A ransomware group identified as Qilin, also known as Phantom Mantis, is currently exploiting vulnerabilities in Fortinet (FTNT, Financial) to execute code remotely and bypass authentication mechanisms. This cybercrime syndicate, operational since August 2022, has reportedly impacted over 310 victims so far. Among the affected are notable entities such as Yangfeng, LeeEnterprises, and Synnovis.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 37 analysts, the average target price for Fortinet Inc (FTNT, Financial) is $108.54 with a high estimate of $135.00 and a low estimate of $83.00. The average target implies an
upside of 4.21%
from the current price of $104.16. More detailed estimate data can be found on the Fortinet Inc (FTNT) Forecast page.
Based on the consensus recommendation from 46 brokerage firms, Fortinet Inc’s (FTNT, Financial) average brokerage recommendation is currently 2.6, indicating “Hold” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fortinet Inc (FTNT, Financial) in one year is $99.57, suggesting a
downside
of 4.41% from the current price of $104.16. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the Fortinet Inc (FTNT) Summary page.
FTNT Key Business Developments
Release Date: May 07, 2025
- Revenue: $1.54 billion, a growth of 14%.
- Product Revenue: $459 million, increased by 12%.
- Service Revenue: $1.08 billion, grew by 14%.
- Gross Margin: 81.9%, increased by 380 basis points.
- Operating Margin: Record 34.2%, increased by 570 basis points.
- Free Cash Flow: $783 million, with a margin of 51%.
- Total Billings: $1.6 billion, grew by 14%.
- Unified SASE Billing Growth: 18%, accounting for 25% of the business.
- AI-driven SecOps Billing Growth: 29%, accounting for 10% of the business.
- RPO (Remaining Performance Obligations): $6.5 billion, grew by 12%.
- Current RPO: $3.4 billion, grew by over 15%.
- Adjusted Free Cash Flow: $839 million, representing a margin of 54%.
- New Logos: Increased by 14% to over 6,300.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fortinet Inc (FTNT, Financial) reported a strong first quarter with billing revenue growth of 14% and a record operating margin of 34%.
- The company achieved a record free cash flow of $783 million, with a margin of 51%.
- Fortinet Inc (FTNT) saw significant growth in secure operations and unified SASE, with security service edge billing growth of over 110%.
- The company is recognized as the number 1 deployed firewall vendor worldwide and a market leader in SD-WAN and OT security.
- Fortinet Inc (FTNT) continues to invest in AI capabilities, holding over 500 issued and pending AI patents, and integrating AI technology into multiple products.
Negative Points
- There is uncertainty in the macroeconomic environment, which could influence customer investment decisions.
- The company is facing potential headwinds from US tariffs, although the impact is currently limited.
- Fortinet Inc (FTNT) is cautious about the broader economic outlook, maintaining its full-year billings and revenue guidance ranges.
- The company noted some hesitancy from sales teams due to geopolitical uncertainties and macroeconomic news.
- There is a potential risk of customers delaying purchases due to the evolving geopolitical environment and economic conditions.
