Over the past 52 weeks, an unlikely winner has appeared among cybersecurity shares. This supply is Fortinet NASDAQ: FTNTThe rally field was provided with a 52-week total yield of 50% as of March 25. This exceeds the profitability of much more discussed cybersecurity shares, such as Palo Alto Networks Nasdaq: Panw And crowdstick NASDAQ: CRWDThe field these shares provided a total yield of 33% and 19%, respectively.
So what is behind the impressive growth of this action, and can Fortinet continue this strong performance? There are several interesting catalysts that can help raise stocks above. One refers to the use of the company by semiconductors.
Understanding Fortinet: Asics raises the company
Fortinet today
As of 04:00 on the East
- 52-week range
- $ 54.57
▼
$ 114.82
- P/e ratio.
- 44.04
- Value is valuable
- $ 105.69
Fortinet is one of the largest players in the cybersecurity industry. All this begins with a huge and growing market share in the equipment of the firewall. These devices consider data that are trying to leave or enter a network based on a certain physical place. It either blocks or allows information to pass through the network on the basis of safety and protocol rules.
Fortinet occupied more than 50% of the market share in the physical firewall supplied in 2024. One of the ways that Fortinet supports its physical firewall is to create them using integrated circuits specific to the application (ASICS). Fortinet calls this Fortiasic technology.
Engineers set up ASIC to complete a specific task. This significantly increases their productivity and energy efficiency compared to general use chips. This fits into the company’s cybersecurity services, namely the software that is sold at the top of its equipment. With the growing requirements of ASICS cybersecurity, Fortinet software is more effectively launched. This ensures the security of the network, preventing significant slowdown.
Fortinet services have become an increasing part of their business, amounting to 68% of the total income in 2024. Asics Fortinet gives them a clear advantage. This is the only cybersecurity company using ASICS. The increase in the contribution of services from the services helped Fortinet massively increase its adjusted operational margin by 660 basic points in 2024.
FTNT income Beat and demonstrates positive for the future growth of services
Fortinet has recently published an income report that has helped an amazing increase in the action over the past 52 weeks. On February 6, Fortinet announced profit by beating analysts for both sales and adjusted profit per share (EPS). Fortinet reached sales growth more than 17%, surpassing average expectations of 13% growth. The adjusted EPS grew by 45%, blowing out the average estimated growth of 20%from the waterField
Nevertheless, the shares acquired only 3% after that. This modest win was probably because the company’s management essentially corresponded to expectations. In general, the company leads an increase in income by 13% and only 3% adjusted the growth of EPS in 2025. However, one of the part of the Fortinet income report, which was especially encouraging, was the income from the product.
Revenues from the product grew a little less than 18%, the fastest pace from the 2nd quarter of 2023. This is nice to see, because more installed physical products leads to an increase in more income from Fortinet service with a high level of margin.
Fortinet price, Inc. (FTNT) on Thursday, March 27, 2025
Opportunities for FTNT in the future
ASIC Fortinet support hardware is used in data processing centers. During the income call, the analyst suggested that hypermers, such as Oracle NYSE: OrCluse Fortiasic to protect their data centers. The analyst asked how much Fortinet works to increase Fortiasic sales, as hypermers expand their data centers.
The chief executive director Ken Si did not answer this question directly. Nevertheless, he said that Fortinet sees a huge opportunity to provide not only general data processing centers, but also data processing centers. The focus on AI makes sense. Thanks to the General Artificial Creation of AI, large volumes of data, the use of ASIC can provide this data in a particularly effective way.
The company also discussed a significant renewal cycle that it expects its product segment in 2026 and 2027. In these years, more than a third of the base of the firewall of the company will see the end of support, which will force many customers to update their products. As indicated earlier, more sales of products leads to an increase in sales of services.
The company may have a particularly strong opportunity to stimulate the growth of services with this renewal cycle. Its new hardware products can launch much more applications than old ones. This means that the company can now sell even more software, because its new equipment is compatible with a large number of software sentences.
In general, it is difficult to say what will happen in the rest of 2025 for Fortinet shares. However, the company has created a strong differentiation of the product. The prospect of higher sales of products is an encouraging sign. In addition, the potential possibility of the AI data processing center can be huge. Fortinet is well tuned to stimulate long -term growth.
Before considering Fortinet, you will want to hear this.
Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before a wider market is won … and Fortinet was not on the list.
While Fortinet currently has a retention rating among analysts, high -rating analysts believe that these five promotions are better buying.
View five shares here
Unlock a free copy of the MarketBeat integrated leadership for investment in the pot and find which Cannabis companies are ready for growth. In addition, you will get exclusive access to our daily ballot with expert recommendations for shares from the best analysts by Wall Stretge.
Get this free report