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The AI revolution is causing cybersecurity threats to proliferate.
FTNT has seen a 60% surge in enterprise demand over $1 million.
A pullback offers investors an opportunity to get positioned.
Fortinet Company Overview
Zacks Rank #1 (Strong Buy) company Fortinet ((FTNT - Free Report) ) is a cybersecurity leader, driving the convergence of networking and security. The Sunnyvale, CA-based company provides integrated security solutions to enterprises, service providers, and government entities across 100 countries. Through its products and subscription services, Fortinet provides protection against dynamic security threats while simplifying IT security infrastructure. Its solutions defend against multiple attack categories without impacting network performance, enabling customers to implement security policies on traffic between internal and external networks. Simply put, Fortinet protects organizations from digital threats, including hackers and computer viruses.
AI: A Massive Cybersecurity Catalyst
The current artificial intelligence buildout is unprecedented in terms of size and scope. In fact, a staggering 50% of Q1 2026 GDP growth can be attributed to massive CAPEX spending by big tech companies like Alphabet ((GOOGL - Free Report) ), Meta Platforms ((META - Free Report) ), and Microsoft ((MSFT - Free Report) ).
While the AI revolution has bolstered the economy and produced many winners in AI infrastructure and semiconductors, it also comes with its own set of problems. One of the least-discussed downsides of AI technology is that hackers and bad actors can weaponize it. In other words, as AI proliferates throughout the economy, so does the number of threats from automated, high-frequency vectors.
The increase in threats is a massive long-term catalyst for cybersecurity leaders like Fortinet. Below are three ways Fortinet fights AI-powered security threats:
· Securing AI Data Centers: Fortinet’s technology helps to run AI applications that require extreme network speeds. Fortinet’s custom-built computer chips (ASICs) and partnership with AI leader NVIDIA ((NVDA - Free Report) ) give the company a competitive edge.
· Fighting AI-Powered Attacks: FortiAI, Fortinet’s in-house machine learning engine, helps to stop the faster, smarter attacks that are synonymous with the latest AI technology.
· Generative AI Assistant: FortiAI-Assist helps save customer time and streamline IT workloads by automating security alert investigations and troubleshooting network errors.
Fortinet: Steady, Reliable Earnings Growth
Fortinet’s success securing large enterprise contracts through the first quarter of 2026 demonstrates strong market validation and creates predictable revenue streams. The company reported that deals of $1 million or more have increased by 60%. For this reason, it is no surprise that the company has consistently grown its top-and bottom-line financials for years. Zacks Consensus Estimates suggest that revenues will in the double-digits through 2027.
Image Source: Zacks Investment Research
Meanwhile, Fortinet consistently beats Wall Street expectations. Over the past four quarters, the company has delivered an average EPS surprise of 17.46%.
Image Source: Zacks Investment Research
FTNT: Powerful Price Action & a Bullish Chart
FTNT shares have exhibited extreme power. Year-to-date, FTNT is up 91.2% while the S&P 500 Index is up 7.8%.
Image Source: Zacks Investment Research
Additionally, while the Nasdaq 100 Index ETF ((QQQ - Free Report) ) is nearly in correction territory and is well below its 10-week moving average, FTNT is finding support there. The first retreat to the moving average after a blistering move higher presents investors with an attractive reward-to-risk profile.
Image Source: TradingView
Bottom Line
As the age of artificial intelligence takes the world by storm, Fortinet’s cybersecurity solutions are in high demand. With expanding enterprise contracts and consistent earnings performance, FTNT remains a standout leader in its industry.
View the Zacks #1 Rank List
Image: Bigstock
Fortinet: Securing the AI Revolution
Key Takeaways
Fortinet Company Overview
Zacks Rank #1 (Strong Buy) company Fortinet ((FTNT - Free Report) ) is a cybersecurity leader, driving the convergence of networking and security. The Sunnyvale, CA-based company provides integrated security solutions to enterprises, service providers, and government entities across 100 countries. Through its products and subscription services, Fortinet provides protection against dynamic security threats while simplifying IT security infrastructure. Its solutions defend against multiple attack categories without impacting network performance, enabling customers to implement security policies on traffic between internal and external networks. Simply put, Fortinet protects organizations from digital threats, including hackers and computer viruses.
AI: A Massive Cybersecurity Catalyst
The current artificial intelligence buildout is unprecedented in terms of size and scope. In fact, a staggering 50% of Q1 2026 GDP growth can be attributed to massive CAPEX spending by big tech companies like Alphabet ((GOOGL - Free Report) ), Meta Platforms ((META - Free Report) ), and Microsoft ((MSFT - Free Report) ).
While the AI revolution has bolstered the economy and produced many winners in AI infrastructure and semiconductors, it also comes with its own set of problems. One of the least-discussed downsides of AI technology is that hackers and bad actors can weaponize it. In other words, as AI proliferates throughout the economy, so does the number of threats from automated, high-frequency vectors.
The increase in threats is a massive long-term catalyst for cybersecurity leaders like Fortinet. Below are three ways Fortinet fights AI-powered security threats:
· Securing AI Data Centers: Fortinet’s technology helps to run AI applications that require extreme network speeds. Fortinet’s custom-built computer chips (ASICs) and partnership with AI leader NVIDIA ((NVDA - Free Report) ) give the company a competitive edge.
· Fighting AI-Powered Attacks: FortiAI, Fortinet’s in-house machine learning engine, helps to stop the faster, smarter attacks that are synonymous with the latest AI technology.
· Generative AI Assistant: FortiAI-Assist helps save customer time and streamline IT workloads by automating security alert investigations and troubleshooting network errors.
Fortinet: Steady, Reliable Earnings Growth
Fortinet’s success securing large enterprise contracts through the first quarter of 2026 demonstrates strong market validation and creates predictable revenue streams. The company reported that deals of $1 million or more have increased by 60%. For this reason, it is no surprise that the company has consistently grown its top-and bottom-line financials for years. Zacks Consensus Estimates suggest that revenues will in the double-digits through 2027.
Image Source: Zacks Investment Research
Meanwhile, Fortinet consistently beats Wall Street expectations. Over the past four quarters, the company has delivered an average EPS surprise of 17.46%.
Image Source: Zacks Investment Research
FTNT: Powerful Price Action & a Bullish Chart
FTNT shares have exhibited extreme power. Year-to-date, FTNT is up 91.2% while the S&P 500 Index is up 7.8%.
Image Source: Zacks Investment Research
Additionally, while the Nasdaq 100 Index ETF ((QQQ - Free Report) ) is nearly in correction territory and is well below its 10-week moving average, FTNT is finding support there. The first retreat to the moving average after a blistering move higher presents investors with an attractive reward-to-risk profile.
Image Source: TradingView
Bottom Line
As the age of artificial intelligence takes the world by storm, Fortinet’s cybersecurity solutions are in high demand. With expanding enterprise contracts and consistent earnings performance, FTNT remains a standout leader in its industry.