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3 Reasons to Buy Fortinet Stock After a 119.9% Rise in 6 Months
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Key Takeaways
Fortinet's AI and SASE demand drove product revenues up 52% and billings up 33% in Q2.
FTNT raised 2026 revenue guidance to $8.02-$8.18 billion, implying 19% growth at the midpoint.
Fortinet's AI security expansion and tripled free cash flow add momentum and financial flexibility.
Fortinet (FTNT - Free Report) shares have rallied 119.9% in the past six-month period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 135% and 32.1%, respectively. This outperformance reflects confidence in Fortinet's execution, a run that may tempt investors to book profits.
However, the rally appears to be rooted in strengthening fundamentals rather than speculative enthusiasm. Accelerating product demand tied to AI workloads, a raised 2026 outlook, an improving services trajectory, and a steady cadence of AI security innovation suggest the cybersecurity leader still has room to run in the near term. Here are three reasons to buy FTNT stock now.
FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research
SASE Firewall and AI Infrastructure Demand Fuel Product Momentum
Fortinet's strategy of integrating networking and security on a single operating system, FortiOS, powered by its proprietary FortiASIC chips, resonates strongly with enterprises modernizing infrastructure for AI. In the second quarter of 2026, revenues climbed 26% year over year to $2.05 billion, as product revenues soared 52% to $773 million on robust FortiGate unit growth and higher average selling prices. Billings jumped 33% to $2.37 billion. The newly framed SASE Firewall business, which combines Secure Networking and Unified SASE, grew 34% to more than $2 billion. FortiSASE billings more than doubled, while operational technology billings rose over 55%. Fortinet also secured an eight-figure deal from a neocloud provider to protect AI data centers, underscoring its price-to-performance advantage. Customer investments to secure AI workloads and mitigate AI-related risks drove both new business and upgrade activity across the installed base.
Raised 2026 Guidance Signals Durable Growth
Management raised its 2026 outlook across all top-line metrics. Fortinet now expects revenues of $8.02-$8.18 billion, implying 19% growth at the midpoint, up from the prior guidance of $7.71-$7.87 billion. Billings are projected between $9.35 billion and $9.55 billion, indicating 25% growth, while service revenues are expected to be in the range of $5.18-$5.22 billion. Non-GAAP operating margin guidance was lifted to 35-37%, and non-GAAP earnings are expected to be in the range of $3.41-$3.47 per share. Non-GAAP gross margin is expected to be in the 79-81% band for 2026. Importantly, management believes the first quarter of 2026 marked the trough for service revenue growth, with service billings already accelerating 26% in the second quarter.
For the third quarter, Fortinet projects revenues of $2.01-$2.10 billion and billings of $2.25-$2.35 billion. Infrastructure investments are expected to be in the range of $350-$550 million for 2026 and $100-$150 million for the third quarter. On Oct. 2, Fortinet announced that it will report third-quarter 2026 results on Oct. 28, a near-term catalyst that could validate this momentum.
The Zacks Consensus Estimate for Fortinet's earnings is pegged at $3.42 per share for 2026, which implies year-over-year growth of 23.91%.
Expanding AI Security Portfolio and Financial Flexibility
Fortinet keeps sharpening its AI security edge. On Aug. 17, 2026, the company acquired Virtue AI, adding agentic AI red-teaming, continuous AI validation, agent governance and real-time guardrails that complement its FortiAIGate solution for protecting large language models. On Sept. 10, Fortinet was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall, positioned highest for Ability to Execute for the second straight year. On Sept. 15, it opened a company-owned Innovation Hub in New York City, an investment of more than $60 million that includes a Fortinet Cloud point-of-presence data center. Financially, free cash flow more than tripled year over year to $966 million in the second quarter, while Moody's upgraded its debt rating to A3.
FTNT's Valuation & Competitive Landscape
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 48.59, higher than the sector's average of 21.33. The company carries a Value Score of F, though the premium is justified by Fortinet's superior margin profile, raised guidance trajectory and expanding AI- and SASE-driven total addressable market.
FTNT’s Valuation
Image Source: Zacks Investment Research
Competition in AI-driven security remains intense and fragmented. Palo Alto Networks (PANW - Free Report) continues to push platformization across network security, SASE and security operations, and Palo Alto Networks' Cortex suite targets the same AI SOC opportunity as FortiSOC. CrowdStrike (CRWD - Free Report) leverages its cloud-native Falcon platform to expand from endpoint protection into next-gen SIEM, while CrowdStrike's agentic AI capabilities intensify competition for SecOps budgets. Cisco (CSCO - Free Report) bundles security with its massive networking installed base, and Cisco's Hypershield and Splunk assets strengthen its AI security pitch. However, Fortinet's in-house FortiASIC technology, single FortiOS platform and on-premises Sovereign SASE offering provide a cost and performance edge that Palo Alto Networks, CrowdStrike and Cisco may find quite difficult to replicate.
Conclusion
Fortinet's 119.9% six-month rally is backed by solid fundamentals, including accelerating AI-driven product demand, raised 2026 guidance, an inflecting services business and an expanding AI security portfolio. Robust free cash flow and an investment-grade balance sheet add financial flexibility. Investors should consider buying FTNT stock now to capitalize on its near-term growth momentum.
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3 Reasons to Buy Fortinet Stock After a 119.9% Rise in 6 Months
Key Takeaways
Fortinet (FTNT - Free Report) shares have rallied 119.9% in the past six-month period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 135% and 32.1%, respectively. This outperformance reflects confidence in Fortinet's execution, a run that may tempt investors to book profits.
However, the rally appears to be rooted in strengthening fundamentals rather than speculative enthusiasm. Accelerating product demand tied to AI workloads, a raised 2026 outlook, an improving services trajectory, and a steady cadence of AI security innovation suggest the cybersecurity leader still has room to run in the near term. Here are three reasons to buy FTNT stock now.
FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research
SASE Firewall and AI Infrastructure Demand Fuel Product Momentum
Fortinet's strategy of integrating networking and security on a single operating system, FortiOS, powered by its proprietary FortiASIC chips, resonates strongly with enterprises modernizing infrastructure for AI. In the second quarter of 2026, revenues climbed 26% year over year to $2.05 billion, as product revenues soared 52% to $773 million on robust FortiGate unit growth and higher average selling prices. Billings jumped 33% to $2.37 billion. The newly framed SASE Firewall business, which combines Secure Networking and Unified SASE, grew 34% to more than $2 billion. FortiSASE billings more than doubled, while operational technology billings rose over 55%. Fortinet also secured an eight-figure deal from a neocloud provider to protect AI data centers, underscoring its price-to-performance advantage. Customer investments to secure AI workloads and mitigate AI-related risks drove both new business and upgrade activity across the installed base.
Raised 2026 Guidance Signals Durable Growth
Management raised its 2026 outlook across all top-line metrics. Fortinet now expects revenues of $8.02-$8.18 billion, implying 19% growth at the midpoint, up from the prior guidance of $7.71-$7.87 billion. Billings are projected between $9.35 billion and $9.55 billion, indicating 25% growth, while service revenues are expected to be in the range of $5.18-$5.22 billion. Non-GAAP operating margin guidance was lifted to 35-37%, and non-GAAP earnings are expected to be in the range of $3.41-$3.47 per share. Non-GAAP gross margin is expected to be in the 79-81% band for 2026. Importantly, management believes the first quarter of 2026 marked the trough for service revenue growth, with service billings already accelerating 26% in the second quarter.
For the third quarter, Fortinet projects revenues of $2.01-$2.10 billion and billings of $2.25-$2.35 billion. Infrastructure investments are expected to be in the range of $350-$550 million for 2026 and $100-$150 million for the third quarter. On Oct. 2, Fortinet announced that it will report third-quarter 2026 results on Oct. 28, a near-term catalyst that could validate this momentum.
The Zacks Consensus Estimate for Fortinet's earnings is pegged at $3.42 per share for 2026, which implies year-over-year growth of 23.91%.
Fortinet, Inc. Price and Consensus
Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote
Expanding AI Security Portfolio and Financial Flexibility
Fortinet keeps sharpening its AI security edge. On Aug. 17, 2026, the company acquired Virtue AI, adding agentic AI red-teaming, continuous AI validation, agent governance and real-time guardrails that complement its FortiAIGate solution for protecting large language models. On Sept. 10, Fortinet was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall, positioned highest for Ability to Execute for the second straight year. On Sept. 15, it opened a company-owned Innovation Hub in New York City, an investment of more than $60 million that includes a Fortinet Cloud point-of-presence data center. Financially, free cash flow more than tripled year over year to $966 million in the second quarter, while Moody's upgraded its debt rating to A3.
FTNT's Valuation & Competitive Landscape
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 48.59, higher than the sector's average of 21.33. The company carries a Value Score of F, though the premium is justified by Fortinet's superior margin profile, raised guidance trajectory and expanding AI- and SASE-driven total addressable market.
FTNT’s Valuation
Image Source: Zacks Investment Research
Competition in AI-driven security remains intense and fragmented. Palo Alto Networks (PANW - Free Report) continues to push platformization across network security, SASE and security operations, and Palo Alto Networks' Cortex suite targets the same AI SOC opportunity as FortiSOC. CrowdStrike (CRWD - Free Report) leverages its cloud-native Falcon platform to expand from endpoint protection into next-gen SIEM, while CrowdStrike's agentic AI capabilities intensify competition for SecOps budgets. Cisco (CSCO - Free Report) bundles security with its massive networking installed base, and Cisco's Hypershield and Splunk assets strengthen its AI security pitch. However, Fortinet's in-house FortiASIC technology, single FortiOS platform and on-premises Sovereign SASE offering provide a cost and performance edge that Palo Alto Networks, CrowdStrike and Cisco may find quite difficult to replicate.
Conclusion
Fortinet's 119.9% six-month rally is backed by solid fundamentals, including accelerating AI-driven product demand, raised 2026 guidance, an inflecting services business and an expanding AI security portfolio. Robust free cash flow and an investment-grade balance sheet add financial flexibility. Investors should consider buying FTNT stock now to capitalize on its near-term growth momentum.
Fortinet currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.