Fortinet: Securing the AI Revolution

Fortinet Company Overview

Zacks Rank #1 (Strong Buy) company Fortinet (FTNT) is a cybersecurity leader, driving the convergence of networking and security. The Sunnyvale, CA-based company provides integrated security solutions to enterprises, service providers, and government entities across 100 countries. Through its products and subscription services, Fortinet provides protection against dynamic security threats while simplifying IT security infrastructure. Its solutions defend against multiple attack categories without impacting network performance, enabling customers to implement security policies on traffic between internal and external networks. Simply put, Fortinet protects organizations from digital threats, including hackers and computer viruses.

AI: A Massive Cybersecurity Catalyst

The current artificial intelligence buildout is unprecedented in terms of size and scope. In fact, a staggering 50% of Q1 2026 GDP growth can be attributed to massive CAPEX spending by big tech companies like Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT).

While the AI revolution has bolstered the economy and produced many winners in AI infrastructure and semiconductors, it also comes with its own set of problems. One of the least-discussed downsides of AI technology is that hackers and bad actors can weaponize it. In other words, as AI proliferates throughout the economy, so does the number of threats from automated, high-frequency vectors.

The increase in threats is a massive long-term catalyst for cybersecurity leaders like Fortinet. Below are three ways Fortinet fights AI-powered security threats:

·       Securing AI Data Centers: Fortinet’s technology helps to run AI applications that require extreme network speeds. Fortinet’s custom-built computer chips (ASICs) and partnership with AI leader NVIDIA (NVDA) give the company a competitive edge.

·       Fighting AI-Powered Attacks: FortiAI, Fortinet’s in-house machine learning engine, helps to stop the faster, smarter attacks that are synonymous with the latest AI technology.

·       Generative AI Assistant: FortiAI-Assist helps save customer time and streamline IT workloads by automating security alert investigations and troubleshooting network errors.

Fortinet: Steady, Reliable Earnings Growth

Fortinet’s success securing large enterprise contracts through the first quarter of 2026 demonstrates strong market validation and creates predictable revenue streams. The company reported that deals of $1 million or more have increased by 60%. For this reason, it is no surprise that the company has consistently grown its top-and bottom-line financials for years. Zacks Consensus Estimates suggest that revenues will in the double-digits through 2027.

Image Source: Zacks Investment Research

Meanwhile, Fortinet consistently beats Wall Street expectations. Over the past four quarters, the company has delivered an average EPS surprise of 17.46%.

Image Source: Zacks Investment Research

FTNT: Powerful Price Action & a Bullish Chart

FTNT shares have exhibited extreme power. Year-to-date, FTNT is  up 91.2% while the S&P 500 Index is  up 7.8%.

Image Source: Zacks Investment Research

Additionally, while the Nasdaq 100 Index ETF (QQQ) is nearly in correction territory and is well below its 10-week moving average, FTNT is finding support there. The first retreat to the moving average after a blistering move higher presents investors with an attractive reward-to-risk profile.

Image Source: TradingView

Bottom Line

As the age of artificial intelligence takes the world by storm, Fortinet’s cybersecurity solutions are in high demand. With expanding enterprise contracts and consistent earnings performance, FTNT remains a standout leader in its industry.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Source Zacks-com