Fortinet FTNT is scheduled to report first-quarter 2026 results on May 6, after market close.
Fortinet expects first-quarter revenues in the range of $1.7-$1.76 billion, on an assumed diluted share count of 746-750 million. The Zacks Consensus Estimate for the same is pegged at $1.73 billion, suggesting year-over-year growth of 12.43%.
The company forecasts first-quarter non-GAAP earnings in the range of 59-63 cents per share. The consensus mark is pegged at 61 cents per share, unchanged from the year-ago quarter, suggesting bottom-line growth of 5.17% year over year.
Fortinet’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.21%.
Fortinet, Inc. Price and EPS Surprise
Fortinet, Inc. price-eps-surprise | Fortinet, Inc. Quote
Factors to Consider
The cybersecurity vendor, known for its FortiGate firewalls and its converged networking-and-security platform, faces a quarter shaped by both visible product catalysts and macroeconomic crosscurrents.
Fortinet guided first-quarter 2026 billings between $1.770 billion and $1.870 billion. Non-GAAP operating margin was projected at 30-32%. The margin midpoint represented a sequential moderation from the record fourth-quarter profile, partly tied to seasonal expense cadence.
The first quarter is likely to have benefited from continued momentum in Unified SASE, where management on the fourth-quarter call highlighted Sovereign SASE adoption as a meaningful differentiator following 40% Unified SASE billings growth in the prior period. Operational technology (OT) security and large enterprise deal traction across the United States and Europe, both flagged by leadership, were also expected to support billings. The expansion of FortiCNAPP, integrating native Data Security Posture Management and runtime validation, broadened the cloud-risk portfolio, potentially aiding service revenue mix in the quarter under review.
The unveiling of FortiOS 8.0, embedding AI-driven security, next-generation SASE and quantum-safe capabilities, plus a security operations platform refresh featuring agentic AI and expanded endpoint protection, might have supported pipeline build in the to-be-reported quarter.
On the cautionary side, the company flagged risks from tariffs, trade disputes, supply chain dynamics, longer enterprise sales cycles, foreign exchange swings and broader macroeconomic pressures, all of which could constrain potential upside relative to its own forecast.
Given the balanced setup of solid platform momentum offset by guidance modesty, normalizing hardware comparisons and broader macroeconomic uncertainties, retaining existing positions appears prudent for current shareholders at this time. However, new investors may benefit from awaiting a more attractive entry point following the earnings release.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
FTNT has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:
Arista Networks ANET has an Earnings ESP of +2.79% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 28.8% in the year-to-date period. Arista Networks is scheduled to report its first-quarter 2026 results on May 5.
CDW CDW has an Earnings ESP of +1.90% and a Zacks Rank #2 at present.
CDW shares have lost 0.4% in the year-to-date period. CDW is set to report first-quarter fiscal 2026 results on May 6.
Audioeye AEYE has an Earnings ESP of +9.62% and a Zacks Rank #2 at present.
Audioeye shares have lost 27% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
