TLDR
- Fortinet stock jumped 15% in premarket trading to $103.50 after Q1 earnings crushed estimates
- EPS came in at $0.82 vs $0.62 expected; revenue hit $1.85B, up 20% year-over-year
- Billings surged 31% to $2.09B, well above the $1.82B forecast
- BTIG upgraded FTNT to Buy with a $125 price target; BofA went even higher at $130
- Fortinet raised its 2026 revenue growth guidance to 15% at the midpoint, up from 12%
Fortinet stock was up 15% to $103.50 in Thursday premarket trading, making it the top performer in the S&P 500 before the opening bell.
The move came after Fortinet posted Q1 results Wednesday evening that beat across every major metric analysts track.
Adjusted EPS came in at $0.82, well above the $0.62 Wall Street was expecting. Revenue grew 20% year-over-year to $1.85 billion, topping the $1.73 billion estimate.
$FTNT Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.85B (Est. $1.73B) 🟢; +20% YoY
🔹 Adj. EPS: $0.82 (Est. $0.62) 🟢; +41% YoY
🔹 Product Revenue: $645M; +41% YoY
🔹 Billings: $2.09B; +31% YoYFY26 Guide:
🔹 Revenue: $7.710B-$7.870B (Est. $7.6B) 🟢
🔹 Adj. EPS: $3.10-$3.16 (Est.… pic.twitter.com/KV8zCds96m— Wall St Engine (@wallstengine) May 6, 2026
Billings — which factors in changes to deferred revenue — rose 31% to $2.09 billion, against a forecast of $1.82 billion.
Free cash flow hit a record $1.01 billion for the quarter, representing a 58% adjusted free cash flow margin.
Product revenue was a standout, accelerating 41% year-over-year to $645 million. Non-GAAP operating margin came in at 36%.
Analyst Upgrades Roll In
BTIG analyst Gray Powell upgraded FTNT to Buy and set a $125 price target — implying roughly 39% upside from Wednesday’s close. He called the results “outstanding” and said the beat surprised him given that his pre-earnings checks were already trending positive.
Powell also pushed back on the idea that AI is a headwind for cybersecurity firms, arguing that the rise of AI ransomware and AI data centers is actually driving more demand for Fortinet’s products.
Rosenblatt raised its price target to $125 from $105, keeping its Buy rating. The firm pointed to platform consolidation, AI-driven secure networking, and upgrades like FortiOS 8.0 and new G-Series firewalls as key growth drivers.
BofA Securities set the high bar on the Street, lifting its target to $130. Evercore ISI moved to $100, and Stifel raised to $102.
Guidance Gets a Lift
Fortinet raised its 2026 full-year revenue growth guidance to 15% at the midpoint, up from 12% previously.
The company kept its operating margin guidance at 33%–36% and reaffirmed its commitment to the Rule of 45 — a benchmark that adds revenue growth rate and free cash flow margin.
Q2 guidance also came in ahead of Street expectations.
Rosenblatt’s analysis noted Fortinet’s gross profit margin of 80%, a figure that reflects the company’s pricing power in the market.
InvestingPro’s fair value estimate for FTNT sits at $110.88, above Wednesday’s closing price of $89.95.
Fortinet said it continues to invest in cloud and AI infrastructure, with SASE momentum also flagged as a growth driver by multiple analysts.
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