Overview
- Fortinet stock rallied to fresh highs Thursday, climbing about 15% in early trading after Wednesday's beat-and-raise Q1 report.
- Revenue reached $1.85 billion and adjusted EPS came in at $0.82, with product sales up 41% to $645 million and billings up 31% to $2.09 billion.
- The quarter produced record free cash flow of $1.01 billion and a roughly 36% non-GAAP operating margin.
- Fortinet raised guidance, projecting Q2 revenue of $1.83 billion to $1.93 billion and EPS of $0.72 to $0.76, and lifting full-year targets to $7.71 billion to $7.87 billion in revenue and $3.10 to $3.16 in EPS.
- Wall Street boosted views after the print, with BTIG upgrading to Buy at $125 and Rosenblatt and BofA setting targets of $125 and $130, as management pointed to networking–security convergence and AI-driven threats as demand drivers and observers flagged stiff SASE competition and past volatility as risks.