Fortinet expands cloud services with identity, storage, communication tools

SUNNYVALE, Calif. - Fortinet (NASDAQ:FTNT), a cybersecurity leader with a market capitalization of $73.6 billion and impressive revenue growth of ~14% over the last twelve months, announced on Wednesday an expansion of its FortiCloud global infrastructure with three new services aimed at enhancing security for hybrid work environments. According to InvestingPro analysis, the company maintains strong financial health with a "GREAT" overall score.

The cybersecurity company, which boasts an industry-leading gross profit margin of 81.3%, introduced FortiIdentity for cloud-delivered identity management, alongside two beta services: FortiDrive for secure file storage and FortiConnect for protected communications. InvestingPro analysis reveals 14+ additional key insights about Fortinet’s performance and valuation, available exclusively to subscribers.

According to the company’s press release, FortiIdentity offers secure single sign-on, multifactor authentication, FIDO2 passkeys, and identity federation across applications without requiring additional hardware or software. The service includes FortiPAM-as-a-Service for privileged access management with zero-trust network access checks.

FortiDrive provides encrypted file storage with collaboration features including real-time co-editing, version history, and granular access controls. FortiConnect integrates with FortiDrive to enable secure calling, messaging, meetings, and file sharing.

"These new services extend the power of the Fortinet Security Fabric into everyday productivity and access control, reinforcing our strategy to simplify security operations, reduce vendor sprawl, and empower hybrid work at scale," said Michael Xie, Founder, President, and Chief Technology Officer at Fortinet.

The company stated that its global hybrid-cloud infrastructure includes company-owned data centers in seven cities across North America, Europe, and Australia, complemented by over 160 points of presence through providers including Google Cloud, AWS, and Digital Realty.

Fortinet emphasized that the new services are designed to help organizations consolidate tools, enhance security posture, and reduce total cost of ownership while addressing data sovereignty requirements by enabling organizations to keep data local through its globally distributed infrastructure.

All three services integrate with the Fortinet Security Fabric, providing centralized visibility and policy enforcement across users, devices, applications, and data. For investors seeking deeper insights into Fortinet’s market position and growth potential, InvestingPro offers comprehensive research reports with detailed analysis of the company’s financial health, valuation metrics, and growth prospects.

In other recent news, Fortinet announced the addition of quantum-safe encryption features to its FortiOS 7.6 operating system. This update includes post-quantum cryptography methods to safeguard against emerging quantum computing threats. The National Institute of Standards and Technology-approved algorithms, such as ML-KEM, along with emerging algorithms like BIKE, HQC, and Frodo, have been integrated into the platform. Additionally, Fortinet shared the sad news of the passing of board member William H. Bill Neukom, who had been with the company since 2013 and contributed significantly to its growth. In the analyst community, JPMorgan maintained a neutral rating on Fortinet’s stock, with a price target of $105.00, citing concerns about the current product cycle. The investment bank expressed caution ahead of Fortinet’s upcoming second-quarter earnings report, noting elevated investor interest from last year’s product cycle promotion. Meanwhile, other cybersecurity firms, such as CyberArk, could potentially benefit from security vulnerabilities recently exploited in Microsoft systems, according to TD Cowen analyst Shaul Eyal. The U.S. government is currently investigating these breaches, which have impacted various sectors.

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