Can Fortinet's Large Enterprise Deals Drive Long-Term Revenue Growth?

Fortinet FTNT is gaining strong momentum among large enterprise customers, with deals over $1 million climbing more than 50% year over year. This growth reflects the company’s innovation, rising global demand for integrated cybersecurity solutions and effective go-to-market investments.

These large enterprise deals are reshaping Fortinet’s revenue profile. In the second quarter of 2025, total billings rose 15% year over year, driven by bigger, multi-product contracts. Looking ahead, the Zacks model projects Fortinet’s billings to grow 14% in 2025 and 11% in 2026, signaling sustained long-term visibility.

A major catalyst is enterprise customers’ preference for bundled solutions that integrate firewalls, SD-WAN, SASE and managed services, rather than standalone products. Fortinet’s Unified SASE and Security Operations (SecOps) businesses now account for about 35% of total billings, underscoring a clear shift toward recurring software and services. This mix enhances annual recurring revenue (ARR) visibility, extends customer relationships and improves renewal rates — key elements for durable growth.

Management’s raised full-year billings midpoint by $100 million underscores confidence in the sustainability of this momentum. Fortinet now expects 2025 revenues between $6.67 billion and $6.82 billion, representing 13.3% growth at the midpoint. The Zacks Consensus Estimate also points to continued upside, with revenues projected to increase 13.29% in 2025 and 11.05% in 2026.

With large enterprise deals driving multi-product adoption and recurring revenue expansion, Fortinet is well-positioned to sustain long-term growth. The ongoing success of these high-value contracts is set to solidify their role as a cornerstone of the company’s revenue strategy.

How Rivals Stack Up Against FTNT

Palo Alto Networks PANW challenges Fortinet in large enterprise deals with its AI-driven Strata, Prisma and Cortex platforms. PANW benefits from strong integration, recurring revenues and high-throughput NGFWs that boost cloud migration and hybrid work security. Recent wins and its planned CyberArk acquisition further strengthen Palo Alto’s enterprise cybersecurity dominance.

CrowdStrike Holdings CRWD secures an edge in enterprise deals with its AI-native Falcon platform, delivering unmatched endpoint protection and scalability. CrowdStrike strengthens its position through integrated deployments with Fortinet firewalls and strategic partnerships with Amazon and Nvidia, further strengthening its base. With these advances, CrowdStrike continues to expand its dominance in enterprise-grade cybersecurity.

FTNT’s Share Price Performance, Valuation & Estimates

Year to date, FTNT shares have declined 15.2%, underperforming the Zacks Security industry’s 12.5% gain and falling well behind the Zacks Computer and Technology sector’s 16% rise.

FTNT’s YTD Price Performance

From a valuation standpoint, Fortinet appears overvalued, trading at a Price/Book ratio of 29.85X, higher than the industry’s 21.12X. FTNT has a Value Score of D.

FTNT’s Valuation

The consensus mark for 2025 earnings is pegged at $2.51 per share, unchanged over the past 30 days and revised upward by 3 cents over the last 60-day period. 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.

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

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