Fortinet Set to Report Q3 Earnings Amid Rising Cybersecurity Demand

Fortinet Inc FTNT is scheduled to announce its third-quarter earnings on Thursday. Analysts predict earnings per share (EPS) of 52 cents and revenues of $1.48 billion, with the results expected after the market closes.

Over the past year, the stock has surged by 60.85%, showing a year-to-date increase of 39.47%.

Fortinet Thrives in Cybersecurity Market with AI and IAM Strategy

The performance of Fortinet’s stock reflects its strong foothold in the growing cybersecurity sector, particularly as businesses increasingly seek identity and access management (IAM) solutions. This market is predicted to grow from $23.5 billion in 2024 to $47.1 billion by 2028, according to IDC.

Fortinet’s integrated Security Fabric and AI-driven products, like FortiGuard Labs and FortiAI, have gained traction among corporate clients. These innovations simplify the complexities of security needs, especially with the shift towards public cloud services.

Additionally, Fortinet is taking steps to close the cybersecurity skills gap through its Training Institute, aiming to educate 1 million professionals by 2026. This initiative not only showcases its leadership but also positions the company uniquely in the market.

As the company approaches its earnings report, its focus on innovation and workforce development may help maintain its growth in the booming $500.7 billion cybersecurity market projected for 2030.

Now, let’s examine how Fortinet’s stock is performing in relation to Wall Street expectations.

Fortinet Stock Chart Shows Bullish Trends Ahead of Q3 Earnings

Currently, Fortinet’s stock faces some selling pressure, although it remains above its five, 20, and 50-day exponential moving averages, indicating a predominantly bullish trend.

Chart created using Benzinga Pro

With Fortinet trading at $80.51, the stock sits just below the 20-day simple moving average (SMA) of $80.71, reflecting some temporary bearish momentum. However, the price remains above the eight-day SMA of $79.20 and the 50-day SMA of $78.25, suggesting a continued bullish outlook in the near term. Furthermore, the stock is substantially higher than its 200-day SMA of $67.99, indicating long-term bullish potential.

The Moving Average Convergence Divergence (MACD) value stands at 0.27, supporting a bullish outlook, while the Relative Strength Index (RSI) is at 55.98 and climbing, which might signal an approach toward overbought conditions and a potential shift to bearish momentum.

In summary, while short-term risks exist, the long-term technical indicators for Fortinet stock remain positive.

Analysts Predict Potential Gains for Fortinet

Fortinet Ratings & Consensus Estimates: Currently, analysts rate Fortinet stock as Neutral, with a target price of $73.96.

Recent analyst projections from Rosenblatt, Cantor Fitzgerald, and Truist Securities suggest an average price target of $86, indicating a potential upside of 6.77%.

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

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