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Fortinet vs. CrowdStrike: Which Cybersecurity Stock is a Better Buy?
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Key Takeaways
CrowdStrike is positioned as a better buy than Fortinet in the cybersecurity sector.
RWD posted record Q2 ARR of $221M and gained 42.9% YTD vs. FTNT's 12.1% decline.
CrowdStrike's AI partnerships with AWS and NVIDIA strengthen its cloud-native security leadership.
The cybersecurity sector continues to attract investor attention as digital threats escalate and enterprises prioritize their security infrastructure. Two prominent players dominating this space are Fortinet (FTNT - Free Report) , the global leader in network security with the most deployed firewalls worldwide, and CrowdStrike (CRWD - Free Report) , which has established itself as a leader in endpoint protection with its AI-native Falcon platform.
Both companies are investing heavily in AI capabilities, with Fortinet expanding its FortiAI across its Security Fabric platform and CrowdStrike partnering with industry giants like AWS, Intel, Meta, NVIDIA, and Salesforce to secure the future of enterprise AI. As enterprises increasingly consolidate their security vendors and embrace AI-driven operations, the question becomes which company is better positioned to capitalize on these secular trends.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for FTNT Stock
Fortinet delivered strong financial performance in the first half of 2025, with second-quarter billings growing 14% year over year and non-GAAP operating margin expanding to a record 34% in the first quarter, increasing 570 basis points year over year. The company continues to demonstrate operational efficiency while investing in growth initiatives. FTNT raised the full-year billings outlook, attributing this performance to continued innovation and customer-first strategy. The company's comprehensive product portfolio remains a significant competitive advantage.
On the AI front, Fortinet announced significant FortiAI innovations in April 2025, embedding AI-driven capabilities across its Security Fabric platform to enhance protection against emerging threats and automate security operations. The company emphasized its AI advantage stems from over a decade of AI innovation and more patents than any other cybersecurity vendor, now incorporating agentic AI capabilities to reduce workload on security teams. Fortinet's integrated approach through its FortiOS operating system allows seamless product development and integration across its portfolio of more than 50 enterprise-grade products.
However, Fortinet faces challenges in certain high-growth segments. While the company maintains strong positions in traditional network security, it's navigating a market shift toward cloud-native architectures and unified security platforms. The company's strategy to expand in Unified SASE and Security Operations markets represents an acknowledgment that growth must come from newer segments. Additionally, with a forward sales multiple of 9.71X, some investors may question whether the valuation fully reflects the company's growth prospects in an increasingly competitive landscape.
CrowdStrike delivered an exceptional second-quarter fiscal 2026, with reacceleration arriving a quarter ahead of expectations, reporting record second-quarter net new ARR of $221 million and total revenues of $1.17 billion, representing 21% year-over-year growth. The company surpassed 1,000 Falcon Flex customers, with more than 100 re-flexes highlighting CrowdStrike's leadership in cybersecurity consolidation. This flexible consumption model is resonating strongly with enterprises seeking to optimize their security spending while expanding coverage.
The company's platform approach continues to gain momentum. CrowdStrike's module adoption rates reached 48%, 33%, and 23% for six or more, seven or more, and eight or more modules, respectively, as of July 31, 2025, demonstrating that customers are consolidating more security functions onto the Falcon platform. Cloud, Next-Gen Identity, and Next-Gen SIEM platform solutions achieved over $1.56 billion in ending ARR, growing more than 40% year over year, while Falcon Next-Gen SIEM experienced over 95% year-over-year growth with ending ARR exceeding $430 million.
CrowdStrike's AI leadership positions it advantageously for the future. The company announced partnerships with AWS, Intel, Meta, NVIDIA, and Salesforce in September 2025 to secure the future of enterprise AI, embedding protection with the world's AI leaders. Charlotte AI, CrowdStrike's SOC agent, had a record quarter, growing more than 85% over the first quarter, demonstrating strong adoption of its agentic AI security workflow capabilities.
Strategic moves bolster future growth prospects. CrowdStrike announced its intent to acquire Onum Technology Inc., a pioneer in real-time telemetry pipeline management, which enhances its data pipeline capabilities for next-gen SIEM. The company provided strong guidance, expecting the ending ARR growth of more than 22% for fiscal 2026, with at least 40% year-over-year net new ARR growth anticipated for the back half of the fiscal year. Management reiterated confidence in achieving its $10 billion ending ARR goal.
Both companies command premium valuations reflecting their leadership positions and growth prospects, though CrowdStrike trades at a significantly higher multiple. Fortinet is trading at a forward sales multiple of 8.68X, while CrowdStrike commands a forward sales multiple of 22.33X. However, this valuation gap appears justified when examining the underlying business dynamics and growth trajectories.
FTNT vs. CRWD P/S Ratio
Image Source: Zacks Investment Research
CrowdStrike's second-quarter fiscal 2026 demonstrated accelerating momentum with record net new ARR and strong guidance calling for at least 40% year-over-year net new ARR growth in the back half of the fiscal year. The company's ability to expand within its existing customer base through its platform approach and Falcon Flex model provides a more predictable and higher-growth revenue stream. The company maintains more than 97% gross retention, demonstrating strong customer commitment to the platform.
Fortinet's 12.1% stock decline over the year-to-date period underperformed CrowdStrike's 42.9% gain. Looking forward, CrowdStrike's combination of accelerating ARR growth, expanding platform adoption, strategic AI partnerships, and leadership in cloud-native security suggests stronger upside potential despite its premium valuation.
FTNT Underperforms CRWD YTD
Image Source: Zacks Investment Research
Conclusion
CrowdStrike's AI-native platform architecture, strategic partnerships with technology leaders, including AWS and NVIDIA, and accelerating ARR growth demonstrate superior positioning for the AI-driven security landscape. Investors should buy CrowdStrike stock for its superior growth trajectory and market leadership, while Fortinet shareholders may consider holding their positions or waiting for a more attractive entry point as the company navigates its transition to higher-growth segments. CrowdStrike sports a Zacks Rank #1 (Strong Buy), and Fortinet carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Fortinet vs. CrowdStrike: Which Cybersecurity Stock is a Better Buy?
Key Takeaways
The cybersecurity sector continues to attract investor attention as digital threats escalate and enterprises prioritize their security infrastructure. Two prominent players dominating this space are Fortinet (FTNT - Free Report) , the global leader in network security with the most deployed firewalls worldwide, and CrowdStrike (CRWD - Free Report) , which has established itself as a leader in endpoint protection with its AI-native Falcon platform.
Both companies are investing heavily in AI capabilities, with Fortinet expanding its FortiAI across its Security Fabric platform and CrowdStrike partnering with industry giants like AWS, Intel, Meta, NVIDIA, and Salesforce to secure the future of enterprise AI. As enterprises increasingly consolidate their security vendors and embrace AI-driven operations, the question becomes which company is better positioned to capitalize on these secular trends.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for FTNT Stock
Fortinet delivered strong financial performance in the first half of 2025, with second-quarter billings growing 14% year over year and non-GAAP operating margin expanding to a record 34% in the first quarter, increasing 570 basis points year over year. The company continues to demonstrate operational efficiency while investing in growth initiatives. FTNT raised the full-year billings outlook, attributing this performance to continued innovation and customer-first strategy. The company's comprehensive product portfolio remains a significant competitive advantage.
On the AI front, Fortinet announced significant FortiAI innovations in April 2025, embedding AI-driven capabilities across its Security Fabric platform to enhance protection against emerging threats and automate security operations. The company emphasized its AI advantage stems from over a decade of AI innovation and more patents than any other cybersecurity vendor, now incorporating agentic AI capabilities to reduce workload on security teams. Fortinet's integrated approach through its FortiOS operating system allows seamless product development and integration across its portfolio of more than 50 enterprise-grade products.
However, Fortinet faces challenges in certain high-growth segments. While the company maintains strong positions in traditional network security, it's navigating a market shift toward cloud-native architectures and unified security platforms. The company's strategy to expand in Unified SASE and Security Operations markets represents an acknowledgment that growth must come from newer segments. Additionally, with a forward sales multiple of 9.71X, some investors may question whether the valuation fully reflects the company's growth prospects in an increasingly competitive landscape.
Fortinet, Inc. Price and Consensus
Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote
The Case for CRWD Stock
CrowdStrike delivered an exceptional second-quarter fiscal 2026, with reacceleration arriving a quarter ahead of expectations, reporting record second-quarter net new ARR of $221 million and total revenues of $1.17 billion, representing 21% year-over-year growth. The company surpassed 1,000 Falcon Flex customers, with more than 100 re-flexes highlighting CrowdStrike's leadership in cybersecurity consolidation. This flexible consumption model is resonating strongly with enterprises seeking to optimize their security spending while expanding coverage.
The company's platform approach continues to gain momentum. CrowdStrike's module adoption rates reached 48%, 33%, and 23% for six or more, seven or more, and eight or more modules, respectively, as of July 31, 2025, demonstrating that customers are consolidating more security functions onto the Falcon platform. Cloud, Next-Gen Identity, and Next-Gen SIEM platform solutions achieved over $1.56 billion in ending ARR, growing more than 40% year over year, while Falcon Next-Gen SIEM experienced over 95% year-over-year growth with ending ARR exceeding $430 million.
CrowdStrike's AI leadership positions it advantageously for the future. The company announced partnerships with AWS, Intel, Meta, NVIDIA, and Salesforce in September 2025 to secure the future of enterprise AI, embedding protection with the world's AI leaders. Charlotte AI, CrowdStrike's SOC agent, had a record quarter, growing more than 85% over the first quarter, demonstrating strong adoption of its agentic AI security workflow capabilities.
Strategic moves bolster future growth prospects. CrowdStrike announced its intent to acquire Onum Technology Inc., a pioneer in real-time telemetry pipeline management, which enhances its data pipeline capabilities for next-gen SIEM. The company provided strong guidance, expecting the ending ARR growth of more than 22% for fiscal 2026, with at least 40% year-over-year net new ARR growth anticipated for the back half of the fiscal year. Management reiterated confidence in achieving its $10 billion ending ARR goal.
CrowdStrike Price and Consensus
CrowdStrike price-consensus-chart | CrowdStrike Quote
Valuation and Price Performance Comparison
Both companies command premium valuations reflecting their leadership positions and growth prospects, though CrowdStrike trades at a significantly higher multiple. Fortinet is trading at a forward sales multiple of 8.68X, while CrowdStrike commands a forward sales multiple of 22.33X. However, this valuation gap appears justified when examining the underlying business dynamics and growth trajectories.
FTNT vs. CRWD P/S Ratio
Image Source: Zacks Investment Research
CrowdStrike's second-quarter fiscal 2026 demonstrated accelerating momentum with record net new ARR and strong guidance calling for at least 40% year-over-year net new ARR growth in the back half of the fiscal year. The company's ability to expand within its existing customer base through its platform approach and Falcon Flex model provides a more predictable and higher-growth revenue stream. The company maintains more than 97% gross retention, demonstrating strong customer commitment to the platform.
Fortinet's 12.1% stock decline over the year-to-date period underperformed CrowdStrike's 42.9% gain. Looking forward, CrowdStrike's combination of accelerating ARR growth, expanding platform adoption, strategic AI partnerships, and leadership in cloud-native security suggests stronger upside potential despite its premium valuation.
FTNT Underperforms CRWD YTD
Image Source: Zacks Investment Research
Conclusion
CrowdStrike's AI-native platform architecture, strategic partnerships with technology leaders, including AWS and NVIDIA, and accelerating ARR growth demonstrate superior positioning for the AI-driven security landscape. Investors should buy CrowdStrike stock for its superior growth trajectory and market leadership, while Fortinet shareholders may consider holding their positions or waiting for a more attractive entry point as the company navigates its transition to higher-growth segments. CrowdStrike sports a Zacks Rank #1 (Strong Buy), and Fortinet carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.