Fortinet, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 11, 2026.
A multi-dimensional view of Fortinet, Inc. shows a business where five-year revenue growth of 20.93%, five-year EPS growth of 32.39%, and five-year free-cash-flow growth of 22.98% move in tandem with a net margin of 28.17% and an ROIC of 32.78%.
This analysis evaluates operational expansion, cash generation, balance sheet health, and valuation. With a current ratio of 1.28x and a debt-to-equity ratio of 0.32x, the balance sheet provides a solid foundation for evaluating the sustainability of the company's growth trajectory.
Fortinet, Inc. has market cap of $114.51B and closed at $156 on September 11, 2026.
Five-year revenue CAGR is 20.93% and five-year EPS CAGR is 32.39%.
Five-year free-cash-flow CAGR is 22.98%.
Net margin is 28.17% and ROIC is 32.78%.
Current ratio is 1.28x and debt-to-equity is 0.32x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Evaluating Operational Integration Across Growth and Quality Metrics
Analyzing Fortinet, Inc. requires evaluating whether top-line expansion, cash generation, profitability, balance sheet strength, and market valuation present a unified fundamental picture. At the closing price of $156 on September 11, 2026, the market has priced in high expectations, making a thorough examination of the underlying business metrics essential before assessing the stock price.
This research note evaluates the company's five-year revenue CAGR of 20.93% and compares it to a five-year EPS CAGR of 32.39%. To verify the quality of these earnings, we cross-reference them with a five-year free cash flow CAGR of 22.98%, ensuring that the growth thesis is supported by actual cash generation rather than accounting adjustments.
Current compounder snapshot · FTNT
Live supporting context; not part of the article's frozen 2026-09-11 evidence snapshot.
A High-Level Assessment of Cybersecurity Financial Health
As an operating business within the Technology sector, Fortinet, Inc. must be evaluated on its financial metrics rather than market sentiment. This initial snapshot integrates market capitalization, valuation multiples, historical growth, profitability ratios, and leverage metrics to establish a baseline before analyzing specific financial trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered. Q2 FY2026 (2026-06-30): $2.05B.
+546.75% over 10Y
tgmcharts.com
Five-year revenue CAGR: 20.93%. This is endpoint-to-endpoint across the five-year window — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 20.93% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Translating Enterprise Sales Into Shareholder Net Income
Growth conversion measures how effectively top-line expansion flows down to net income on a per-share basis. The company's five-year revenue CAGR of 20.93% serves as the primary indicator of demand, while a five-year EPS CAGR of 32.39% shows the actual return delivered to shareholders. Because EPS expansion has outpaced revenue growth, we must examine whether this outperformance is supported by cash flow and operating efficiency.
EPS
FTNT EPS
$0.83
EPS history shows how much of the business growth has reached shareholders. Q2 FY2026 (2026-06-30): $0.83.
≈104x over 10Y
tgmcharts.com
Five-year EPS CAGR: 32.39%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 32.39% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Earnings Quality Through Cash Generation
Free cash flow serves as a critical check on reported net income, highlighting any discrepancies between accounting profits and actual cash inflows. With a five-year free cash flow CAGR of 22.98%, the cash generation profile remains strong. If free cash flow growth were to fall behind EPS growth, it would suggest a decline in the quality of earnings and warrant a more cautious outlook.
free cash flow
FTNT free cash flow
$965.60M
Free cash flow checks whether earnings are converting into owner cash. Q2 FY2026 (2026-06-30): $965.60M.
≈14x over 10Y
tgmcharts.com
Five-year free-cash-flow CAGR: 22.98%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 22.98% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Assessing Operating Efficiency and Return on Invested Capital
The sustainability of a company's growth depends on its operating efficiency and the returns generated on reinvested capital. A net margin of 28.17% demonstrates strong profitability, while an ROIC of 32.78% indicates highly efficient capital allocation. These metrics suggest that the company's historical growth has been value-creative rather than capital-dilutive.
net margin
FTNT net margin
29.61%
Net margin is the operating-quality check behind the growth record. Q2 FY2026 (2026-06-30): 29.61%.
+27.6pp over 10Y
tgmcharts.com
Net margin (TTM): 28.17%. The bars below are reported fiscal periods (quarterly where available).
Net margin of 28.17% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
ROIC
FTNT ROIC
32.78%
ROIC tests whether the business earns enough on reinvested capital to deserve attention. Q2 FY2026 (2026-06-30): 32.78%.
+32.3pp over 10Y
tgmcharts.com
Latest ROIC: 32.78%.
ROIC of 32.78% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity and Leverage Profiles as Operational Safeguards
A robust balance sheet provides the necessary flexibility to navigate economic downturns and fund future expansion. A current ratio of 1.28x indicates adequate short-term liquidity, while a debt-to-equity ratio of 0.32x shows a conservative capital structure. These metrics are critical, as even highly profitable companies can face operational challenges if leverage increases or liquidity tightens.
debt-to-equity
FTNT debt-to-equity Chart
0.81x
Debt-to-equity keeps the checkup honest about balance-sheet flexibility. Historical series through 2025-12-31.
tgmcharts.com
Latest debt-to-equity ratio: 0.32x.
Debt-to-equity of 0.32x and current ratio of 1.28x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples and the Valuation Framework
Valuation metrics reflect the growth and quality expectations that the market has priced into the stock. Trading at a P/E ratio of 54.95x and offering an earnings yield of 1.82%, the current market price reflects high expectations for continued operational execution. This valuation sits above the analyst DCF (FMP) reference estimate, suggesting that the current stock price lacks a conventional margin of safety.
The close at $156 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
The Balance of Operational Drivers and Execution Risks
The positive fundamental case rests on the continued alignment of revenue growth, EPS growth, free cash flow generation, strong margins, high ROIC, and balance sheet flexibility. Conversely, the primary risk is that any deceleration in these key metrics could lead to a valuation contraction, particularly given that current multiples reflect a premium compared to historical averages.
Bull and bear case
Fundamental support
Five-year revenue CAGR of 20.93% and five-year EPS CAGR of 32.39% support the business case.
Net margin of 28.17% and ROIC of 32.78% are the quality checks behind the thesis.
Fundamental pressure
Free-cash-flow CAGR of 22.98% can weaken the read if it falls away from EPS growth.
Debt-to-equity of 0.32x and current ratio of 1.28x are the balance-sheet checks that can change the view.
A Synthesized Perspective on Long-Term Fundamental Trends
This fundamental assessment would require revision if future financial reports show a meaningful divergence in revenue growth, EPS growth, free cash flow generation, ROIC, or leverage metrics from the historical trends detailed above. This analysis is intended for informational purposes and does not constitute personalized investment advice.
FAQ
What is the fundamental read on FTNT?
Fortinet, Inc. is judged through revenue growth of 20.93%, EPS growth of 32.39%, free-cash-flow growth of 22.98%, net margin of 28.17%, and ROIC of 32.78%.
Which FTNT fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this FTNT checkup refresh?
Its figures are as of September 11, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
Revenue growth moving away from the current five-year CAGR of 20.93%.
Free-cash-flow growth drifting away from five-year EPS CAGR of 32.39%.
ROIC or balance-sheet flexibility weakening from ROIC of 32.78% and debt-to-equity of 0.32x.
The bottom line
Fortinet, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
“Product revenue increased 52% and 46% during the three and six months ended June 30, 2026, respectively, compared to the same periods last year, primarily driven by hardware revenue growth resulting from higher unit shipments year over year and recent pricing actions.”
“Total gross margin decreased 0.5 percentage points during each of the three and six months ended June 30, 2026, compared to the same periods last year, primarily due to a shift in the revenue mix from service revenue to lower margin product revenue.”
“Operating expenses as a percentage of revenue decreased by 6.0 and 4.4 percentage points during the three and six months ended June 30, 2026, respectively, compared to the same periods last year, mainly because our revenue growth outpaced the growth in our personnel costs.”
“Operating margin increased 5.6 and 3.8 percentage points during the three and six months ended June 30, 2026, respectively, driven by revenue growth exceeding expense growth, resulting in improved operating leverage, partially offset by lower total gross margin.”
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.
