Is FTNT a good stock to buy? 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 $79.64 as of April 15th. FTNT’s trailing and forward P/E were 32.52 and 26.39 respectively according to Yahoo Finance.
Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. FTNT is positioned as a leading cybersecurity platform company delivering strong growth and profitability through its integrated architecture strategy. The company reported robust FY2025 results, with Q4 billings reaching $2.37 billion (+18%) and revenue of $1.91 billion (+15%), driven by a recovery in product demand with hardware revenue growing above 20%.
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Full-year revenue totaled $6.8 billion (+14%), while operating income increased 16% and free cash flow reached $2.21 billion, representing a 33% margin. Profitability remains a standout, with operating margins at 37.3% and gross margins exceeding 80%, supporting a Rule of 45+ profile that underscores efficient growth at scale. Fortinet’s competitive advantage is anchored in its vertically integrated platform, where proprietary FortiOS and custom ASIC design deliver significant performance and cost efficiencies, supporting an estimated 55% firewall unit share.
Growth is increasingly driven by higher-value segments, with Secure Networking billings rising 13% and Unified SASE expanding 40%, now contributing 27% of total billings, reinforcing platform consolidation and cross-sell opportunities across firewall, SD-WAN, and SASE solutions. AI further strengthens the investment case, with AI-driven SecOps growing 22% and expanding use cases across threat detection, segmentation, and data protection, supported by partnerships with NVIDIA.
While cost pressures from memory components and pricing adjustments present near-term considerations, Fortinet’s FY2026 guidance of ~12% revenue growth and sustained 33%+ operating margins reflects durable demand, with expansion in SASE, OT security, and large enterprise deals supporting continued double-digit growth and long-term value creation.
Previously, we covered a bullish thesis on Fortinet, Inc. (FTNT) by Dan in January 2025, which highlighted platform expansion, AI-driven innovation, and growth across Secure Networking and SASE. FTNT’s stock price has depreciated by approximately 19.82% since our coverage. Sergey shares a similar view but emphasizes on profitability strength, margin durability, and accelerating growth from platform convergence and AI-led SecOps.
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.
Disclosure: None.
