Jefferies Sees Modest Q4 Beat for Fortinet (FTNT), Remains Cautious on 2026

Fortinet, Inc. (NASDAQ:FTNT) is one of the 10 AI Stocks Analysts Are Watching. On January 30, Jefferies analyst Joseph Gallo reiterated a Hold rating on the stock with an $80.00 price target. The firm anticipates a modest Q4 beat but will wait for clearer visibility into 2H26 momentum.

The cybersecurity company is scheduled to report its fourth-quarter earnings on February 5. The research firm forecasts Fortinet to exceed consensus billings growth estimates of 12% year-over-year by an estimated 1-2%, driven by improved survey data.

However, Jefferies has flagged several 2026 metrics imply a high expectations, including consensus expectations for billings growth, services revenue growth, and operating margins.

Since the current sentiment toward software stocks is weak, the firm remains cautious heading into the print and waits to be constructive until there is visibility for a potential product refresh and services rebound in the second half of 2026.

“We expect FTNT to beat 4Q cons 12% YoY billings by 1–2%, supported by improved survey. Our convos indicate appetite to eventually own shares but several CY26 metrics imply high opening guide bars (11% YoY cons ’26 billings, 13% YoY services rev & 34% OPM). Given deteriorating software sentiment, we remain cautious into the print but expect set-up to improve in future Qs & wait to be constructive till there’s visibility for 2H26 prod refresh/services rebound.”

Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.

While we acknowledge the potential of FTNT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.