Zacks Research Has Pessimistic View of Fortinet Q3 Earnings

Fortinet, Inc. (NASDAQ:FTNT) – Analysts at Zacks Research dropped their Q3 2025 EPS estimates for Fortinet in a research report issued to clients and investors on Tuesday, May 27th. Zacks Research analyst R. Department now forecasts that the software maker will post earnings per share of $0.52 for the quarter, down from their prior estimate of $0.54. The consensus estimate for Fortinet’s current full-year earnings is $2.09 per share. Zacks Research also issued estimates for Fortinet’s Q4 2025 earnings at $0.60 EPS and Q1 2027 earnings at $0.57 EPS.

Fortinet (NASDAQ:FTNT) last announced its quarterly earnings data on Wednesday, May 7th. The software maker reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.05. Fortinet had a net margin of 29.30% and a return on equity of 256.53%. The firm had revenue of $1.54 billion for the quarter, compared to analysts’ expectations of $1.54 billion. During the same period last year, the firm earned $0.43 earnings per share. The business’s revenue for the quarter was up 13.8% on a year-over-year basis.

Other equities analysts have also recently issued reports about the stock. Stephens began coverage on shares of Fortinet in a research report on Tuesday, April 1st. They set an “equal weight” rating and a $108.00 price target on the stock. DZ Bank raised shares of Fortinet from a “strong sell” rating to a “hold” rating in a research report on Thursday, May 8th. Morgan Stanley reduced their price target on shares of Fortinet from $123.00 to $105.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 16th. Needham & Company LLC reissued a “hold” rating on shares of Fortinet in a research report on Friday, February 7th. Finally, Roth Capital set a $103.00 price target on shares of Fortinet and gave the stock a “neutral” rating in a research report on Tuesday, April 22nd. One research analyst has rated the stock with a sell rating, twenty have assigned a hold rating, twelve have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $104.80.

Fortinet Price Performance

Shares of FTNT stock opened at $102.02 on Friday. The firm’s 50 day moving average price is $99.68 and its two-hundred day moving average price is $99.48. The stock has a market cap of $78.09 billion, a PE ratio of 45.14, a PEG ratio of 4.19 and a beta of 1.16. Fortinet has a 52-week low of $54.57 and a 52-week high of $114.82. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.39 and a current ratio of 1.47.

Insider Buying and Selling at Fortinet

In other news, CEO Ken Xie sold 206,000 shares of the business’s stock in a transaction dated Monday, March 10th. The shares were sold at an average price of $96.93, for a total transaction of $19,967,580.00. Following the transaction, the chief executive officer now directly owns 51,391,879 shares in the company, valued at $4,981,414,831.47. The trade was a 0.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director William H. Neukom acquired 328 shares of the stock in a transaction dated Thursday, March 6th. The shares were purchased at an average price of $106.33 per share, for a total transaction of $34,876.24. Following the completion of the purchase, the director now directly owns 300,006 shares in the company, valued at $31,899,637.98. The trade was a 0.11% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have sold 697,818 shares of company stock worth $69,539,128. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of FTNT. Manchester Capital Management LLC grew its stake in Fortinet by 13.5% in the 4th quarter. Manchester Capital Management LLC now owns 843 shares of the software maker’s stock valued at $80,000 after buying an additional 100 shares during the last quarter. Peloton Wealth Strategists grew its stake in Fortinet by 2.4% in the 1st quarter. Peloton Wealth Strategists now owns 4,330 shares of the software maker’s stock valued at $417,000 after buying an additional 100 shares during the last quarter. Hemington Wealth Management grew its stake in Fortinet by 16.6% in the 1st quarter. Hemington Wealth Management now owns 752 shares of the software maker’s stock valued at $72,000 after buying an additional 107 shares during the last quarter. Citizens Financial Group Inc. RI grew its stake in Fortinet by 0.9% in the 1st quarter. Citizens Financial Group Inc. RI now owns 12,334 shares of the software maker’s stock valued at $1,187,000 after buying an additional 107 shares during the last quarter. Finally, SageView Advisory Group LLC grew its stake in Fortinet by 3.5% in the 1st quarter. SageView Advisory Group LLC now owns 3,166 shares of the software maker’s stock valued at $305,000 after buying an additional 108 shares during the last quarter. 83.71% of the stock is currently owned by institutional investors and hedge funds.

About Fortinet

Fortinet, Inc provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products.