News · Fortinet, Inc. (FTNT) · Technology

Fortinet falls after quarterly results show mixed beats and signs of slowing growth

Session of October 28, 2026 · Published October 29, 2026 · 3 min read

What happened

Fortinet (FTNT) fell 5.9% on October 28, 2026, after reporting third-quarter results that beat several metrics but raised concerns about slowing revenue in one business segment. The company reported revenue of $2.08 billion, billings of $2.34 billion and non-GAAP EPS of $0.91, according to GlobeNewsWire and Seeking Alpha. Shares opened 0.7% below the previous close and closed at $174.08 as trading volume ran 2.5 times its 20-day average.

Closing price over the last 30 trading sessions. On October 28, 2026, FTNT closed at $174.08, down 5.9% on the day and 0.9% higher than 30 sessions earlier.

How big was the move

The decline was 2.0 times a typical daily move and was 6.6 percentage points worse than the sector median; the Technology sector median on the day rose 0.7%. The S&P 500 rose 0.3% on the session. Fortinet’s beta of 1.28 indicates the stock tends to move more than the market. In the past five years the stock had 20 sessions with a decline of at least 5.9%; twenty trading days later the median result was a gain of 6.0%, and 14 of 20 were higher.

Each bar is one day's price change; the outlined bar is October 28, 2026. A typical daily move over the past year was 2.7%, so the latest move equals 2.2 times that. Moves outside the dashed lines (about 5.5%) are unusual.

The technical picture

The stock traded 4.3% below its 20-day moving average and 1.3% above its 50-day moving average, while it remained 36.2% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 130 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 46, in a neutral range. The stock was 11.7% below the 52-week high. Over one month the stock fell 1.1%, over three months it rose 12.9% and over one year it rose 104.1%, which is 91.5 percentage points ahead of the S&P 500. Volatility was 47% annualized over 60 days, higher than 55% of its own readings over five years.

Closing price over the past year. FTNT ends the period 10.6% below its 52-week high, above its 50-day average ($171.91) and above its 200-day average ($127.78).

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $7.88 billion, which grew 20.2% from a year earlier and outpaced the prior quarter’s growth of 18.8%. Diluted earnings per share were $3.08, which rose 26.7% from a year earlier. Gross margin was 79.7% versus 81.3% a year earlier, while operating margin was 33.0% versus 31.0% a year earlier. Free-cash-flow margin was 43.5% and return on invested capital was 32.8%. The balance sheet showed net cash of $3.25 billion and share count over one year decreased by 3.6%.

Quarterly revenue by period end. The latest quarter brought $2.1B, 20.5% more than the same quarter a year earlier.

Valuation metrics showed price to trailing earnings at 56.5 times trailing earnings and price to forward earnings at 50.4 times expected earnings. The stock’s price to trailing earnings is higher than 76% of its own readings over the past five years; the five-year median was 47.2 times earnings. Free-cash-flow yield was 2.6%.

Earnings and analyst expectations

On October 28, 2026, Fortinet reported earnings per share of $0.91 against $0.86 expected, 5.8% above estimates, marking 15 consecutive quarters beating estimates. Management said results beat the midpoint of guidance across billings, revenue, operating margin and EPS, and cited broad demand for network security, secure access service edge, operational-technology security and artificial-intelligence-related offerings, according to GlobeNewsWire and Seeking Alpha. GAAP EPS was $0.86, GAAP operating margin was 34% and non-GAAP operating margin was 38%. Operating cash flow was $946 million and free cash flow was $865 million; product revenue was $765 million and billings were $2.34 billion.

Diluted earnings per share by quarter. The latest quarter shows $0.86, against $0.62 in the same quarter a year earlier.

Despite the beats, commentary that revenue growth was underwhelming and signs of slowing growth in one business segment contributed to the stock’s decline, according to Market Watch and Benzinga. The typical two-day reaction after recent reports was to fall 0.7%. Analysts’ consensus price target was $163.64, 6.0% below the closing price, based on 69 analysts; 42% of those have rated the stock Buy or Strong Buy and the consensus rating was Hold.

What to watch

Quarterly revenue of $2.08 billion and billings of $2.34 billion reported October 28, 2026
Non-GAAP EPS of $0.91 on October 28, 2026; 15 consecutive quarters beating estimates
Free cash flow of $865 million and operating cash flow of $946 million for the quarter
Price to trailing earnings at 56.5 times trailing earnings and price to forward earnings at 50.4 times expected earnings
Trading volume 2.5 times its 20-day average on October 28, 2026

Full FTNT analysis: scores, chart and financials →