Fortinet, Inc. is a global leader in cybersecurity, offering integrated and automated solutions that provide broad visibility and segmentation of the digital attack surface. The company's primary platform, the Fortinet Security Fabric, delivers automated protection, detection, and response capabilities, catering to a diverse range of customers including large enterprises, communication service providers, government organizations, and small to medium-sized enterprises . Fortinet generates revenue from product sales, primarily through secure networking product lines, and service offerings, which include security subscriptions and technical support .
- Service Offerings - Includes security subscriptions and technical support, driving significant growth through the strength of security subscription services.
- Secure Networking Solutions - Provides high-performance physical and virtual machine appliances designed to secure network infrastructures.
- Unified SASE - Offers a comprehensive approach to secure access service edge, integrating networking and security functions.
- SecOps Technologies - Delivers solutions for security operations, enhancing detection and response capabilities.
- Cloud Security Solutions - Offers protection for cloud environments, ensuring secure cloud adoption and management.
- Professional Services and Training - Provides expert consulting and training services to enhance cybersecurity strategies and skills.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ken Xie ExecutiveBoard | CEO and Chairman of the Board | Board Member at TeleNav, Inc. | Co-founder of Fortinet with over 25 years of experience in networking and security industries. Instrumental in Fortinet's growth as a global cybersecurity leader. | View Report → |
Christiane Ohlgart Executive | CFO (Effective May 15, 2025) | None | Joined Fortinet in 2016 as VP of Finance, later served as Chief Accounting Officer. Appointed CFO effective May 15, 2025, following Keith Jensen's retirement. | |
John Whittle Executive | COO and Corporate Secretary | None | Joined Fortinet in 2006 as General Counsel. Held various roles, including EVP of Corporate Development and Chief Legal Officer, before becoming COO in January 2024. | |
Keith Jensen Executive | CFO (Retiring May 15, 2025) | None | Joined Fortinet in 2014, served as Chief Accounting Officer and Interim CFO before becoming CFO in 2018. Announced retirement effective May 15, 2025. | |
Admiral James Stavridis Board | Director | Managing Director at Carlyle Group; Chair of Rockefeller Foundation | Retired 4-star Admiral and former Supreme Allied Commander of NATO. Expert in cybersecurity and global affairs. | |
Janet Napolitano Board | Director | Board Member at Vir Biotechnology, Zoom; Trustee at RAND Corporation | Former Secretary of Homeland Security and President of the University of California. Founder of the Center for Security in Politics at UC Berkeley. | |
Jean Hu Board | Director | EVP and CFO of AMD | Extensive experience in finance and technology. Currently EVP and CFO of AMD. | |
Judith Sim Board | Lead Independent Director | None | Former Chief Marketing Officer at Oracle. Appointed Lead Independent Director in April 2024. | |
Kenneth A. Goldman Board | Director | President of Hillspire LLC; Board Member at GoPro, RingCentral, Zuora, VRF | Extensive experience in finance and governance. Former CFO of Yahoo and currently serves on multiple boards and as President of Hillspire LLC. | |
Mary Agnes Wilderotter Board | Director | Chair and CEO of Wilderotter Vineyards; Board Member at Costco, DocuSign, etc. | Former CEO of Frontier Communications. Holds multiple board positions and leadership roles, including Chair of DocuSign and CEO of Wilderotter Vineyards. | |
Ming Hsieh Board | Director | Chairman and CEO of Fulgent Therapeutics Inc. | Founder of Cogent, Inc., and former President of 3M Cogent. Currently leads Fulgent Therapeutics. | |
William H. Neukom Board | Director | Founder and CEO of World Justice Project; Lecturer at Stanford Law School | Former lead lawyer for Microsoft and CEO of the San Francisco Giants. Founder of the World Justice Project and lecturer at Stanford Law School. |
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The growth in OT billings was 19% this quarter; given the competitive landscape in OT security, how sustainable is this growth, and what strategies are you implementing to maintain or increase it?
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With mid-range and high-end hardware appliance shipments remaining stable but not showing significant growth, how do you plan to drive growth in these segments, and are you facing any challenges such as market saturation or increased competition?
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As larger vendors focus on discounting, bundling, and vendor financing, how is Fortinet addressing potential pricing pressures, and what impact do you expect this to have on your margins and revenue growth?
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Considering that some customers are hesitant to commit to multi-year deals without financing, what steps are you taking to provide financing solutions, and how might this affect your ability to secure longer-term contracts and predict revenue?
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You aim to become the #1 leader in SASE in the next few years; what challenges do you anticipate in displacing established competitors, and how will you differentiate your Sovereign SASE offerings to capture highly regulated vertical markets?
Research analysts who have asked questions during Fortinet earnings calls.
Brian Essex
JPMorgan Chase & Co.
4 questions for FTNT
Gabriela Borges
Goldman Sachs
4 questions for FTNT
Saket Kalia
Barclays Capital
4 questions for FTNT
Shaul Eyal
TD Cowen
4 questions for FTNT
Eric Heath
KeyBanc Capital Markets
3 questions for FTNT
Junaid Siddiqui
Truist Securities
3 questions for FTNT
Robbie Owens
Piper Sandler
3 questions for FTNT
Shrenik Kothari
Robert W. Baird & Co.
3 questions for FTNT
Tal Liani
Bank of America
3 questions for FTNT
Adam Borg
Stifel Financial Corp.
2 questions for FTNT
Fatima Boolani
Citi
2 questions for FTNT
Joseph Gallo
Jefferies & Company Inc.
2 questions for FTNT
Keith Bachman
BMO Capital Markets
2 questions for FTNT
Patrick Colville
Scotiabank
2 questions for FTNT
Andrew Nowinski
Wells Fargo
1 question for FTNT
Brad Zelnick
Credit Suisse
1 question for FTNT
Catharine Trebnick
Rosenblatt Securities
1 question for FTNT
Gray Powell
BTIG
1 question for FTNT
Hamza Fodderwala
Morgan Stanley
1 question for FTNT
Ittai Kidron
Oppenheimer & Company
1 question for FTNT
Joe Andrew
Scotiabank
1 question for FTNT
Keith Weiss
Morgan Stanley
1 question for FTNT
Max S.
Stifel Financial Corp.
1 question for FTNT
Rob Owens
Piper Sandler Companies
1 question for FTNT
Tomer Zilberman
Bank of America
1 question for FTNT
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Aruba Networks, Inc. | The company operates in extremely competitive markets characterized by rapid technological change. Competitors include those with greater financial, technical, marketing, and distribution resources, which may lead to competitive pressures such as price reductions or the addition of incremental features to products. |
The company faces competition from entities with broader product offerings and established relationships, which may discourage customers from purchasing its products. | |
Some competitors have significantly better brand recognition and broader product lines, allowing them to withstand market downturns better. | |
Certain competitors focus on delivering security services from the cloud, which may disrupt traditional markets and increase competition. | |
The company competes with others that may introduce products with superior performance or lower costs, potentially impacting market share. | |
Huawei Technologies Co., Ltd. | Competitors may leverage their relationships or incorporate functionality into existing products to discourage customers from switching. |
Larger competitors often have broader product lines and market focus, making them less susceptible to downturns in specific markets. | |
The company competes with entities that may bundle products and services, potentially impacting standalone product sales. | |
SonicWALL, Inc. | Smaller competitors specializing in single security threats may deliver specialized products to the market more quickly. |
Sophos Group Plc | Competitors may develop products or services that achieve greater market acceptance, disrupting the company's market position. |
VMware, Inc. | The competitive landscape includes companies with established customer bases and broader distribution networks. |
Certain competitors focus on cloud-based security services, which may challenge traditional product offerings. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Distributor A | Distributes Fortinet’s products and services globally | All | 29% of 2024 revenue (≈$1,727.2M = 29% of $5,955.8M ) and 31% of 2024 net A/R (≈$453.7M = 31% of $1,463.4M ). |
Distributor B | Distributes Fortinet’s products and services globally | All | 15% of 2024 revenue (≈$893.4M = 15% of $5,955.8M ) and 14% of 2024 net A/R (≈$204.9M = 14% of $1,463.4M ). |
Distributor C | Distributes Fortinet’s products and services globally | All | 13% of 2024 revenue (≈$774.3M = 13% of $5,955.8M ) and 10% of 2024 net A/R (≈$146.3M = 10% of $1,463.4M ). |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Perception Point | 2025 | Fortinet acquired Perception Point to enhance its secure portfolio by extending advanced e-mail and collaboration security across the modern workspace. No specific deal value was disclosed, but the acquisition is expected to boost first-quarter billings and full‐year revenue growth while slightly reducing the operating margin. |
Next DLP Holdings Limited | 2024 | Completed on August 5, 2024, this acquisition cost approximately $105.0 million in cash and aimed to strengthen Fortinet's position in both standalone enterprise DLP and integrated DLP within its SASE offerings. The deal included significant allocations to goodwill and intangible assets, contributing modest revenue growth while impacting gross and operating margins. |
Lacework Inc. | 2024 | Completed on August 1, 2024 for $152.3 million in cash, the acquisition of Lacework Inc. brings its Cloud-Native Application Protection Platform (CNAPP) into Fortinet’s portfolio, forming a comprehensive AI-driven cloud security solution. The deal also involved recognition of deferred tax assets and a gain on bargain purchase, with detailed allocations to various tangible and intangible assets. |
Alaxala Networks Corporation | 2022 | Fortinet achieved full ownership of Alaxala Networks Corporation by initially acquiring 75% in 2021 for $64.2 million in cash and then acquiring the remaining 25% in 2022 for $13.5 million in cash. This strategic move enhanced Fortinet's secure switching solutions integrated with its Security Fabric and contributed modest revenue growth, with the purchase price allocated to goodwill and other intangible assets. |
Recent press releases and 8-K filings for FTNT.
- Fortinet, Inc. (NASDAQ: FTNT) is named in a securities fraud class action for the period November 8, 2024 – August 6, 2025; the lead plaintiff deadline is November 21, 2025.
- The complaint alleges defendants misrepresented the profitability of the hardware refresh cycle, which relied on older products and was a small share of the business, and lacked a clear count of upgradeable FortiGate firewalls.
- It further claims Fortinet concealed that approximately half of the refresh was completed by the end of 2Q 2025, making prior positive statements materially misleading.
- Investors have until November 21, 2025 to ask the court to appoint them as lead plaintiff in the securities fraud class action against Fortinet.
- On August 6, 2025, Fortinet reported being “40% to 50%” through its 2026 firewall upgrade cycle, issued weaker-than-expected Q3 revenue guidance of $1.67 billion–$1.73 billion, and its shares fell 22% the following day.
- The lawsuit, covering November 8, 2024–August 6, 2025, alleges Fortinet misled investors about a “record” FortiGate upgrade cycle—projected to generate $400 million–$450 million in 2025–2026 revenue—and concealed its true upgrade pace.
- Robbins LLP filed a class action on behalf of investors who acquired Fortinet stock between November 8, 2024 and August 6, 2025 regarding alleged misrepresentations about FortiGate firewall upgrades.
- The complaint claims Fortinet understated the upgrade demand by failing to disclose unpredictable upgrade counts, excess existing firewall capacity, and limited business impact of older models.
- Upon revelation of these issues, Fortinet’s share price fell over 22%, from $96.58 to $75.30 on August 7, 2025.
- Eligible shareholders may apply to serve as lead plaintiff without paying fees or expenses; deadline details available through Robbins LLP.
- A shareholder class action covers stock purchases between Nov 8, 2024 and Aug 6, 2025, alleging misrepresentations about the upgrade cycle that led to a 22% share price decline.
- Investors have until Nov 21, 2025 to seek lead plaintiff appointment in the lawsuit.
- Affected shareholders can contact Bragar Eagel & Squire at no cost via Brandon Walker or Marion Passmore at (212) 355-4648 or [email protected].
- A class action lawsuit has been filed against Fortinet, Inc. (NASDAQ: FTNT) for alleged securities fraud covering the period November 8, 2024 to August 6, 2025.
- Plaintiffs contend Fortinet made materially false and misleading statements about its product refresh cycle’s profitability and failed to accurately disclose the number of upgradeable FortiGate firewalls, while concealing that roughly half of the refresh was completed by end of 2Q 2025.
- Fortinet shareholders have until November 21, 2025 to file a lead plaintiff motion in the case.
- Fortinet highlighted its AI security offerings: AI Assist now represents 11% of revenue (35% YoY growth) and the company holds over 550 AI patents, positioning it for AI infrastructure protection with proprietary ASIC chips.
- The company sees network security continuing to lead cybersecurity, integrating 30 functions in FortiOS and leveraging ASICs for real-time processing of high traffic, including DLP, CASB and WAF under its SASE firewall approach.
- Fortinet’s self-developed SASE, launched two years ago, is experiencing rapid cross-sell into its firewall base with sales cycles of 2–3 months, driving a > $1 billion SASE business and targeting market leadership.
- The end-of-support product refresh cycle is viewed as a minor growth driver; main growth stems from new features, higher network speeds via a newly announced ASIC, and expanding OT coverage (>$1 billion business, >20% YoY growth).
- The board approved an additional $1 billion share buyback, following $1.4 billion repurchased in August, reflecting confidence in the company’s long-term prospects.
- Fortinet’s AI-driven offerings—AI Assist, AI Protect, and AI Secure AI infrastructure—accounted for 11% of revenue with 35% growth in the last quarter, leveraging over 550 AI patents and custom ASICs for high-speed security processing.
- Using its integrated FortiOS platform and in-house ASICs, Fortinet has embedded 30 functions—including SD-WAN and SASE—into a unified firewall, aiming to simplify deployments and achieve rapid upsell cycles (2–3 months) versus 18–24 months for competitors.
- The company expects to outpace the industry’s 12% CAGR in network security over the next five years, driven by higher throughput from new ASICs, expanding attack surface (OT/IoT), and new security functions such as ZTNA, DLP, and CASB.
- The board approved an additional $1 billion share repurchase authorization, and Fortinet repurchased $1.4 billion in August, reflecting confidence in its long-term value creation strategy.
- Fortinet segments its AI security offerings into three categories—AI Assist, AI Drive Secure Op (11% of revenue, ~35% growth last quarter), and AI Protect/Secure AI—backed by over 550 AI patents, though adoption remains in the early stages.
- The company’s FortiOS platform integrates 30 security functions—half of which leverage proprietary FortiASICs for high-speed processing—and embeds SASE capabilities directly into its next-generation firewall.
- Enterprise growth is driven by new functionality (e.g., ZTNA, DLP, CASB), network speed upgrades via next-gen ASICs, and expansion into OT/IoT security (OT business > $1 billion, > 20% YoY growth), with regular upgrade cycles further bolstering product demand.
- In a normalized market environment, Fortinet expects product revenue to resume growth of around 10%, after a mid-single-digit decline in 2023 due to supply-chain and refresh dynamics.
- The board authorized an additional $1 billion share repurchase and executed $1.4 billion of buybacks in August, underscoring management’s confidence in valuation.
- Fortinet detailed its three-pronged AI security offering—AI Assist (≈11% of revenue, +35% growth), AI Protect, and AI Secure for infrastructure—backed by custom ASIC chips and 550+ AI patents to accelerate automation and threat detection.
- The company’s unified SASE integrates directly into its firewall platform, generating >$1 billion in revenue with >20% growth and benefiting from rapid upsell cycles (2–3 months vs. 18–24 months for peers).
- Key growth drivers include adding new security functions (ZTNA, DLP, CASB), deploying next-generation ASICs for higher network speeds, and expanding protection for OT/IoT environments (>$1 billion annual OT revenue, +20% YoY).
- Fortinet repurchased $1.4 billion of its shares in August following a $1 billion authorization boost and expects product revenue to normalize to ~10% growth in a stable market environment.
- Fortinet beat Q2 top-line expectations and achieved record margins, with unified SASE, AI-driven Secure Operations and OT security each growing over 20%, and enterprise deals over $1 million up 50% year-over-year.
- The company is 40–50% through its 2026 end-of-service refresh cohort—estimated via “pinging” registered units—acknowledging timing and replacement uncertainties due to its two-tier distribution model.
- Introduced a new-generation SASE firewall that integrates DLP, CASB, WAF and more in its FortiOS ASIC-powered platform, supporting hybrid on-prem and cloud deployments, including private SASE use cases.
- Reiterated a >12% CAGR target over the next 3–5 years (13% guidance for 2025), expecting to outgrow markets growing ~8% for secure networking, ~18% for unified SASE and ~10% for AI-driven security.
- Plans to invest in sales capacity, particularly in the US, to boost top-line growth (currently <50% of peers), and maintains an M&A philosophy prioritizing internal innovation and rigorous integration planning.