Have you assessed how the international operations of Fortinet (FTNT Quick QuoteFTNT - Free Report) performed in the quarter ended June 2025? For this network security company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

While delving into FTNT's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter amounted to $1.63 billion, marking an increase of 13.6% from the year-ago quarter. We will next turn our attention to dissecting FTNT's international revenue to get a clearer picture of how significant its operations are outside its main base.

Trends in FTNT's Revenue from International Markets

Of the total revenue, $667.1 million came from Europe Middle East and Africa during the last fiscal quarter, accounting for 40.9%. This represented a surprise of +2.94% as analysts had expected the region to contribute $648.03 million to the total revenue. In comparison, the region contributed $628.4 million, or 40.8%, and $565.2 million, or 39.4%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Asia Pacific and Japan contributed $304.1 million in revenue, making up 18.7% of the total revenue. When compared to the consensus estimate of $311.61 million, this meant a surprise of -2.41%. Looking back, Asia Pacific and Japan contributed $281.5 million, or 18.3%, in the previous quarter, and $273.8 million, or 19.1%, in the same quarter of the previous year.

Revenue Forecasts for the International Markets

Wall Street analysts expect Fortinet to report $1.7 billion in total revenue for the current fiscal quarter, indicating an increase of 13% from the year-ago quarter. Europe Middle East and Africa and Asia Pacific and Japan are expected to contribute 39.9% (translating to $680.4 million), and 19.2% ($327.57 million) to the total revenue, respectively.

For the full year, a total revenue of $6.75 billion is expected for the company, reflecting an increase of 13.3% from the year before. The revenues from Europe Middle East and Africa and Asia Pacific and Japan are expected to make up 40.4%, and 18.8% of this total, corresponding to $2.72 billion, and $1.27 billion, respectively.

Wrapping Up

Relying on global markets for revenues presents both prospects and challenges for Fortinet. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Fortinet, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Fortinet's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has diminished by 24.9%, against an upturn of 2.7% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Fortinet among its entities, has appreciated by 6.3%. Over the past three months, the company's shares have seen a decline of 28.9% versus the S&P 500's 13.2% increase. The sector overall has witnessed an increase of 24.3% over the same period.