FTNT
Fortinet, Inc.
Technology · Software - Infrastructure · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The model awarded a perfect profitability score driven by a 30.7% operating margin, 27.3% net margin, and 17.8% return on assets, which is the primary anchor of the composite score.
- Solid revenue growth of 14.2% and consistent quarterly net income gains contributed meaningfully to the growth and momentum factors, but lagging EPS and net income growth tempered those scores.
- Zero points for dividends and an inconclusive financial health score limited the total, resulting in a composite of 52.4/100 and a Medium risk rating.
Why Not Higher
- Earnings and EPS growth significantly lagged revenue growth in FY2025 (6.2% and 7.1% versus 14.2%), and the slight sequential revenue and operating income pullback in 2026Q1 prevented higher growth and momentum scores.
- The complete absence of dividend payments and an unresolved financial health picture left meaningful scoring categories either at zero or below their potential maximum.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $5,955,800,000 to FY2025's $6,799,600,000, a gain of 14.2%, while net income rose only 6.2% (from FY2024's $1,745,200,000 to FY2025's $1,853,400,000) and diluted EPS increased 7.1% from FY2024's $2.26 to FY2025's $2.42.
The model rewarded solid top-line expansion but tempered the score because earnings and per-share growth lagged revenue growth meaningfully, suggesting margin compression or rising share-count effects at the bottom line.
In FY2025, Fortinet posted an operating margin of 30.7%, a net margin of 27.3%, and a return on assets of 17.8%, reflecting broad-based profitability across income and asset-efficiency measures.
The model awarded a perfect score because all three profitability metrics are exceptionally high for a technology company, indicating that Fortinet converts revenue to profit efficiently and deploys its asset base productively.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue rose from $1,630,000,000 in 2025Q2 to $1,905,000,000 in 2025Q4 before easing to $1,849,600,000 in 2026Q1, while net income climbed steadily from $440,100,000 in 2025Q2 to $534,500,000 in 2026Q1. Operating income peaked at $625,600,000 in 2025Q4 and moderated to $580,000,000 in 2026Q1.
The model rewarded the consistent upward trend in net income across all four quarters and the strong revenue trajectory, while the slight sequential pullback in revenue and operating income in 2026Q1 likely prevented a higher score.
Fortinet does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a zero for this factor because dividend income is absent, which reduces the total score for investors who weight income-generating characteristics.
Fortinet is assigned to the Cybersecurity macro theme.
Although Fortinet carries the Cybersecurity theme assignment, this assignment did not translate into a positive score under the model's current methodology; the theme label reflects the company's business focus but did not contribute points in this scoring run.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Fortinet delivered strong top-line growth of 14.2% in FY2025, reaching $6,799,600,000 in revenue, while maintaining exceptional profitability with a 30.7% operating margin and 27.3% net margin. However, net income growth of only 6.2% and diluted EPS growth of 7.1% lagged revenue expansion, suggesting some margin compression or share-count effects. Quarterly momentum has been broadly positive, with net income rising consistently across the last four quarters, though a slight sequential revenue pullback in 2026Q1 introduces some caution. The absence of a dividend and an inconclusive financial health picture keep the overall model score at a moderate 52.4/100 with a Medium risk rating.
Plain English
Fortinet is a cybersecurity company that is growing revenues quickly and is very profitable, but its profits per share are not growing as fast as its sales, it pays no dividend, and some recent quarterly numbers dipped slightly, which is why it scores in the middle of the pack.
Bull Case vs. Bear Case
Bull Case
- Fortinet's profitability is exceptional for a technology company, with a 30.7% operating margin, 27.3% net margin, and 17.8% return on assets in FY2025, indicating highly efficient conversion of revenue into profit.
- Revenue grew 14.2% year-over-year to $6,799,600,000 in FY2025, demonstrating solid top-line momentum in the cybersecurity sector.
- Net income rose consistently every quarter over the last four reported periods, climbing from $440,100,000 in 2025Q2 to $534,500,000 in 2026Q1, reflecting durable earnings power.
Bear Case
- Net income grew only 6.2% and diluted EPS only 7.1% in FY2025 despite 14.2% revenue growth, suggesting meaningful margin compression or rising share-count effects that could weigh on per-share value creation.
- Fortinet pays no dividend, which reduces its appeal to income-oriented investors and contributes zero to the model's income-generation scoring.
- Revenue and operating income both pulled back sequentially in 2026Q1 — revenue eased from $1,905,000,000 in 2025Q4 to $1,849,600,000, and operating income fell from $625,600,000 to $580,000,000 — introducing near-term uncertainty.
What Could Change the Picture
Bullish Triggers
- A sustained re-acceleration of net income and EPS growth back in line with or above revenue growth would signal that margin compression is temporary and that earnings leverage is returning.
- A return to sequential revenue and operating income growth in future quarters, reversing the 2026Q1 pullback, would strengthen confidence in the company's momentum trajectory.
Bearish Triggers
- If the gap between revenue growth and earnings/EPS growth widens further, it would suggest structural margin deterioration that could undermine the company's otherwise strong profitability profile.
- Continued sequential declines in revenue or operating income beyond 2026Q1 would call into question whether the strong FY2025 growth trend is sustainable.
Risk Profile
Medium RiskFortinet's interest coverage ratio of 103.7x in FY2025 suggests very limited debt-service risk relative to operating income, but the slight sequential pullback in revenue and operating income in 2026Q1 — from $1,905,000,000 and $625,600,000 in 2025Q4 to $1,849,600,000 and $580,000,000 respectively — introduces some near-term operational uncertainty that warrants monitoring.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.