Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Fortinet, Inc.

FTNT · Nasdaq · Technology

Fundamental quality

EXCELLENT

93

out of 100

Fortinet, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 136.7%) with wide margins (net margin 28.2%) and a business that keeps growing (21.4% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Fortinet sells network security: its FortiGate firewalls protect the perimeter of hundreds of thousands of companies, with the twist that it designs its own chips to do it faster and cheaper than rivals.

What will shape its future

  • Sustained cybersecurity spending and the firewall refresh cycle.
  • Its expansion into cloud security and SASE, where it fights Zscaler and Palo Alto.
  • Its in-house chips (ASICs), the cost edge behind its elite margins.

Breakdown by area

I.Growth
92

EPS growth: 33.4% · Revenue growth: 21.4%

II.Profitability
93

Net margin: 28.2% · ROE: 136.7%

III.Financial health
95

Net debt/EBITDA: -0.94x · FCF: 41.4%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 76%
ROEbeats 98%
Growthbeats 69%
Cash generationbeats 95%
Less debtbeats 86%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Fortinet, Inc. strengths

  • Outstanding return on equity (ROE of 136.7%): it puts shareholder capital to good use.
  • Excellent free-cash-flow generation (FCF margin of 41.4%): profit turns into real cash.
  • High gross margin (80.2%), pointing to pricing power.
  • Growing earnings per share (33.4% annualized).

Fortinet, Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Fortinet, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20202,594489958-1,062
20213,3426071,204-331
20224,4178571,449-692
20235,3051,1481,731-406
20245,9561,7451,879-1,882
20256,8001,8532,226-1,499

Between 2020 and 2025, revenue went from $2,594M to $6,800M (+162%) and net income went from $489M to $1,853M (+279%). Meanwhile, its margins have widened (from 19% to 27%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+23%
  • Net income+30.6%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Net margin27.5%28.2%
  • ROE197.5%136.7%
  • FCF margin34.3%41.4%
  • Net debt/EBITDA-0.73×-0.94×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Fortinet, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Fortinet, Inc. a good company to invest in?

In terms of business quality, Fortinet, Inc. scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Fortinet, Inc. a profitable company?

Very. Fortinet, Inc. shows a net margin of 28.2% and an ROE of 136.7%, typical of a highly profitable business.

Does Fortinet, Inc. have a lot of debt?

No. Fortinet, Inc. has a net cash position: more cash than debt.

Is Fortinet, Inc. growing?

Its revenue has grown 21.4% annualized in recent years and its earnings per share 33.4%, and without interruption since 2020.

Does Fortinet, Inc. generate cash?

Yes. It converts about 41.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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