Fortinet, Inc. (FTNT): A Bull Case Theory 

We came across a bullish thesis on Fortinet, Inc. on The Wealth Dynasty Report’s Substack. In this article, we will summarize the bulls’ thesis on FTNT. Fortinet, Inc.’s share was trading at $81.26 as of January 30st. FTNT’s trailing and forward P/E were 33.54 and 27.86 respectively according to Yahoo Finance.

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. FTNT is trading around $81, with a potential upside to $95, implying a 17% gain. The company operates a robust cybersecurity business, selling firewalls, network security, and cloud protection solutions to over 500,000 customers across 100+ countries. Its model combines hardware sales with high-margin recurring services, including FortiGuard subscriptions and FortiCare support, which now account for 69% of total revenue.

Recent investments in Unified SASE and AI-powered Security Operations have driven 28% growth in SASE billings, and management is expanding the data center footprint while making strategic acquisitions to stay ahead of competitors like Palo Alto Networks and Check Point.

Financially, Fortinet has demonstrated strong growth and profitability. Revenue rose from $4.42 billion in 2022 to $5.96 billion in 2024, with net income up 52% in the past year. The company generated $2.45 billion in operating cash flow and $1.88 billion in free cash flow in 2024, supporting aggressive share buybacks totaling $5.3 billion since 2020. Liquidity remains strong, with a current ratio of 1.32, a quick ratio of 1.22, positive working capital of $1.5 billion, and net cash of approximately $1 billion, giving Fortinet flexibility to invest, return capital, and weather downturns.

Valuation remains reasonable at 36x trailing P/E and 33x free cash flow, with expanding margins—gross margin at 81% and operating margin at 30%. With a shift toward high-margin services, international expansion, and continued AI-driven innovation, Fortinet is positioned for 10–15% annual returns over the next 5–15 years.

Risks include intense competition, potential billing slowdowns, macroeconomic pressures, and execution challenges. Overall, Fortinet combines strong growth, resilient cash generation, and a fortress balance sheet, making the current stock price an attractive entry point with substantial upside.

Previously, we covered a bullish thesis on Fortinet, Inc. (FTNT) by Dan in January 2025, which highlighted the company’s strong balance sheet, share repurchase program, AI-driven acquisitions, and expansion in Secure Networking, Unified SASE, and Security Operations. FTNT’s stock price has depreciated by approximately 18.19% since our coverage due to near-term concerns over valuation and slowing billings growth. The Wealth Dynasty Report shares a similar perspective but emphasizes Fortinet’s recurring revenue strength, free cash flow generation, and upside to $95.

Fortinet, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held FTNT at the end of the third quarter which was 46 in the previous quarter. While we acknowledge the risk and potential of FTNT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FTNT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.