
| AQR CAPITAL MANAGEMENT LLC | $627.9M | 7,771,945 |
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Popular Research
Is FTNT a good stock to buy?
13F Pro's AI-powered analysis of Fortinet, Inc. (FTNT) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for FTNT are available on the FTNT stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own FTNT?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling FTNT. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Fortinet, Inc.'s investment landscape.