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.
FTNT Rides on Strong Billings Trend: Will the Momentum Sustain?
Read MoreHide Full Article
Key Takeaways
FTNT billings rose 15% in Q2 to $1.78B, following 13.5% growth in Q1.
Unified SASE and SecOps grew 21% and 31%, now making up about 35% of total billings.
Management raised FY25 billings outlook to $7.325-$7.475B, signaling confidence in demand.
Fortinet (FTNT - Free Report) is sustaining its strong momentum, with billings once again proving to be a key growth driver. After posting 13.5% year-over-year growth in billings in the first quarter, the company maintained its momentum in the second quarter with a 15% jump to $1.78 billion. This steady growth highlights the strength of Fortinet’s demand pipeline and signals a healthy trajectory for upcoming quarters.
Unified SASE and Security Operations (SecOps) solutions remain central to this performance, expanding 21% and 31% year over year, respectively, and now making up about 35% of total billings. Large enterprise momentum further boosted results, with deals exceeding $1 million surging more than 50% in value, demonstrating Fortinet’s success in capturing multi-product, high-value engagements.
Confidence in this trend is reflected in management’s raised full-year billings outlook, with the midpoint lifted by $100 million. Growth in EMEA, coupled with accelerating adoption of FortiCloud services such as FortiIdentity and FortiConnect, is further enhancing recurring revenue visibility. Notably, services billings jumped 17% year over year, delivering the strongest growth in six quarters, further supporting the long-term revenue base.
For fiscal 2025, Fortinet guides billings of $7.325-$7.475 billion, representing 13.3% growth at the midpoint, underpinned by cloud security demand, expanding enterprise adoption and a healthy renewal cycle. With these tailwinds, the company appears poised to sustain its growth momentum in the quarters ahead.
Fortinet Battles Tough Competition in Cybersecurity
Palo Alto Networks (PANW - Free Report) is strengthening its lead over Fortinet with cutting-edge next-generation firewall and cloud-native security. PANW leverages App ID, User ID and Precision AI with the WildFire sandbox to detect zero-day threats in real time. In third-quarter fiscal 2025, PANW’s cloud ARR rose 34% to $5.09???billion, driven by rising hybrid work, deal wins and rapid adoption of its next-generation security platforms, reinforcing its dominance in subscription-driven cybersecurity growth.
Check Point Software (CHKP - Free Report) continues to solidify its legacy as a network security leader with its R80 SmartConsole, ThreatCloud intelligence and advanced threat prevention tools. In the second quarter of 2025, CHKP saw double-digit growth in product and license revenues, fueled by strong demand for Quantum Force appliances and refresh cycles. With rising cyber threats accelerating the adoption of CHKP’s subscription solutions and strategic acquisitions, the company is well-positioned to drive sustained top-line growth.
Year to date, FTNT shares have slipped 14.6%, underperforming the Zacks Security industry’s 7.2% gain and falling well behind the Zacks Computer and Technology sector’s 13.7% rise.
FTNT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Fortinet appears overvalued, trading at a Price/Book ratio of 30X, higher than the industry’s 20.15X. FTNT has a Value Score of D.
FTNT’s Valuation
Image Source: Zacks Investment Research
The consensus mark for fiscal 2025 earnings is pegged at $2.51 per share, reflecting upward revisions of 3 cents over both the 30- and 60-day periods. The estimate indicates 5.91% year-over-year growth.
Image: Bigstock
FTNT Rides on Strong Billings Trend: Will the Momentum Sustain?
Key Takeaways
Fortinet (FTNT - Free Report) is sustaining its strong momentum, with billings once again proving to be a key growth driver. After posting 13.5% year-over-year growth in billings in the first quarter, the company maintained its momentum in the second quarter with a 15% jump to $1.78 billion. This steady growth highlights the strength of Fortinet’s demand pipeline and signals a healthy trajectory for upcoming quarters.
Unified SASE and Security Operations (SecOps) solutions remain central to this performance, expanding 21% and 31% year over year, respectively, and now making up about 35% of total billings. Large enterprise momentum further boosted results, with deals exceeding $1 million surging more than 50% in value, demonstrating Fortinet’s success in capturing multi-product, high-value engagements.
Confidence in this trend is reflected in management’s raised full-year billings outlook, with the midpoint lifted by $100 million. Growth in EMEA, coupled with accelerating adoption of FortiCloud services such as FortiIdentity and FortiConnect, is further enhancing recurring revenue visibility. Notably, services billings jumped 17% year over year, delivering the strongest growth in six quarters, further supporting the long-term revenue base.
For fiscal 2025, Fortinet guides billings of $7.325-$7.475 billion, representing 13.3% growth at the midpoint, underpinned by cloud security demand, expanding enterprise adoption and a healthy renewal cycle. With these tailwinds, the company appears poised to sustain its growth momentum in the quarters ahead.
Fortinet Battles Tough Competition in Cybersecurity
Palo Alto Networks (PANW - Free Report) is strengthening its lead over Fortinet with cutting-edge next-generation firewall and cloud-native security. PANW leverages App ID, User ID and Precision AI with the WildFire sandbox to detect zero-day threats in real time. In third-quarter fiscal 2025, PANW’s cloud ARR rose 34% to $5.09???billion, driven by rising hybrid work, deal wins and rapid adoption of its next-generation security platforms, reinforcing its dominance in subscription-driven cybersecurity growth.
Check Point Software (CHKP - Free Report) continues to solidify its legacy as a network security leader with its R80 SmartConsole, ThreatCloud intelligence and advanced threat prevention tools. In the second quarter of 2025, CHKP saw double-digit growth in product and license revenues, fueled by strong demand for Quantum Force appliances and refresh cycles. With rising cyber threats accelerating the adoption of CHKP’s subscription solutions and strategic acquisitions, the company is well-positioned to drive sustained top-line growth.
FTNT’s Share Price Performance, Valuation & Estimates
Year to date, FTNT shares have slipped 14.6%, underperforming the Zacks Security industry’s 7.2% gain and falling well behind the Zacks Computer and Technology sector’s 13.7% rise.
FTNT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Fortinet appears overvalued, trading at a Price/Book ratio of 30X, higher than the industry’s 20.15X. FTNT has a Value Score of D.
FTNT’s Valuation
Image Source: Zacks Investment Research
The consensus mark for fiscal 2025 earnings is pegged at $2.51 per share, reflecting upward revisions of 3 cents over both the 30- and 60-day periods. The estimate indicates 5.91% year-over-year growth.
Image Source: Zacks Investment Research
Fortinet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.