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FTNT, Fortinet Inc.

Fortinet is a leader in cybersecurity, driving the convergence of networking and security.

Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge ("SASE") and artificial intelligence ("AI")-driven security operations ("SecOps").

As of December 31, 2025, our end-customers were located in over 100 countries and included enterprises across a wide variety of market verticals, including financial services, retail, healthcare and operational technology ("OT") market verticals, communication and security service providers, and government organizations.

Latest annual: FY2025 10-K

FTNT · Fortinet Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$6.8B

+14.2% YoY · 21% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $7.1B 5-yr avg $5.2B

Gross margin 80% 5-yr avg 78%

Operating margin 31.1% 5-yr avg 25.1%

Owner-earnings margin 37% 5-yr avg 37%

Free cash flow margin 34% 5-yr avg 33%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Security subscription (39%), Products (33%) and Technical support and other (29%).
What moves the needle: Gross margin has run about 77% and operating margin about 20% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from 7.3% to 31% — on a steadier 77% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Stock-based pay runs about 6.2% of sales, a real and recurring claim on owners that the GAAP margin understates. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 3 lines, the largest Security subscription at 39%.

Revenue by product line, FY2025

Security subscription39%$2.6B
Products33%$2.2B
Technical support and other29%$1.9B

By geographyEMEA42%United States28%APAC19%Other Americas11%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2025

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
										Income statement
$1.5B	$1.8B	$2.2B	$2.6B	$3.3B	$4.4B	$5.3B	$6.0B	$6.8B	$7.1B	RevenueRevenue
74%	75%	77%	78%	77%	75%	77%	81%	80%	80%	Gross marginGross mgn
6%	5%	5%	5%	4%	4%	4%	4%	3%	3%	SG&A / revenueSG&A/rev
14%	14%	13%	13%	13%	12%	12%	12%	12%	12%	R&D / revenueR&D/rev
$110M	$234M	$351M	$532M	$650M	$970M	$1.2B	$1.8B	$2.1B	$2.2B	Operating incomeOp. inc.
7.3%	13.0%	16.2%	20.5%	19.5%	21.9%	23.4%	30.3%	30.7%	31.1%	Operating marginOp. mgn
$31M	$335M	$332M	$489M	$607M	$857M	$1.1B	$1.7B	$1.9B	$2.0B	Net incomeNet inc.
—	—	14%	10%	2%	3%	11%	14%	19%	19%	Effective tax rateTax rate
										Cash flow & returns
$594M	$639M	$808M	$1.1B	$1.5B	$1.7B	$1.9B	$2.3B	$2.6B	$2.8B	Operating cash flowOp. cash
$56M	$56M	$62M	$69M	$84M	$104M	$113M	$123M	$152M	$156M	DepreciationDeprec.
$370M	$85M	$241M	$335M	$601M	$552M	$425M	$132M	$306M	$408M	Working capital & otherWC & other
$135M	$53M	$92M	$126M	$296M	$281M	$204M	$379M	$365M	$369M	CapexCapex
9.1%	2.9%	4.3%	4.9%	8.9%	6.4%	3.8%	6.4%	5.4%	5.2%	Capex / revenueCapex/rev
$539M	$586M	$746M	$1.0B	$1.4B	$1.6B	$1.8B	$2.1B	$2.4B	$2.6B	Owner earningsOwner earn.
36.0%	32.5%	34.5%	39.1%	42.3%	36.8%	34.3%	35.9%	35.9%	37.3%	Owner earnings marginOE mgn
$459M	$586M	$716M	$958M	$1.2B	$1.4B	$1.7B	$1.9B	$2.2B	$2.4B	Free cash flowFCF
30.7%	32.5%	33.1%	36.9%	36.0%	32.8%	32.6%	31.6%	32.7%	34.3%	Free cash flow marginFCF mgn
$0	$22M	$35M	$40M	$75M	$31M	$0	$276M	$42M	$30M	AcquisitionsAcquis.
$446M	$212M	$145M	$1.1B	$742M	$2.0B	$1.5B	$600K	$2.3B	—	BuybacksBuybacks
5%	33%	25%	57%	78%	—	—	117%	150%	197%	Return on equityROE
5%	33%	25%	57%	78%	—	—	117%	150%	197%	Retained to equityRetained/eq
										Balance sheet
$1.3B	$1.6B	$2.1B	$1.8B	$2.5B	$2.2B	$2.4B	$4.1B	$3.6B	$3.6B	Cash & investmentsCash+inv
$348M	$445M	$544M	$720M	$808M	$1.3B	$1.4B	$1.5B	$1.7B	$1.5B	ReceivablesReceiv.
$77M	$90M	$118M	$140M	$176M	$265M	$485M	$316M	$400M	$370M	InventoryInvent.
$70M	$86M	$96M	$142M	$148M	$243M	$204M	$191M	$231M	$239M	Accounts payablePayables
$356M	$448M	$566M	$718M	$835M	$1.3B	$1.7B	$1.6B	$1.9B	$1.6B	Operating working capitalOper. WC
$1.7B	$2.2B	$2.8B	$2.7B	$3.6B	$3.8B	$4.4B	$6.0B	$5.9B	$5.3B	Current assetsCur. assets
$1.0B	$1.3B	$1.5B	$1.8B	$2.3B	$3.1B	$3.7B	$4.1B	$5.0B	$4.6B	Current liabilitiesCur. liab.
1.7×	1.8×	1.9×	1.5×	1.6×	1.2×	1.2×	1.5×	1.2×	1.2×	Current ratioCurr. ratio
$15M	$38M	$67M	$93M	$125M	$128M	$127M	$235M	$257M	$257M	GoodwillGoodwill
$2.3B	$3.1B	$3.9B	$4.0B	$5.9B	$6.2B	$7.3B	$9.8B	$10.4B	$9.9B	Total assetsAssets
—	—	—	$0	$988M	$990M	$992M	$994M	$996M	$497M	Total debtDebt
—	—	—	($1.8B)	($1.5B)	($1.2B)	($1.4B)	($3.1B)	($2.6B)	($3.1B)	Net debt / (cash)Net debt
—	—	—	—	43.7×	53.9×	59.1×	90.2×	103.7×	114.0×	Interest coverageInt. cov.
$602M	$1.0B	$1.3B	$856M	$782M	($282M)	($463M)	$1.5B	$1.2B	$990M	Shareholders’ equityEquity
9.2%	9.0%	8.0%	7.4%	6.2%	4.9%	4.7%	4.3%	4.1%	4.0%	Stock comp / revenueSBC/rev
										Per share
891M	871M	875M	838M	835M	805M	788M	772M	765M	743M	Shares out (diluted)Shares
$1.68	$2.07	$2.47	$3.09	$4.00	$5.49	$6.73	$7.72	$8.89	$9.57	Revenue / shareRev/sh
$0.04	$0.38	$0.38	$0.58	$0.73	$1.06	$1.46	$2.26	$2.42	$2.63	EPS (diluted)EPS
$0.61	$0.67	$0.85	$1.21	$1.69	$2.02	$2.31	$2.77	$3.19	$3.57	Owner earnings / shareOE/sh
$0.52	$0.67	$0.82	$1.14	$1.44	$1.80	$2.20	$2.43	$2.91	$3.28	Free cash flow / shareFCF/sh
$0.15	$0.06	$0.11	$0.15	$0.35	$0.35	$0.26	$0.49	$0.48	$0.50	Cap. spending / shareCapex/sh
$0.68	$1.18	$1.53	$1.02	$0.94	$-0.35	$-0.59	$1.94	$1.62	$1.33	Book value / shareBVPS

Share counts before 2020 are restated ×5 for a stock split, so per-share figures sit on one basis.

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+23.2%/yr	+23.5%/yr
Owner earnings / share	+23.1%/yr	+21.4%/yr
EPS	+69.7%/yr	+33.0%/yr
Capital spending / share	+15.4%/yr	+26.0%/yr
Book value / share	+11.5%/yr	+9.6%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue+14.2%
“Sales and marketing Sales and marketing expenses increased $302.7 million, or 15%, in 2025 compared to 2024, primarily due to an increase of $226.4 million in personnel-related costs.”
✓ figure matches the filed record
Security subscription+13.7%
“Security subscription revenue increased $316.5 million, or 14%, and technical support and other services revenue increased $217.6 million, or 13%, in 2025 compared to 2024. The increase was primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions delivered to on-premise and cloud-based environments and growth in SaaS solutions, including unified SASE and SecOps.”
✓ figure matches the filed record

The record, charted

FY2017–2025

Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.

Share count

765Mpeak FY2017

Gross margin

80%low FY2017

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$2.4Bowner earningsvs.$1.9Bnet incomelow FY2017

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2017FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $2.4B of owner earnings, the operating cash left after the $152M it takes just to hold its position. It put $213M more into growth; free cash flow, after that spending, was $2.2B.

Reported net income$1.9B

Owner earnings$2.4B · 36% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$1.9B	$1.7B	$1.1B	$857M	$607M
Depreciation & amortizationnon-cash charge added back	+$152M	+$123M	+$113M	+$104M	+$84M
Stock-based compensationreal costnon-cash, but a real cost	+$280M	+$258M	+$249M	+$217M	+$208M
Working capital & othertiming of cash in and out, other non-cash items	+$306M	+$132M	+$425M	+$552M	+$601M
Cash from operations	$2.6B	$2.3B	$1.9B	$1.7B	$1.5B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$152M	−$123M	−$113M	−$104M	−$84M
Owner earnings	$2.4B	$2.1B	$1.8B	$1.6B	$1.4B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$213M	−$256M	−$91M	−$177M	−$212M
Free cash flow	$2.2B	$1.9B	$1.7B	$1.4B	$1.2B
Owner-earnings marginowner earnings ÷ revenue	36%	36%	34%	37%	42%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $152M, roughly its depreciation, the rate its assets wear out). The other $213M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $280M), owner earnings is nearer $2.2B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 103.7×

Comfortable

Operating income $2.1B ÷ interest expense $20M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$2.6B

Net cash

Cash $2.5B + ST investments $1.1B − debt $996M

What this means
Cash and short-term investments exceed every dollar of debt by $2.6B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 137d

Long (60+ days)

DSO 91 + DIO 110 − DPO 63 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not meaningful here

Invested capital ($262M) = debt $996M + equity $1.2B − cash

Industry peers: median 9%

What this means
Invested capital is near zero or negative, usually years of buybacks pulling equity down. ROIC explodes or flips sign and stops meaning anything. Judge this one on Owner Earnings instead.
Owner-earnings margin 36%

High through the cycle

9-yr median margin, range 32%–42%; latest $2.4B = operating cash $2.6B − maintenance capex $152M

Industry peers: median 12%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 36% of revenue this year, a 36% median across 9 years. Treating stock comp as the real expense it is (less $280M of SBC) leaves $2.2B.
Are earnings backed by cash? 1.40×

Cash-backed

Cash from ops $2.6B ÷ net income $1.9B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 94%

Returns most of it

Dividends + buybacks $2.3B ÷ Owner Earnings $2.4B

What this means
Of $2.4B Owner Earnings, $2.3B (94%) went back to shareholders, $0 dividends, $2.3B buybacks. Net of $280M stock comp, the real buyback was about $2.0B. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 2.40×

Expanding

Capex $365M ÷ depreciation $152M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $6.8B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.17×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Near

Debt ≤ working capital · $996M vs $866M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (9-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +580%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.16/share (latest year $2.53), the averaged base the calculator's gate runs on, and book value is $1.69/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 9

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Operating margin 12% → 28% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about 12% early to 28% lately, median 20% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +19%/yr

What this means
Owner earnings grew about 19% a year over the record.
Worst year 2017 · 7.3% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Increased competition from other companies implementing AI more effectively or rapidly could impact customer preferences and reduce demand for our products or services.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$5.3B

Cash & short-term investments$3.3B
Receivables$1.5B
Inventory$370M
Other current assets$182M

Current liabilities$4.6B

Accounts payable$239M
Other current liabilities$4.4B

Current ratio1.15×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.07×stricter: inventory excluded

Cash ratio0.71×strictest: cash alone against what's due

Working capital$709Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+20.1%the freshest read on whether the business is still growing

Current ratio, recent quarters1.3× → 1.2×

Deeper floors

Tangible book value$645Mequity stripped of goodwill & intangibles

Net current asset value($3.6B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$562M$66M of it operating leases

Deferred revenue$7.4Bcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2017–2025

Over the record, the business generated $13.1B of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$1.9B · 15%
Buybacks$8.4B · 64%
Retained (debt / cash)$2.8B · 21%

Returned to owners$8.4B
68% of the owner earnings the business produced over the span, $0 as dividends and $8.4B as buybacks.
Average price paid for buybacks—
Buybacks ran $8.4B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−16.6%
The diluted count fell from 891M to 743M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Ken Xie	$14.2M	$84.7M	$1.4B
2022	Ken Xie	$14.2M	−$15.2M	$1.6B
2023	Ken Xie	$16.3M	$21.5M	$1.8B
2024	Ken Xie	$13.1M	$37.7M	$2.1B
2025	Ken Xie	$11.5M	$1.1M	$2.4B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Stock-based compensation$280M
The slice of the business handed to employees in shares this year, 4% of revenue, equal to 13% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Fortinet Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2025.

None of the 4 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did reported profit become cash?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Inventory, Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Technology Hardware

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
PANWPalo Alto Networks Inc.	$9.2B	72%	-4.0%	-10%	38%
STXSeagate Technology Holdings PLC	$9.1B	28%	13.2%	29%	11%
SNDKSandisk Corporation	$7.4B	16%	-18.7%	-11%	-7%
XRXXerox Holdings Corporation	$7.0B	—	-0.4%	-2%	8%
NTAPNetApp Inc.	$6.9B	67%	18.8%	70%	20%
FTNTFortinet Inc.	$6.8B	77%	20.5%	—	36%
JNPRJuniper Networks	$5.1B	59%	9.8%	9%	13%
LOGILogitech International S.A.	$4.8B	71%	11.9%	63%	12%
Group median	—	67%	10.8%	—	13%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Fortinet Inc. has delivered.

Today’s price $

Through the cycle, Fortinet Inc. earns about $2.4B on its 35.9% median owner-earnings margin. This year’s 35.9% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($2.4B) Net of stock comp (−$286M) Steady-state · maintenance capex ($2.7B)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+11%/yr

Owner-earnings growth · ’17→’25+19%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $2.4B on 733M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $3.1B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($369M) runs well above depreciation ($156M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $2.7B, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh FTNT against another business →

The owners of FTNT: the meeting and the votes →

Cite: Owner Scorecard, "Fortinet Inc. (FTNT), the owner's record," https://ownerscorecard.com/c/FTNT, data as of 2026-07-09.

Manual order: ← FTK its page in the Manual FTRE →

Industry order: ← EVLV the Technology Hardware chapter HPE →