Fortinet, Inc. provides cybersecurity and converged networking and security solutions worldwide. Its offerings include the FortiOS operating system, FortiASIC security processing units, FortiCloud SaaS platform, FortiAI, FortiEndpoint, and OT Security. The company also provides secure networking, firewalls, SASE, and AI-driven security operations, along with FortiGuard threat intelligence and FortiCare support. Fortinet was incorporated in 2000 and is headquartered in Sunnyvale, California.
Fortinet's AI Security Demand Drives Guidance Raise, Price Target Hikes
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Fortinet Raises Full-Year 2026 Guidance on Strong Q2 Fortinet raised full-year 2026 guidance after Q2 revenue grew 26% to $2.05B and product revenue surged 52%. Billings rose 33%. This signals robust demand for its security platform, boosting investor confidence and pushing the stock up.
This is the core positive fundamental news that directly lifts FTNT's price.
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Analysts Raise Price Targets and Fair Value on AI Demand Analysts lifted FTNT price targets to $170-$215 and fair value to $163.13, citing strong Q2 results and AI-related demand. Morgan Stanley upgraded the stock. This validates the growth story and attracts buyers, pushing the price up.
Analyst upgrades and target hikes directly influence investor sentiment and buying pressure.
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Fortinet Hits 52-Week High on AI Security Platform Demand FTNT hit a 52-week high of $175.23 as demand for its unified security platform accelerated. New products like FortiSOC and FortiEndpoint with AI capabilities drove billings up 33% and product revenue up 52%, fueling the rally.
This shows the market's positive reaction to Fortinet's AI-driven product momentum.
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Fortinet Earns Recommended Rating in Cloud Firewall Test Fortinet's FortiGate NGFW earned a Recommended rating with 99.7%+ security effectiveness in a 2026 cloud firewall test. This independent validation strengthens its competitive position and supports pricing power, positively impacting the stock.
Third-party validation reinforces Fortinet's technology leadership, a key driver for future sales.
Q3 2026
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Fortinet Q3: AI Launches, Chip Deal, Record Results; Valuation and Cisco Risks
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Record Q2 results and strong growth Fortinet reported Q2 revenue of $2.05B, up 20-26%, with product revenue up 52% and billings up 33%. Margins hit record levels, showing robust demand for its cybersecurity products.
This point explains the strong financial performance that drove positive sentiment and stock gains.
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AI security platform and strategic partnerships Fortinet launched FortiSOC, an AI security platform, acquired Virtue AI, and partnered with Intel Foundry for its next-gen SP6 chip. These moves expand its technology and diversify supply.
These strategic actions highlight innovation and supply chain improvements that support future growth.
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Analyst upgrades and 52-week high Analysts raised price targets to $170-$215, Morgan Stanley upgraded the stock, and shares hit a 52-week high of $175.23. FortiGate also earned a 'Recommended' rating in cloud firewall testing.
This point captures the positive market reaction and validation from analysts and testing.
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High valuation and competitive pressures The stock trades at roughly 60x earnings and 16-18x sales, well above fair value, leaving little room for disappointment. Cisco's expanded NVIDIA alliance and strong firewall growth intensify competition.
This point highlights the key risks that could limit upside or pressure the stock.
News & notes movingFTNT
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Cybersecurity & Digital Trust▲
ICS Security Market to Reach $38.48B by 2031, Growing at 16.5% CAGR
The global industrial control system security market is projected to grow from $17.91 billion in 2026 to $38.48 billion by 2031, a 16.5% compound annual growth rate, according to a new report added to ResearchAndMarkets.com. Within that total, the solutions segment is expected to hold the largest share, while the power vertical is forecast to grow fastest and Asia Pacific to be the fastest-growing region. Growth is driven by IT-OT convergence, Industrial Internet of Things adoption, smart manufacturing, wireless industrial communications, and rising cyber threats to critical infrastructure. Cisco, Fortinet, Palo Alto Networks, Honeywell, and Nozomi Networks are among the vendors profiled, with Cisco, Fortinet, and Palo Alto Networks expanding OT-native security capabilities. The 446-page report covers offerings, solutions, services, verticals, and regions, and notes NERC CIP standards as a driver of power-sector investment.
CyberRatings and NSS Labs Release 2026 Cloud Network Firewall Test Results
CyberRatings.org and NSS Labs released the results of their 2026 Cloud Network Firewall evaluation, in which only four of nine tested products earned a Recommended rating. Each of the four Recommended products achieved Security Effectiveness of 99.7% or higher: Fortinet FortiGate Next-Generation Firewall, HPE Juniper Networking vSRX Next Generation Firewall, Palo Alto Networks VM-Series Next-Generation Firewall, and Versa Networks Next Generation Firewall. Check Point CloudGuard Network Security Next-Gen Firewall earned a Neutral rating despite posting the highest Security Effectiveness at 99.95%, because of its above-average price per Mbps. AWS Network Firewall and Microsoft Azure Firewall both received 0% for Security Effectiveness and were rated Caution, while Google Cloud Platform NGFW Enterprise at 77.45% and Cisco Secure Firewall Threat Defense Virtual at 66.10% also placed in Caution. The tests were run under identical conditions using the NSS Labs Cloud Network Firewall Test Methodology v4.1, with evasions tested through 5,004 attacks spanning 43 techniques across OSI Layers 3, 4, and 7.
Cybersecurity & Digital Trust › Network Security & SASE Competition
Cybersecurity & Digital Trust › Endpoint & Network Security Competition
Cybersecurity & Digital Trust › Cloud & Workload Security Competition
CHKP · Competition · Negative Check Point CloudGuard earned only a Neutral rating despite top security effectiveness due to above-average price per Mbps, while four rivals earned Recommended.
PANW · Technology · Positive Palo Alto Networks VM-Series earned a Recommended rating with 99.7%+ Security Effectiveness in the 2026 Cloud Network Firewall test.
Versa Networks · Technology · Positive Versa Networks Next Generation Firewall was one of only four products to earn a Recommended rating in the 2026 Cloud Network Firewall evaluation.
FTNT · Technology · Positive Fortinet FortiGate NGFW earned a Recommended rating with 99.7%+ Security Effectiveness.
HPE · Technology · Positive HPE Juniper Networking vSRX NGFW earned a Recommended rating with 99.7%+ Security Effectiveness.
AMZN · Technology · Negative AWS Network Firewall scored 0% Security Effectiveness and was rated Caution in the 2026 Cloud Network Firewall test.
Fortinet Hits 52-Week High as AI Security Platform Demand Lifts Q2 Billings 33%
Fortinet shares climbed to a fresh 52-week high of $175.23 on Sept. 21, 2026, before closing at $172.78, up roughly 3% on the session, extending a rally built on accelerating demand for its unified security platform. The company rolled out FortiSOC, a cloud-delivered security operations center embedding agentic AI across SIEM, SOAR, threat intelligence and identity-detection functions, and extended FortiEndpoint with AI visibility, governance and data-loss-prevention capabilities, while deepening its FortiAIGate integration with NVIDIA's accelerated computing stack. In the second quarter of 2026, billings rose 33% year over year to $2.37 billion, revenues grew 26% to $2.05 billion, and product revenues surged 52% to $773 million, with non-GAAP operating margin hitting a second-quarter record of 38% and free cash flow more than tripling to $966 million. Management raised full-year 2026 guidance to $8.02-$8.18 billion for revenues, $9.35-$9.55 billion for billings, and $3.41-$3.47 for non-GAAP EPS, with third-quarter guidance calling for revenues of $2.01-$2.10 billion. Fortinet shares have gained 120.7% year to date, and the Zacks Consensus Estimate for 2026 earnings is $3.42 per share, implying year-over-year growth of 23.91%.
Fortinet Fair Value Raised to US$163.13 as Analysts Lift Price Targets
Fortinet's modeled fair value has been reset from US$119.92 to US$163.13, according to Simply Wall St, as analysts lifted their price targets on strong demand. Several firms, including TD Cowen, BTIG, RBC Capital, Barclays, UBS, and Citi, raised their Fortinet price targets into a US$170 to US$215 range, citing strong Q2 results, billings and product trends, and AI-related demand for networking and security. Morgan Stanley upgraded Fortinet to Equal Weight from Underweight with a higher US$133 target, saying hardware demand tied to AI preparedness had been underestimated. On the bearish side, Wedbush and Wells Fargo flagged valuation as a key watchpoint, with Wedbush arguing the stock already reflects a best-case scenario, while HSBC and JPMorgan stayed cautious with Reduce and Underweight ratings respectively, HSBC carrying a US$102 target. The fair-value model's revenue growth assumption rose from 11.69% to 13.25%, its net profit margin from 27.17% to 29.57%, its future P/E from 36.45x to 45.46x, and its discount rate from 8.54% to 8.58%.
Palo Alto Networks SASE Bookings Jump 40% as Displacements Hit $400 Million
Palo Alto Networks said its SASE bookings grew 40% in fiscal 2026, with the company displacing legacy vendors in nearly 100 customer accounts representing more than $400 million in total contract value, roughly double the prior year's displacement volume. Management said PANW is currently the No. 2 player in SASE and aims to become the market leader over the next five to seven years, helped by integrating SASE with its firewall and SD-WAN products so existing customers can standardize on one vendor. In the fourth quarter of fiscal 2026, a global telecom leader signed a $126 million agreement to expand its next-generation firewall footprint while replacing legacy proxy providers with Prisma Access for SASE, and agentic traffic on the company's SASE platform has increased 9x over the past nine months. Rival Fortinet said its SASE Firewall business grew 34% in the second quarter of 2026 to more than $2 billion, while Unified SASE billings rose 35%, and Zscaler reported ARR up 25% year over year in the fourth quarter of fiscal 2026. Palo Alto Networks shares have jumped 104.1% year to date versus a 92.6% gain for the Zacks Security industry, and the stock trades at a forward price-to-sales ratio of 21.31X against an industry average of 19.13X.
Cybersecurity & Digital Trust › Network Security & SASE ▲Demand
Cybersecurity & Digital Trust › Endpoint & Network Security Competition
PANW · Demand · Positive Palo Alto Networks' SASE bookings jumped 40% in fiscal 2026, displacing legacy vendors in nearly 100 accounts worth over $400 million in total contract value.
FTNT · Demand · Positive Fortinet's SASE Firewall business grew 34% in Q2 2026 to over $2 billion with Unified SASE billings up 35%, showing strong demand for its SASE products.
0ZC.XETRA · Demand · Positive Zscaler reported ARR up 25% year over year in Q4 fiscal 2026, indicating continued demand for its SASE offerings.
ZS · Demand · Positive Zscaler reported ARR up 25% year over year in Q4 fiscal 2026, indicating continued demand for its SASE offerings.
Cloudbrink Launches OnGuard to Consolidate Enterprise Security Stack
Cloudbrink introduced OnGuard technology that extends a single Cloudbrink security and connectivity policy across users, devices and machines, taking aim at complex multi-product enterprise security stacks. The expanded platform gives enterprises an alternative to deploying and managing separate Cisco products for secure access, internet security, AI security and remote connectivity, consolidating ZTNA, Internet Security, Secure Web Gateway and AI security into one offering. OnGuard allows policy enforcement to begin when a device itself comes online, even before a user logs in, and to continue independently of the user session, with features including instant OnGuard availability, admin authorization, admin session termination, centralized visibility and selective policy control. CEO Prakash Mana said a single Cloudbrink platform can eliminate a significant portion of the Cisco secure-access stack, arguing that Umbrella, AnyConnect, Secure Access and AI Defense still force enterprises to manage multiple technologies, policies and operating models. The expansion builds on existing deployments, including at one U.S. insurance company where Cloudbrink replaced an environment that included Cisco AnyConnect and Fortinet, moving 300 employees on the first day and more than 600 during the first week, after which remote-connectivity support calls "pretty much disappeared," according to its VP of IT.
Cybersecurity & Digital Trust › Network Security & SASE Competition
Cybersecurity & Digital Trust › Workforce & Customer IAM (SSO/MFA) Competition
Cloudbrink · Technology · Positive Cloudbrink launched OnGuard, a new platform consolidating ZTNA, Internet Security, Secure Web Gateway and AI security into one offering.
CSCO · Competition · Negative Cloudbrink's OnGuard targets replacing Cisco's Umbrella, AnyConnect, Secure Access and AI Defense stack, positioning itself as a direct alternative.
FTNT · Competition · Negative Cloudbrink cites replacing an environment that included Fortinet alongside Cisco AnyConnect, implying competitive displacement.
Fortinet Opens US$60 Million New York Innovation Hub
Fortinet has opened a new company-owned Innovation Hub in New York City, a 40,000 square foot facility valued at US$60 million that expands its U.S. footprint. The site houses advanced cybersecurity training labs, executive briefing spaces, hands-on technology demonstration areas, and a dedicated Fortinet Cloud point of presence, along with energy-efficient infrastructure aligned with the group's ESG priorities. Fortinet said the hub concentrates its experts, training and a Fortinet Cloud PoP in a single venue, supporting its push toward more software, subscription and services revenue. The company added that the larger executive briefing and demo footprint in a financial hub gives it more surface area to pitch platform-wide deals rather than single products. Fortinet noted the expansion adds to its global data center and PoP footprint while helping its integrated Security Fabric story, though it cautioned that higher fixed costs only work if SASE, cloud and large enterprise wins scale fast enough to offset earlier margin pressure.
Cybersecurity & Digital Trust › Network Security & SASE Competition
FTNT · Capital · Positive Fortinet opened a US$60M New York Innovation Hub, a capex/facility investment supporting its software, subscription and services push.
SE Labs Launches First Public PIVOT Security Test With Five Major Vendors
SE Labs announced the first public evaluation under PIVOT, its advanced security testing programme, with Broadcom, CrowdStrike, Fortinet, Palo Alto Networks and Sophos confirmed to take part. Results will be published in early 2027 and will include a comparative analysis of the participating products, detailed findings from the attack scenarios and SE Labs' inaugural public PIVOT Rankings. The evaluation arrives as several major vendors have stepped away from MITRE Engenuity ATT&CK Evaluations, reducing the number of leading products assessed through what had been one of the industry's most prominent common sources of technical evaluation data. PIVOT follows complete attack chains to show what happened during an attack, how far an attacker progressed, what defenders could see and understand, and how those outcomes compare across competing products, rather than stopping at evidence of what a product detected. Simon Edwards, CEO and founder of SE Labs, said the underlying evidence will be made available to Gartner and Forrester so their analysts can examine it and add their own independent interpretation.
Cybersecurity & Digital Trust › Endpoint & Network Security Competition
Cybersecurity & Digital Trust › Network Security & SASE Competition
AVGO · · Neutral Named as one of five vendors participating in SE Labs' first public PIVOT security test; no product or financial development stated.
CRWD · · Neutral Named as one of five vendors participating in SE Labs' first public PIVOT security test; no product or financial development stated.
FTNT · · Neutral Named as one of five vendors participating in SE Labs' first public PIVOT security test; no product or financial development stated.
PANW · · Neutral Named as one of five vendors participating in SE Labs' first public PIVOT security test; no product or financial development stated.
Sophos Ltd · · Neutral Named as one of five vendors participating in SE Labs' first public PIVOT security test; no product or financial development stated.
Fortinet Raises Full-Year 2026 Guidance After 26% Revenue Growth
Fortinet raised its full-year 2026 guidance across every major metric after second-quarter revenue climbed 26% year over year to $2.05 billion, with product revenues surging 52% and billings expanding 33%. For the full year, the cybersecurity company now expects revenues of $8.02 billion to $8.18 billion, billings of $9.35 billion to $9.55 billion, and non-GAAP earnings per share of $3.41 to $3.47, alongside a non-GAAP operating margin target of 35% to 37%. The Zacks Consensus Estimate for 2026 earnings stands at $3.40 per share, implying 23.19% year-over-year growth. Fortinet also expanded its FortiEndpoint platform with AI visibility and control, native data security, endpoint risk scoring and FortiAI-assisted operations, and in September 2026 moved to acquire Virtue AI, an innovator in AI runtime protection and automated AI validation. Fortinet shares have rallied 98% in the year-to-date period, outperforming the Zacks Security industry's 71.1% and the broader Computer and Technology sector's 18.5%, and the stock carries a Zacks Rank #1 (Strong Buy).
Palo Alto Networks Stock Buy on $9.1B AI Security Boom
Palo Alto Networks reported $9.1 billion in Next-Generation Security ARR for fiscal Q4 2026, up 63% year over year, and issued strong guidance, reinforcing its competitive edge against CrowdStrike and Fortinet. The company added nearly $1 billion in net new NGS ARR in the quarter, while remaining performance obligations rose 34% to $21.2 billion. For fiscal Q1 2027, Palo Alto Networks expects NGS ARR of $9.54 billion to $9.56 billion, up about 63% year over year, and for fiscal 2027 it projects NGS ARR of $11.075 billion to $11.175 billion, representing 22-23% growth. The company also reported non-GAAP operating income of $1 billion, up roughly 30%, and adjusted free cash flow of $1.3 billion. With a forward price-to-earnings ratio of 88, below the Security industry average of 147.47, Palo Alto Networks currently holds a Zacks Rank #2 (Buy).
Fortinet Shares Up 12% Since Q2 Beat, Outlook Raised
Fortinet shares have risen about 12% since its last earnings report, outperforming the S&P 500, after the company posted second-quarter 2026 non-GAAP EPS of 90 cents, beating the Zacks Consensus Estimate by 20% and up 40.6% year over year, with total revenues of $2.05 billion, up 25.6% and beating estimates by 9.1%. The company raised its full-year 2026 revenue guidance to $8.02-$8.18 billion from $7.71-$7.87 billion, and non-GAAP EPS to $3.41-$3.47 from $3.10-$3.16, while also guiding third-quarter revenues to $2.01-$2.10 billion and non-GAAP EPS to 83-87 cents. Fortinet's product revenues surged 51.9% to $773 million, and total billings grew 33.4% to $2.37 billion, with strong growth in secure networking, OT security, Unified SASE, and AI-driven security operations. The company generated $1.04 billion in operating cash flow and repurchased 1.9 million shares for $146 million in the quarter, leaving about $766 million in buyback authorization. Analysts have revised estimates upward, and Fortinet holds a Zacks Rank #1 (Strong Buy).
Cisco Expands Secure AI Factory with NVIDIA to Counter Palo Alto and Fortinet
Cisco Systems is expanding its Secure AI Factory with NVIDIA, embedding security directly into the AI infrastructure stack to counter rivals Palo Alto Networks and Fortinet. The architecture combines Cisco networking, NVIDIA AI infrastructure, and Supermicro rack-scale compute, with security built from silicon through applications and AI agents. Cisco's security revenues rose 14% year over year to $2.23 billion in the fourth quarter of fiscal 2026, and firewall orders grew over 30%. The company added more than 6,400 net new customers for products like Secure Access, XDR, Hypershield, and AI Defense since launch. Fortinet's SASE Firewall business grew 34% to over $2 billion in the second quarter of 2026, while Palo Alto's Prisma AIRS surpassed 300 customers in the third quarter of fiscal 2026. Cisco shares are up 44.2% year to date, and the Zacks Consensus Estimate for fiscal 2027 earnings is $5.11 per share, up 7% over the past 30 days.
Fortinet Federal Achieves CMMC Level 2 Certification
Fortinet Federal, a wholly owned subsidiary of Fortinet, Inc., announced it has achieved Cybersecurity Maturity Model Certification (CMMC) Level 2 following an assessment by an Authorized CMMC Third-Party Assessment Organization. The certification validates the implementation of 110 security requirements aligned with NIST SP 800-171 Revision 2 for protecting Controlled Unclassified Information within its assessed environment. Fortinet Federal pursued the certification to strengthen cybersecurity across its operations and supply chain, providing customers and partners with independent validation of its security practices. Steve Hoffman, president of Fortinet Federal, emphasized the company's commitment to rigorous security practices and continuous improvement. The company's FortiGate Next-Generation Firewall maps to 83 of the 110 CMMC Level 2 security requirements, supporting nearly all 14 security domains.
Fortinet Acquires Virtue AI to Strengthen AI Runtime Security
Fortinet announced the acquisition of Virtue AI, a leader in protecting AI at runtime, to advance its Security for AI strategy and support organizations in the Agentic Enterprise era. The deal value was not disclosed and is not material to the business. Virtue AI's technology will enhance FortiAIGate to cover automated penetration testing of AI agents, agent protection and governance, continuous AI monitoring, and real-time preventive policy definition. Ken Xie, founder and CEO of Fortinet, said organizations must use AI with confidence and secure it in real-world environments. Gartner expects the AI and AI agent ecosystem security market to grow from 2.8 billion dollars in 2026 to 16.4 billion dollars by 2030.
Cybersecurity ETFs Gain as Top Holdings Post Robust Q2 Results
Cybersecurity ETFs are drawing investor attention after top holdings CrowdStrike, Palo Alto Networks, and Fortinet delivered robust second-quarter results. CrowdStrike reported a 26% year-over-year revenue increase to $1.19 billion and a 50.7% jump in adjusted earnings per share, while Palo Alto Networks posted 31% revenue growth to $3 billion and a 60% surge in Next-Generation Security ARR to $8.1 billion. Fortinet crushed estimates with quarterly revenues of $2.05 billion, up 26% year over year, and received a Moody's upgrade to A3, the highest rating of any public cybersecurity company. The Nasdaq CTA Cybersecurity Index has soared 36.5% year to date, outperforming the broader Nasdaq Index's 13% return. Four ETFs highlighted include First Trust NASDAQ Cybersecurity ETF CIBR, Amplify Cybersecurity ETF HACK, Global X Cybersecurity ETF BUG, and iShares Cybersecurity and Tech ETF IHAK, with year-to-date gains ranging from 36.4% to 43.5%.
Fortinet CFO Highlights Surging Hardware and SASE Demand
Fortinet CFO Christiane Ohlgart said the cybersecurity company's second-quarter performance was supported by broad-based global demand, accelerating hardware sales and growing adoption of secure networking and unified SASE offerings. Product revenue grew 52%, its second consecutive quarter of acceleration, driven by customers purchasing larger hardware appliances to support AI infrastructure, higher network traffic, SD-WAN and OT security needs. Unified SASE grew 35% to roughly one-quarter of sales, while FortiSASE billings more than doubled. OT billings rose 55%, service billings increased 26%, and remaining performance obligations reached $7.7 billion, up 16% year over year.
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Demand
Cybersecurity & Digital Trust › Network Security & SASE ▲Demand
Artificial Intelligence › AI Data Center & Build-out ▲Demand
Cybersecurity & Digital Trust › Cloud & Workload Security ▲Demand
FTNT · Demand · Positive Broad-based global demand, accelerating hardware sales, and growing adoption of SASE and OT offerings drove strong Q2 performance.
Fortinet Raises 2026 Guidance on Firewall and SASE Demand
Fortinet has raised its full-year 2026 guidance, citing accelerating firewall refresh cycles and surging SASE adoption. The company now expects revenue between $8.02 billion and $8.18 billion, up from the prior range of $7.71 billion to $7.87 billion, with billings projected at $9.35 billion to $9.55 billion and non-GAAP EPS between $3.41 and $3.47. The upgraded outlook follows second-quarter results that beat the high end of prior guidance, and management also lifted third-quarter revenue guidance to $2.01 billion to $2.10 billion. Fortinet shares have gained 103.9% year to date, and the company recently launched the FortiGate 1200G series with FortiSASE Outpost, while also announcing a collaboration with Intel on its next-generation security processor.
Intel Foundry signs Fortinet as first named outside customer under CEO Lip-Bu Tan
Intel Foundry has landed Fortinet as a client to manufacture its next-generation Security Processor 6, marking the first named outside customer since Lip-Bu Tan became CEO in early 2025. Under the deal, Fortinet provides the front-end design and architecture while Intel handles back-end design, advanced packaging, and manufacturing using the Intel 4 process node. The agreement moves Intel into the cybersecurity chip space and helps Fortinet diversify away from TSMC, which holds a 72% foundry market share according to TrendForce. Intel Foundry revenue grew 31% in the second quarter of 2026 to $5.8 billion, exceeding the company's 25% target, though Intel's forward price-to-earnings ratio of 66 may temper near-term shareholder action.
Artificial Intelligence › EDA & Semiconductor IP Competition
INTC · Demand · Positive Intel Foundry lands Fortinet as its first named outside customer, boosting its foundry business and moving into cybersecurity chips.
FTNT · Demand · Positive Fortinet secures Intel as a manufacturing partner for its next-gen Security Processor 6, diversifying away from TSMC.
2330.TW · Competition · Negative Intel's new customer win for Fortinet challenges TSMC's dominant foundry market share.
Zacks highlights Lam Research, Cheesecake Factory, Vertiv, and Fortinet as top GARP stocks
Zacks Investment Research featured Lam Research, The Cheesecake Factory, Vertiv, and Fortinet as promising growth-at-a-reasonable-price stocks. Lam Research guided for September 2026 quarter revenues of $8.1 billion with a non-GAAP operating margin of 39.5%, while its fiscal 2027 earnings consensus estimate rose 17.6% to $9.24 per share over the past 30 days. The Cheesecake Factory reiterated plans to open up to 26 new restaurants in fiscal 2026 and saw its 2026 earnings estimate increase 10.5% to $4.43 per share. Vertiv raised full-year 2026 guidance to approximately $14 billion in net sales and adjusted earnings of $6.65 to $6.75 per share, with its 2026 earnings estimate moving 3.6% higher to $6.64 per share. Fortinet lifted its full-year 2026 revenue growth target to 19%, implying $8.02 to $8.18 billion, and its 2026 earnings estimate advanced 8.3% to $3.40 per share.
CAKE · Capital · Positive Reiterated plans to open up to 26 new restaurants in fiscal 2026 and saw 2026 earnings estimate increase 10.5% to $4.43 per share.
FTNT · Capital · Positive Lifted full-year 2026 revenue growth target to 19% and 2026 earnings estimate advanced 8.3% to $3.40 per share.
LRCX · Capital · Positive Guided for September 2026 quarter revenues of $8.1 billion with non-GAAP operating margin of 39.5%, and fiscal 2027 earnings consensus estimate rose 17.6% to $9.24 per share.
VRT · Capital · Positive Raised full-year 2026 guidance to approximately $14 billion in net sales and adjusted earnings of $6.65 to $6.75 per share, with 2026 earnings estimate moving 3.6% higher to $6.64 per share.
Meta and Microsoft lead premarket swings after quarterly results
Several major companies saw sharp premarket moves following their latest earnings reports. Microsoft jumped 9% after quarterly revenue of $90.01 billion beat the $87.62 billion estimate, with Azure growth of 43% at constant currency exceeding expectations and Azure revenue surpassing $100 billion for the first time in the 2026 fiscal year. Meta Platforms tumbled nearly 9% after earnings per share of $6.18 missed estimates by $1.04 and its third-quarter revenue forecast of $61 billion to $64 billion came in light at the lower end. Teladoc Health plunged 18.5% on a revenue miss and lowered full-year guidance, while Norwegian Cruise Line fell 7% after cutting its full-year earnings forecast to $1.50 per share. Starbucks rose 6% on raised full-year outlook and same-store sales growth of 7.9%, and Fortinet soared 12% on strong billings and an upbeat third-quarter forecast. MarketAxess shares were halted on news of its acquisition by Intercontinental Exchange for $167 per share in a deal valued at more than $5 billion.
Fortinet Raises Annual Revenue Forecast After Strong Q2 and AI Product Push
Fortinet raised its annual revenue forecast after reporting strong second-quarter results that exceeded its prior guidance on revenue and profitability. The company highlighted progress in its shift to a subscription-led model and deeper use of generative AI across its product suite, and announced a collaboration with Intel on the Fortinet Security Processor 6 alongside new offerings including FortiGate 1200G and FortiSOC. Moody's upgraded Fortinet's ratings to the highest level for any publicly traded cybersecurity company, citing improved financial strength. The stock has returned 96.7% year to date and is up 50.6% over the past year, though it trades about 12.6% above the analyst price target of $136.11.
Cybersecurity & Digital Trust › Security Operations (SIEM/SOAR/XDR/MDR) Technology
FTNT · Capital · Positive Raised annual revenue forecast after strong Q2 results that exceeded prior guidance on revenue and profitability.
FTNT · Technology · Positive Highlighted deeper use of generative AI across product suite and announced new offerings including FortiGate 1200G and FortiSOC.
INTC · Technology · Positive Collaboration with Fortinet on the Fortinet Security Processor 6, indicating a joint technology development.
Fortinet lifts annual revenue forecast on strong cybersecurity demand
Fortinet raised its full-year revenue forecast after reporting strong second-quarter results, signaling robust enterprise spending on cybersecurity. The company now expects annual revenue between $8.02 billion and $8.18 billion, up from its prior range of $7.71 billion to $7.87 billion, and adjusted earnings per share of $3.41 to $3.47, above the earlier $3.10 to $3.16. For the third quarter, Fortinet projects revenue of $2.01 billion to $2.1 billion and adjusted profit of 83 to 87 cents per share, both exceeding analyst estimates. Second-quarter revenue came in at $2.05 billion with adjusted earnings of 90 cents per share, topping expectations.
Meta shares tumble 10% on earnings miss while Microsoft and Starbucks rise after hours
Meta Platforms shares tumbled almost 10% in extended trading after the company reported earnings per share of $6.18, missing analysts' estimates by $1.04 per share, and forecast third-quarter revenue between $61 billion and $64 billion, the lower end of which is lighter than the $63.15 billion estimated by analysts. Microsoft shares rose about 3% after quarterly revenue of $90.01 billion topped estimates of $87.62 billion, with Azure growth of 43% at constant currency beating StreetAccount estimates of 40.2% growth, and the company said Azure revenue in the 2026 fiscal year surpassed $100 billion for the first time. Starbucks shares jumped 5% after the coffee retailer raised its full-year outlook and reported same-store sales growth of 7.9%, with adjusted earnings of 85 cents per share beating estimates of 66 cents per share and revenue of $9.32 billion exceeding the $9.16 billion expected. Carvana shares tumbled 14% after the online used-car retailer's full-year earnings guidance of between $2.7 billion and $3 billion missed Wall Street expectations, which included forecasts of $3 billion to $3.2 billion from Deutsche Bank and $4.45 billion from Morgan Stanley. Other notable movers included Fortinet soaring more than 11% on strong billings, Lam Research jumping more than 6% on better-than-expected results, and Qualcomm falling more than 5% on mixed quarterly results.
Fortinet Expands FortiGate G Series with 1200G and FortiSASE Outpost
Fortinet announced the FortiGate 1200G series, the newest addition to its FortiGate G series, along with FortiSASE Outpost capability that brings cloud-delivered security services into customer-controlled environments. The FortiGate 1200G is powered by Fortinet's latest FortiASIC architecture and delivers firewall throughput of 397 Gbps, threat protection of 40 Gbps, and supports 40 million concurrent sessions, with flexible 10G, 25G, and 100G connectivity. When configured as a FortiSASE Outpost, the appliance operates as an ASIC-accelerated on-site SASE point of presence, enabling organizations to enforce security locally for data-sensitive or latency-critical traffic while maintaining consistent zero-trust policies and visibility through FortiOS. The solution is expected to be available in the third quarter of 2026.
Cybersecurity & Digital Trust › Network Security & SASE ▲Competition
Cloud & Digital Infrastructure › Edge & Content Delivery Competition
FTNT · Technology · Positive Fortinet announced new FortiGate 1200G and FortiSASE Outpost, expanding its product portfolio with advanced ASIC architecture and cloud-delivered security.
Intel Names Fortinet as First Outside Foundry Customer Under CEO Lip-Bu Tan
Intel named cybersecurity company Fortinet as the first publicly disclosed outside customer for its foundry business since CEO Lip-Bu Tan took over in March 2025. Fortinet will use Intel's foundry to manufacture its next-generation SP6 security chip on the Intel 4 process. Intel shares jumped more than 8% on Tuesday to close at $105.40, adding to a run that has lifted the stock more than 300% over the past year. The announcement comes two days before Intel reports second-quarter results after the market closes on Thursday, July 23. External foundry revenue was just $174 million in the first quarter, a sliver of Intel's $13.6 billion total revenue, and the company posted a net loss of $3.7 billion.
Cybersecurity & Digital Trust › Endpoint & Network Security Competition
INTC · Demand · Positive Intel gains its first publicly disclosed external foundry customer (Fortinet) under new CEO, boosting foundry business credibility.
FTNT · Demand · Positive Fortinet is named as Intel's first outside foundry customer, securing manufacturing for its next-gen SP6 security chip.
TD SYNNEX Named Approved Global Distributor for Fortinet
TD SYNNEX announced it had been named one of Fortinet's approved global distributors. The partnership broadens TD SYNNEX's channel role and is expected to support complex, multi-region customer deployments. Fortinet also unveiled upcoming FortiEndpoint enhancements that add AI governance, native data loss prevention, and FortiAI-assisted operations, expected to be available in the third quarter of 2026. Together, these moves highlight how Fortinet is pairing distribution scale with richer AI security capabilities.
Artificial Intelligence › AI Applications & Copilots Competition
Cybersecurity & Digital Trust › AI Security & Agent Guardrails Technology
SNX · Demand · Positive TD SYNNEX named approved global distributor for Fortinet, broadening its channel role and enabling complex multi-region deployments.
FTNT · Technology · Positive Fortinet announced upcoming FortiEndpoint enhancements with AI governance, DLP, and FortiAI-assisted operations.
Jim Cramer Names Palo Alto Networks and CrowdStrike as Top Cybersecurity Stocks for the AI Era
Jim Cramer told his followers that there will always be another DeepSeek and named Palo Alto Networks and CrowdStrike as the cybersecurity plays for a world where every enterprise is scrambling to secure frontier AI models and compromised agents. Palo Alto Networks shares are up 92.18% year-to-date, CrowdStrike is up 73.87% year-to-date, and Fortinet leads the group with a 102.47% year-to-date gain. Cramer also highlighted Zscaler, which is down 34.9% year-to-date despite nine straight EPS beats and an analyst target of $192.58, and Cloudflare, which is up 38.2% year-to-date as it pivots to an agentic AI-first company. The five stocks are positioned to benefit from enterprise budget shifts toward AI security infrastructure.
Cybersecurity & Digital Trust › AI Security & Agent Guardrails ▲Demand
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Demand
Cybersecurity & Digital Trust › Cloud & Workload Security ▲Demand
Cybersecurity & Digital Trust › Security Operations (SIEM/SOAR/XDR/MDR) ▲Demand
CRWD · Demand · Positive Cramer names CrowdStrike as a top cybersecurity play for AI era, benefiting from enterprise budget shifts toward AI security.
PANW · Demand · Positive Cramer names Palo Alto Networks as a top cybersecurity stock for AI era, benefiting from enterprise AI security spending.
FTNT · Demand · Positive Fortinet leads cybersecurity group with 102.47% YTD gain, positioned to benefit from AI security infrastructure spending.
NET · Demand · Positive Cloudflare pivots to agentic AI-first company, benefiting from AI security demand.
ZS · Demand · Neutral Zscaler is down 34.9% YTD despite EPS beats and analyst target, but still positioned to benefit from AI security shift.
0ZC.XETRA · Demand · Neutral Mentioned as a cybersecurity stock that could benefit from AI security spending, but noted as down 34.9% YTD despite EPS beats, with no specific catalyst.
CrowdStrike and other cybersecurity stocks surge after IBM warns of customer spending shift
CrowdStrike stock surged more than 9% on Tuesday alongside other cybersecurity names after IBM warned that enterprise customers had shifted spending away from traditional software in the most recent quarter. The Global X Cybersecurity ETF jumped more than 6%, while Fortinet, Okta, and Palo Alto Networks also rose during the session. IBM CEO Arvind Krishna said clients moved quarterly capex toward servers, storage, and memory to secure supply-constrained infrastructure ahead of expected price increases, and that rapidly-evolving cybersecurity concerns also drew customer focus. Investors viewed the comments as a sign that businesses were not cutting back on cybersecurity despite their spending on AI, benefiting pure-play firms like CrowdStrike, whose stock is up more than 90% year-to-date.
Barclays says IBM capex pivot boosts firewall vendors as Mythos threat eats IT budgets
Barclays analyst Saket Kalia says the enterprise capital expenditure shift that hurt IBM's software sales is a short-term positive for firewall vendors, compounded by an elevated threat environment from Mythos. IBM CEO Arvind Krishna noted clients abruptly moved quarterly capex toward servers, storage, and memory in late June to secure supply-constrained infrastructure ahead of expected price increases. Kalia's channel checks indicate enterprise buyers are aggressively purchasing firewalls to beat impending price hikes driven by rising input costs, benefiting companies like Fortinet, Palo Alto Networks, and Check Point Software. However, Kalia cautioned that this surge may represent pulled-forward demand, potentially creating difficult comparisons in future quarters. He also noted that urgent cybersecurity concerns, specifically the Mythos threat, are cannibalizing broader IT budgets, supporting security spending at the expense of other areas.
Multi-Cloud Security Market Projected to Reach $104.04 Billion by 2035
The global multi-cloud security market is projected to grow from $12.20 billion in 2025 to $104.04 billion by 2035, at a compound annual growth rate of 23.9%. Large organizations held a 71.96% market share in 2025, while the small and medium enterprise segment is expected to grow at a 24.85% CAGR from 2026 to 2035. North America accounted for 37.63% of the market in 2025, with the U.S. market alone valued at $2.83 billion and forecast to reach $8.99 billion by 2035. The Asia Pacific region is anticipated to be the fastest-growing, with a projected CAGR of 25.01%, driven by digital transformation and rising cybersecurity concerns in China, India, Japan, and South Korea. Key players include Palo Alto Networks, Microsoft, Amazon Web Services, and Fortinet, with recent developments such as Palo Alto Networks' launch of Cortex Cloud in 2025 addressing a 66% increase in cloud-targeting threats.
Fortinet Loses Russell Defensive Status Amid AI Security Spotlight
Fortinet was removed from the Russell 1000 Growth-Defensive Index and the Russell 1000 Defensive Index in late June, even as it prepares to report second-quarter 2026 results on July 29. The index exclusion contrasts with growing investor attention around Fortinet's role in AI-enabled cybersecurity and its expanding ecosystem of cloud marketplace and services partners. Analysts at Barclays, BofA, and TD Cowen have recently lifted their price targets, pointing to AI security and SASE as key demand drivers. However, concerns about valuation persist, with shares trading well above some fair value estimates and insiders selling. Fortinet's narrative projects $9.2 billion revenue and $2.5 billion earnings by 2029, requiring 10.6% yearly revenue growth and about a $0.6 billion earnings increase from $1.9 billion today.
BofA and TD Cowen Raise Fortinet Price Targets, Citing Strong Demand and AI Growth
BofA raised its price target on Fortinet to $180 from $130 while maintaining a Buy rating, following the firm's Global Technology Conference where management indicated strong demand with no signs of pull-forward activity and highlighted SASE and related markets as the next major growth drivers. TD Cowen also lifted its target to $160 from $125 with a Buy rating, noting Fortinet's solid core market presence and AI as the next growth layer, with data center investments providing a healthy backdrop for increased firewall spending. TD Cowen projects the firewall market growth rate to surge from 5% to between 8% and 12%, benefiting Fortinet which holds over 20% market share.
Liquid Networx Expands Fortinet Security Offerings via AWS and Azure Marketplace
Liquid Networx announced the availability of Fortinet licensing and professional services through the AWS and Azure Marketplace. The company, a Fortinet Expert partner and recent recipient of the first Engage Preferred Services Partner Partner of the Year in North America and Unified SASE Partner of the Year for the third consecutive year at Fortinet Accelerate 2026, will offer flexible Fortinet solutions powered by FortiFlex usage-based licensing. Customers can procure on-demand licensing for key security services including FortiGuard MDR, FortiXDR, FortiEDR, and dynamic ZTNA, along with Liquid Networx's professional services for deployment, integration, and managed support, directly through their preferred cloud marketplaces. This approach allows organizations to leverage existing cloud commitments for cybersecurity without traditional procurement delays, optimizing security investments while reducing unused cloud provider commitments.
Cybersecurity & Digital Trust › Security Operations (SIEM/SOAR/XDR/MDR) ▲Demand
Cloud & Digital Infrastructure › Mega-cap Hyperscalers Competition
Cloud & Digital Infrastructure › Horizontal SaaS Competition
Liquid Networx · Demand · Positive Liquid Networx expands its Fortinet offerings via AWS and Azure, enabling new revenue streams and customer acquisition.
FTNT · Demand · Positive Fortinet's security solutions are being offered through new cloud marketplaces, expanding customer reach and potential sales.
Fortinet Stock Could Be A Top Performer This Year Amid Cautious Guidance
Barclays raised its price target for Fortinet to $155 from $115 while maintaining an Equal Weight rating, and BofA lifted its target to $180 from $130 with a Buy rating. The company's latest earnings report showed careful channel inventory management and a cautious second-half 2026 outlook, with no expected inventory increases and second-quarter billings guidance of $2.09 billion to $2.19 billion. BofA noted steady demand without signs of purchase pull-forwards and sees SASE and related markets as the next major growth drivers.
Piper Sandler double upgraded Block to Overweight from Underweight and raised its price target to $100 from $58. Arete downgraded Trade Desk to Sell from Neutral with an $11.60 target. Other notable calls include Deutsche Bank upgrading Comcast to Buy, HSBC cutting Fortinet to Reduce, and Bank of America downgrading both Logitech and Scorpio Tankers to Underperform. New coverage was initiated on Klarna with a Market Perform at Citizens and on Visa with an Overweight at Piper Sandler.
Fortinet Expands FortiGate G Series and Launches Cloud SOC Platform
Fortinet has widened its FortiGate G Series with the 3500G and 400G models and launched FortiSOC, a cloud-delivered security operations platform. The FortiGate 3500G targets high-density data centers with 595 Gbps of firewall throughput, while the 400G is aimed at enterprise edges with 164 Gbps. FortiSOC consolidates six SOC functions into a single SaaS experience with embedded agentic AI. These moves follow a first quarter where revenues grew 20% year over year to $1.85 billion, product revenues increased 41% to $645 million, and billings rose 31% to $2.09 billion. Management raised full-year 2026 revenue guidance to between $7.71 billion and $7.87 billion, representing roughly 15% growth.
CrowdStrike Holdings has underperformed the broader technology sector over the past 52 weeks, with its shares rising 38.5% compared to a 51.7% surge in the State Street Technology Select Sector SPDR ETF. The cybersecurity company reported better-than-expected first-quarter fiscal 2027 revenue of $1.39 billion and adjusted earnings per share of $1.10 on June 3, yet its stock fell 3.8% the following day as operating expenses climbed 15% year-over-year to $1.07 billion, driven by increased investments in AI and product development. While CrowdStrike raised its full-year revenue guidance to between $5.91 billion and $5.96 billion, concerns over margin pressure from accelerating spending weighed on investor sentiment. In contrast, rival Fortinet has jumped 86.4% year-to-date and 43.5% over the past 52 weeks. Analysts remain moderately optimistic, with a consensus rating of Moderate Buy and a mean price target of $729.11, representing a 7.1% premium to current levels.
Palo Alto Networks faces margin pressure as Fortinet gains ground in SASE
Palo Alto Networks is facing rising integration costs from recent large acquisitions, which are putting pressure on margins and setting the company apart from core cybersecurity peers. Rivals such as Fortinet are gaining traction with stronger adoption of unified SASE security platforms, sharpening competitive pressures. The stock is at $286.4, up 59.7% year to date and 354.0% over five years, but investors are now weighing those strong historical returns against fresh margin pressures. Upcoming updates on cost synergies, product integration progress, and customer adoption of unified platforms are likely to shape how the market views the balance between growth ambitions and profitability risk.
Fortinet Has an Edge Over Palo Alto Networks Right Now
Fortinet currently offers a more compelling investment case than Palo Alto Networks, according to a Zacks Investment Research analysis. While both cybersecurity leaders benefit from strong industry trends, Palo Alto Networks faces near-term margin pressure from rising acquisition-related costs, which jumped to $113 million in the third quarter of fiscal 2026 from $5 million in the prior quarter, contributing to a 320-basis-point sequential contraction in non-GAAP operating income margin. In contrast, Fortinet is seeing steady execution with its Unified SASE billings up 31% year over year in the first quarter of 2026, now representing about 25% of total billings, and 18% of large enterprise customers adopting FortiSASE. Fortinet also trades at a forward sales multiple of 13.02 times, significantly lower than Palo Alto Networks' 17.33 times, providing a more attractive valuation. Both stocks carry a Zacks Rank #3 (Hold).
Cloudflare's lack of profitability and high valuation raise overvaluation concerns
Cloudflare's stock may be overvalued given its continued lack of profitability and a price-to-sales ratio exceeding 33 times. The company reported a net operating loss of $62 million in the first quarter, representing 9.7% of revenue, while full-year revenue guidance of $2.81 billion implies a growth deceleration to 29.6% from 34% in Q1. Competitors CrowdStrike and Fortinet are both profitable and have seen stronger stock rallies this year. Cloudflare retains over 4,400 large customers and serves more than 40% of Fortune 500 companies, but the high valuation leaves little room for error if revenue growth slows further.
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