Fortinet stock rating reiterated at Buy by TD Cowen on strong growth

TD Cowen has reiterated its Buy rating and $100.00 price target for Fortinet (NASDAQ:FTNT) following the company's solid 2025 year-end results. The cybersecurity firm reported 20% product revenue growth and 18% billings growth, achieving what TD Cowen describes as 'Rule-of-45 performance' for the sixth consecutive year. This strong performance is supported by Fortinet’s impressive 80.46% gross profit margin and 14.17% overall revenue growth for the last twelve months. The company has reaffirmed its long-term performance targets and provided guidance for 2026, projecting healthy revenue growth of 13% at the midpoint of its forecast range. With a 5-year revenue CAGR of 22%, Fortinet has demonstrated consistent growth, though its current P/E ratio of 32.56 suggests investors are paying a premium for this growth trajectory. The company’s SASE (Secure Access Service Edge) and SecOps (Security Operations) segments combined generated 38% of fourth-quarter 2025 billings and continue to show strong momentum. TD Cowen noted that demand for Fortinet’s products is outweighing the impact of memory ASP (Average Selling Price) increases, supporting the firm’s maintained positive outlook on the stock. In other recent news, Fortinet reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.81, compared to the forecasted $0.74. The company’s revenue also exceeded projections, reaching $1.91 billion against an anticipated $1.86 billion. Despite these positive results, the stock experienced a decline in aftermarket trading. UBS raised its price target for Fortinet to $90 from $80, maintaining a Neutral rating, citing strong product growth and improved Enterprise License Agreement renewal activity. Jefferies also increased its price target for the company to $90 from $80, while keeping a Hold rating, following Fortinet’s impressive 18% year-over-year billings growth, which surpassed the consensus expectation of 12%. These developments reflect a positive outlook from analysts regarding Fortinet’s performance and potential.