Fortinet plunges more than 20% despite earnings beat and raised guidance
-20.09% to $139.10 from $174.08
What moved FTNT
- Adjusted EPS of $0.91 beat the $0.86 estimate, and revenue of $2.08 billion, up 20% year over year, edged past the roughly $2.06 billion consensus.
- Shares fell between roughly 20% and 27% across premarket and regular trading, among the steepest post-earnings drops of the season.
- Product revenue grew 37%, short of the roughly 50% growth some investors had been looking for, while service revenue growth also slowed; management tied part of the slowdown to timing on large enterprise deals and delayed activations.
- The company raised full-year 2026 billings guidance to $9.568-9.718 billion and revenue guidance to $8.125-8.215 billion, while lowering full-year service revenue guidance to $5.15-5.17 billion.
- Bank of America and Wedbush were among firms that downgraded the stock or cut price targets following the report.
Sources: GuruFocus · Benzinga · Investing.com · KuCoin