Is FTNT a good stock to buy now? We came across a bullish thesis on Fortinet, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on FTNT. Fortinet, Inc.’s share was trading at $84.20 as of March 10th. FTNT’s trailing and forward P/E were 34.79 and 28.25 , respectively according to Yahoo Finance.
Most notably, free cash flow generation remained exceptionally strong, with a 30% FCF margin and more than seven percentage points of year-over-year expansion, demonstrating the company’s disciplined cost structure, pricing power, and ability to convert growth into cash at scale. Revenue growth also reflected improving demand trends. Product revenue accelerated beyond 20% year over year, services revenue maintained steady growth near 12%, and billings once again outpaced revenue, indicating healthy forward demand.
The company’s Unified SASE platform stood out as a key growth driver, with billings rising roughly 40%, reinforcing the view that customers are increasingly adopting Fortinet’s integrated platform rather than purchasing isolated point solutions. Large enterprise deals and expanding remaining performance obligations further improved revenue visibility. Although net income declined despite double-digit revenue growth and strong cash generation, the pressure largely stemmed from modest gross-margin compression and higher SG&A as a share of revenue, reflecting strategic reinvestment and a shifting revenue mix rather than structural weakness.
Management’s guidance aligned broadly with expectations, with revenue ranges largely in line with forecasts and full-year growth suggesting a normalization toward low-teens expansion. Overall, Fortinet’s results indicate a company prioritizing durable growth, platform adoption, and market share expansion, while its strong free cash flow and expanding platform ecosystem support a favorable long-term investment thesis.
Previously, we covered a bullish thesis on Fortinet, Inc. (FTNT) by Dan in January 2025, which highlighted its expanding cybersecurity platform, AI-driven capabilities, strategic acquisitions, and focus on Secure Networking and Unified SASE. FTNT’s stock price has depreciated by approximately 15.23% since our coverage. Sergey shares a similar view but emphasizes on strong margins, accelerating product revenue, and exceptional free cash flow generation.
Fortinet, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held FTNT at the end of the fourth quarter which was 44 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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