FTNT Earnings Prediction
The chart below shows how FTNT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FTNT sees a -1.41% change in stock price 10 days leading up to the earnings, and a +1.91% change 10 days following the report. On the earnings day itself, the stock moves by +0.61%. This data can give you a slight idea of what to expect for the next quarter's release.
FTNT Key Earning Data
FTNT Earnings Analysis
Positive
Earnings Beat Expectations: Fortinet reported a strong earnings performance, beating expectations with an EPS of $0.58 compared to the expected $0.531.
Revenue Increase Analysis: Total revenue grew by 14%, reaching $1.54 billion, driven by strong product and service revenues.
Strong Q1 Operating Margin: Record first quarter operating margin of 34.2%, exceeding the high end of guidance by 320 basis points.
Record Free Cash Flow: Free cash flow reached a record $783 million, with a margin of 51%, indicating strong cash generation capabilities.
SASE and SecOps Growth: Unified SASE billings grew by 18%, and AI-driven SecOps billings increased by 29%, showcasing strong growth in these strategic areas.
Cybersecurity Market Leadership: Fortinet remains the number one deployed firewall vendor worldwide, highlighting its leadership in the cybersecurity market.
New Customer Acquisition Growth: The company has a strong pipeline of new logos, with a 14% increase in new customers, totaling over 6,300.
AI-Driven Growth Potential: Fortinet's innovative approach, including the integration of AI capabilities across its products, positions it well for future growth.
Operational Performance Confidence: The company is confident in its ability to achieve the rule of 45 for the sixth consecutive year, indicating strong operational performance.
Negative
Earnings Beat Amid Uncertainty: Despite beating earnings expectations, the company is maintaining its full-year guidance due to potential risks associated with the evolving geopolitical environment, indicating uncertainty in future performance.
Dollar Weakness Impact on Margins: The U.S. dollar weakened more than anticipated, which is expected to create an operating margin headwind of approximately 120 basis points in the second quarter and 90 basis points for the full year, impacting profitability.
Growth Rate Expectations: While the company reported strong growth in various segments, the overall growth rate of 14% may not be sufficient to meet the higher expectations set by the market, especially in a competitive landscape.
CFO Transition Uncertainty: The transition of CFO Keith Jensen, who is stepping down, may introduce uncertainty in financial leadership and strategy execution moving forward.
Customer Investment Outlook: The company noted that customer investment decisions could be influenced by the broader economic outlook, suggesting potential volatility in future sales and revenue growth.
FTNT FAQs
How does FTNT typically perform around its earnings report dates?
FTNT's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.41% change leading up to the report and a +1.91% change in the 10 days following the release.
Is Fortinet Inc (FTNT) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
FTNT Earning Call Sentiment
Fortinet, Inc. (NASDAQ:FTNT) Q1 2025 Earnings Call Transcript
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