# Fortinet, Inc. (FTNT)

> Fortinet sells network security equipment, software, subscriptions, and technical support to businesses, service providers, and governments.

- Exchange: NASDAQ · Sector: Technology · Industry: Software Infrastructure
- Headquarters: Sunnyvale, California, United States
- Founded: 2000 (incorporated in Delaware in November 2000)
- Employees: 15,472 (June 30, 2026)
- SEC CIK: 0001262039 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001262039))
- Full page: https://inspectstocks.com/stocks/ftnt
- Data as of: price 2026-09-25; newest filing used 2026-07-30; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $7.5B | $5B |
| Revenue growing recently | passed | $7.5B | $6.8B |
| Free cash flow positive | passed | $3.1B |  |
| Free cash flow growing overall | passed | $3.1B | $1.4B |
| Free cash flow growing recently | passed | $3.1B | $2.2B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 28.2% |  |
| Healthy profit margin | passed | 28.2% |  |
| Strong operating margin | passed | 32.4% |  |
| Good return on equity | passed | 171.4% |  |
| Debt under control | passed | 0.86 |  |
| Turns sales into cash | passed | 41.4% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $7.5B |
| Net income, trailing twelve months | $2.1B |
| Free cash flow, trailing twelve months | $3.1B |
| Net margin | 28.2% |
| Operating margin | 32.4% |
| Return on equity | 171.4% |
| Debt to equity | 0.86 |
| Diluted EPS, trailing twelve months | $2.83 |
| Share price | $173.46 |
| Market value | $127.3B |
| Price / earnings | 61.3x |
| Price / sales | 16.9x |

## What the business does

Fortinet makes firewalls that inspect network traffic and help block cyberattacks, along with switches and wireless equipment that connect and protect office networks. It sells software and cloud services that secure access for remote users and help security teams detect and respond to threats. Customers can buy equipment and services together or separately, often through distributors and resellers.

### How it makes money

- **Security subscriptions** (37.5% (quarter ended March 31, 2026)) — Customers pay for continuing security protection, including FortiGuard services. Subscription revenue is generally recognized over the service period.
- **Products** (34.9% (quarter ended March 31, 2026)) — Fortinet sells physical security equipment and software licenses, usually through distributors and resellers. It generally invoices customers when it makes the sale.
- **Technical support and other services** (27.6% (quarter ended March 31, 2026)) — Customers pay for FortiCare technical support and related services. Revenue from support contracts is generally recognized over the service period.

### Products

- **FortiGate** — Network firewalls, sold as physical equipment or in software and cloud forms, that inspect traffic and apply security rules. They can also run networking functions such as connecting office branches.
- **FortiSwitch, FortiAP, and FortiExtender** — Equipment for connecting devices and users: wired network switches, wireless access points, and gateways that connect locations using mobile networks.
- **FortiSASE** — A service for securing users’ access to workplace applications, whether they are in an office, working remotely, or connecting through the cloud. Fortinet also provides versions that organizations can run in infrastructure they control.
- **Fortinet security operations software** — Tools including FortiAnalyzer, FortiSIEM, FortiSOAR, and FortiSOC that help security teams collect and review security information, investigate threats, and automate responses.
- **FortiGuard and FortiCare** — Paid security subscriptions that provide threat protection and updates, and technical support services that help customers maintain Fortinet equipment and services.
- **FortiEndpoint** — Software for protecting computers and other devices, detecting threats on them, and helping control their secure connection to company resources.

### Customers

- Small, medium, and large businesses in sectors including finance, healthcare, manufacturing, retail, technology, education, and telecommunications. They buy equipment, software licenses, cloud services, subscriptions, and support, sometimes in a bundle.
- Government organizations, which buy security equipment, software, and services directly or through channel partners and may have specific purchasing and supply-chain requirements.
- Communication and security service providers, which buy Fortinet products and services for their networks or use them to provide hosted security services to their own customers.
- Managed security service providers, which buy or use Fortinet products to provide cybersecurity services to other organizations.
- Distributors such as Arrow Electronics, Ingram Micro, and TD Synnex, which buy from Fortinet and sell to resellers and service providers; resellers then sell to end-customers.

### Competitors

- Palo Alto Networks (PANW) — Network firewalls, cloud security, secure access, and security operations software and services.
- Cisco Systems (CSCO) — Network security equipment and software, including firewalls and products for connecting and protecting company networks.
- Check Point Software Technologies (CHKP) — Network firewalls and other security products and services for organizations.
- CrowdStrike (CRWD) — Endpoint protection and security operations products and services.
- Zscaler (ZS) — Cloud-delivered services that secure users’ access to websites and workplace applications.

### What it depends on

- Fortinet outsources manufacturing of its security appliances; about 87% of its hardware was manufactured in Taiwan (2025, high).
- Some important components, including memory, processors, and network chips, come from limited or sole sources. Fortinet says it has no long-term contracts guaranteeing manufacturing capacity or component prices.
- Fortinet sells mainly through distributors, resellers, service providers, and managed security service providers, making sales partly dependent on these channel partners.
- Cloud services depend on Fortinet’s own data centers and points of presence, colocation providers, and public cloud providers including Amazon Web Services, Microsoft Azure, and Google Cloud.

### What could go wrong

- A shortage or delayed supply of memory chips or other limited-source components, manufacturing delays, or disruption affecting Taiwan-based production could delay appliance shipments or raise costs.
- A product flaw, vulnerability, or failure to detect or block a threat could disrupt customers’ operations and damage Fortinet’s reputation and sales.
- Rapid technology changes and competition from companies with broader product ranges could reduce demand for Fortinet products, pressure prices, or make it harder to win and retain customers.

## More on this company

- [Overview](https://inspectstocks.com/stocks/ftnt)
- [Financial statements](https://inspectstocks.com/stocks/ftnt/financials)
- [Competitors](https://inspectstocks.com/stocks/ftnt/peers)
- [Earnings](https://inspectstocks.com/stocks/ftnt/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.