Fortinet Inc. shares climbed to an all-time intraday high of $172.25 on Tuesday, capping a 117% surge over the past year as the cybersecurity company reported better-than-expected quarterly results.
The stock last traded at $171.86, just 1% below its 52-week peak, with a market capitalization of $126 billion. Revenue rose 26% year-over-year to $2.05 billion, while billings—a key indicator of future demand—jumped 33% to $2.37 billion. Product revenue surged 52% to $773 million, exceeding several analyst estimates.
The company’s gross profit margin stood at 80%, underscoring its pricing power in the cybersecurity market. Fortinet’s growth has been driven by enterprise demand for network security modernization, particularly as organizations prioritize AI-driven threat detection and response capabilities.
Analysts have responded with upward revisions. Rosenblatt raised its price target to $195, while Cantor Fitzgerald lifted its target to $185. Stifel increased its target to $175 and Scotiabank to $163. A total of 37 analysts have revised earnings estimates higher for the upcoming period, according to InvestingPro data.
Fortinet has also expanded its portfolio through strategic acquisitions, including the purchase of Virtue AI, an enterprise AI security platform, to strengthen its AI-driven security offerings. Terms of the deal were not disclosed.
Despite the strong performance, some valuation metrics suggest the stock may be trading above fair value, according to InvestingPro, which ranks Fortinet among companies considered most overvalued based on its proprietary metrics.
