Fortinet Captures EMEA Momentum: Can It Secure Long-Term Growth?

Fortinet FTNT is sharpening its focus on EMEA (Europe, the Middle East and Africa) as a key growth driver, and recent results back it up. In the second quarter of 2025, EMEA revenues rose 18% year over year, outpacing the Americas and APAC, which grew 11% each. International markets now account for 40.9% of total revenues, with EMEA contributing $667.1 million, beating the Zacks Consensus Estimate by 2.94%. This momentum underscores the region’s pivotal role in the company’s ability to surpass revenue estimates.

Stringent regulatory requirements and the accelerating shift toward hybrid work environments are driving the growing demand for advanced cybersecurity and secure networking solutions across EMEA. Fortinet is capitalizing on this trend through its robust Security Fabric platform and integrated SASE (Secure Access Service Edge) offerings, which have emerged as preferred solutions for enterprises adopting zero-trust architectures. These technologies not only deliver comprehensive security but also offer cost efficiency and superior performance.

The company’s long-term optimism for EMEA is anchored in strategic infrastructure investments. The recent €40 million high-security data center in Torija, Spain, is aimed at delivering SaaS and SASE services across Europe, including major markets like France and Germany. This localized infrastructure not only ensures compliance but also reduces latency, strengthening Fortinet’s competitive edge in the region.

Fortinet's full-year 2025 revenues are projected to be between $6.67 billion and $6.82 billion (a 13.3% increase at the midpoint), and EMEA’s sustained leadership in growth is set to be a key driver in achieving these goals.

FTNT’s Key Rivals in the EMEA Region

Cisco Systems CSCO solidifies its EMEA position with $3.65 billion in fourth-quarter fiscal 2025 revenues, up 4% year over year. Cisco’s $28 billion Splunk acquisition strengthens security analytics and device-to-cloud coverage, while its Cyber Academy training and European co-innovation hubs deepen local ties. Leveraging its vast infrastructure, Cisco delivers an integrated platform spanning networking, security and AI, ensuring seamless, scalable protection for enterprises. This holistic approach gives Cisco a clear competitive edge over Fortinet’s narrower, point-solution model in addressing complex cybersecurity needs.

Palo Alto Networks PANW is accelerating in EMEA with 19% revenue growth in the fourth quarter of fiscal 2025, led by strong demand for Prisma Cloud, Cortex and SASE solutions. Palo Alto aligns with Europe’s digital ambitions, highlighted by its AI-driven Cortex XSIAM platform, which delivers SIEM, ASM and real-time threat detection. Partnerships such as its work with the U.K.’s Ministry of Justice and expanded regional support through Centres of Excellence reinforce its presence. Backed by solid cash flow and acquisitions, Palo Alto offers enterprises robust, future-ready cybersecurity.

FTNT’s Share Price Performance, Valuation & Estimates

Year to date, FTNT shares have declined 17.8%, underperforming the Zacks Security industry’s 7.6% gain and falling well behind the Zacks Computer and Technology sector’s 12.6% rise.

FTNT’s YTD Price Performance

From a valuation standpoint, Fortinet appears overvalued, trading at a Price/Book ratio of 28.85X, higher than the industry’s 20.21X. FTNT has a Value Score of D.

FTNT’s Valuation

The consensus mark for 2025 earnings is pegged at $2.51 per share, reflecting upward revisions of 3 cents over both the 30- and 60-day periods. The estimate indicates 5.91% year-over-year growth.

Fortinet stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research