Fortinet Gears Up For Q3 Earnings As Cyber Demand Drives Momentum

Zinger Key Points

Fortinet's stock is up 60.85% over the past year, buoyed by demand for AI-powered and identity-focused cybersecurity solutions.
Analysts expect Q3 EPS of $0.52 and revenues of $1.48 billion, with the company benefiting from its strong positioning.
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Fortinet Inc FTNT will be reporting its third-quarter earnings on Thursday. Wall Street expects 52 cents in EPS and $1.48 billion in revenues as the company reports after market hours.

The stock is up 60.85% over the past year, and 39.47% year-to-date.

Fortinet Stock Rides Cyber Demand Boom With AI & IAM Focus

Fortinet's stock performance has been bolstered by its strong positioning in the expanding cybersecurity market, particularly as demand for identity and access management (IAM) solutions grows.

With the IAM market projected to double from $23.5 billion in 2024 to $47.1 billion by 2028 by IDC, Fortinet's integrated Security Fabric and AI-powered offerings, including FortiGuard Labs and FortiAI, have resonated strongly with enterprise customers. These technologies enable comprehensive, scalable security, simplifying complex threat landscapes, especially with the rising shift to public cloud deployments.

Fortinet's commitment to addressing the critical cybersecurity skills gap through its Training Institute, aiming to train 1 million professionals by 2026, further solidifies its industry leadership.

As it heads into third-quarter earnings, Fortinet's proactive approach to innovation and workforce development enhances its long-term growth potential amid a rapidly growing $500.7 billion cybersecurity market forecast through 2030.

Let’s look at what the charts indicate for Fortinet stock and how the stock currently maps against Wall Street estimates.

Fortinet Stock Chart Strongly Bullish Ahead Of Q3 Earnings

Fortinet stock is currently facing selling pressure despite its share price being above its five, 20 and 50-day exponential moving averages, suggesting the overall trend remains strongly bullish.

Chart created using Benzinga Pro

However, with Fortinet stock trading at $80.51, below the 20-day simple moving average (SMA) of $80.71, some short-term bearish momentum prevails.

The price is above the eight-day SMA of $79.20 and the 50-day SMA of $78.25, reinforcing a bullish outlook in the near term. Adding to the positive side, Fortinet’s price also remains well above its 200-day SMA of $67.99, which suggests bullish potential for the longer-term.

The Moving Average Convergence Divergence (MACD) reading of 0.27 further supports a bullish stance, while the Relative Strength Index (RSI) at 55.98, and rising, indicates that Fortinet be heading towards the overbought territory, potentially setting the stage for a bearish reversal.

Overall, while short-term risks persist, the longer-term technical indicators remain favorable for Fortinet stock.

Fortinet Analysts See 7% Upside

Fortinet Ratings & Consensus Estimates: The consensus analyst rating on Fortinet stock stands at a Neutral currently with a price target of $73.96.

The latest analyst ratings from Rosenblatt, Cantor Fitzgerald and Truist Securities set an average price target of $86 for Fortinet stock, implying a 6.77% upside.

Price Action: Fortinet stock was trading at $80.55 at the time of publication.

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