Fortinet's Geographic Mix Improves: Can EMEA Drive More Upside?

Fortinet's FTNT geographic mix is evolving, with Europe, the Middle East and Africa (EMEA) emerging as a vital growth engine. In the second quarter of 2025, EMEA revenues jumped 18% year over year, outpacing the 11% growth in both the Americas and APAC. With international markets now representing a greater share of the business, EMEA’s performance is strengthening Fortinet’s overall pipeline while reducing reliance on North America.

This strength has been supported by the rising demand for advanced cybersecurity and secure networking solutions. The EMEA region’s adoption of hybrid work models and stricter data-sovereignty regulations has made integrated security offerings indispensable. Fortinet’s Security Fabric and Unified SASE offerings align with these needs, delivering strong performance, compliance and cost efficiency to enterprises adopting zero-trust strategies.

Fortinet is also expanding its regional infrastructure to secure this momentum. A recent example is the €40 million high-security data center in Spain, which will support FortiSASE and FortiCloud adoption in France, Germany, Portugal and surrounding markets.

The Zacks model points to continued momentum, projecting 2025 revenue growth of 13% for EMEA, alongside 12% for the Americas and 14% for APAC. This balanced expansion underscores the success of Fortinet’s international strategy. With EMEA emerging as a growth anchor and other regions maintaining resilience, the company’s geographic diversification is poised to support long-term revenue visibility and consistent performance.

FTNT’s Rivals Battle for Geographic Growth

Palo Alto Networks PANW generates about 67% of its revenues from the Americas, with EMEA accounting for 21% and APAC for 13% in the fiscal fourth quarter of 2025, showing a reliance on the United States but also demonstrating meaningful international traction. Unlike Fortinet’s more balanced exposure, PANW has room to expand in the APAC and Latin America regions. Its strengths include cloud- and AI-driven platforms (Prisma and Cortex), as well as strong global contracts and compliance expertise. PANW holds an edge over Fortinet in enterprise scale and subscription margins, although international growth faces regulatory and competitive hurdles.

Zscaler ZS generates 55% of revenues from the Americas, 29% from EMEA and 16% from APAC, reflecting a strong international presence. As a cloud-native, zero-trust SaaS provider, Zscaler scales faster across borders than Fortinet, with fewer logistical hurdles. Zscaler’s agility in cloud-first regions like EMEA and APAC, coupled with consistent 20-25% year-over-year growth, positions it as a formidable global competitor with superior scalability and adoption advantages.

FTNT’s Share Price Performance, Valuation & Estimates

Year to date, FTNT shares have declined 10.1%, underperforming both the Zacks Security industry’s 21.2% gain and the Zacks Computer and Technology sector’s 22.4% rise.

FTNT’s YTD Price Performance

From a valuation standpoint, Fortinet appears overvalued, trading at a forward 12-month price-to-sales ratio of 8.85, higher than the sector's average of 7.1. The company carries a Value Score of D.

FTNT’s Valuation

The consensus mark for 2025 earnings is pegged at $2.52 per share, which has increased by 1 cent over the last 30 days and by 4 cents over the last 60 days. The estimate indicates 6.33% 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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