Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Cantor Fitzgerald lowered its price target on Fortinet (NASDAQ:FTNT) to $87.00 from $110.00 on Thursday, while maintaining a Neutral rating on the cybersecurity company following its second-quarter results. The stock, currently trading near its 52-week low at $71.84, shows mixed signals according to InvestingPro analysis, which rates the company’s overall financial health as "GREAT" with a score of 3.03.
Fortinet delivered solid performance in the second quarter of 2025, with product revenue, billings, and operating margins all exceeding FactSet estimates, though these gains were partially offset by slower subscription revenue growth. The company maintains impressive gross profit margins of 81.29% and achieved revenue growth of 14.46% over the last twelve months.
The company’s services revenue showed signs of softening, prompting Fortinet to lower its services revenue guidance, which impacted the overall performance assessment from Cantor Fitzgerald.
Fortinet reiterated its full-year revenue guidance midpoint and raised its operating margin guidance by 30 basis points to 32.8% at the midpoint, showing confidence in its operational efficiency despite the services slowdown.
Cantor Fitzgerald noted that the 2026 product refresh cohort is already 40-50% complete, which is further along than expected, suggesting potentially weaker demand outside of the upgrade cycle. For deeper insights into Fortinet’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s competitive position and future outlook.
In other recent news, Fortinet reported mixed quarterly earnings, with revenues meeting expectations but service revenues and cash flow missing analyst targets. The company’s billings and product revenues exceeded expectations, yet overall revenue and product revenue fell short of buy-side expectations, according to Roth/MKM, which subsequently lowered its price target to $90. Rosenblatt downgraded Fortinet from Buy to Neutral, citing concerns over a firewall refresh, and adjusted its price target to $85 despite Fortinet’s solid second-quarter results and raised full-year 2025 guidance. TD Cowen also downgraded Fortinet to Hold, reducing the price target to $105 due to uncertainties in core appliance growth after the current refresh cycle. Stifel maintained a Hold rating while lowering the price target to $85, noting that Fortinet’s second-quarter results exceeded expectations with a 15.4% increase in billings and a 13.6% rise in revenue year-over-year. UBS also adjusted its price target to $90, maintaining a Neutral rating, following second-quarter results that showed billings and revenue exceeding consensus expectations by 3% and 2%, respectively. Fortinet’s operating margin stood at 33%, with a 17% growth in service billings reported.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.