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    Evaluating Fortinet (FTNT) After New Climb and TERAGO Partnerships Expand Its Security Reach

    Simply Wall St·12/08/2025 16:10:33
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    Fortinet (FTNT) is back in focus after striking fresh distribution and service partnerships with Climb and TERAGO, deals that quietly expand its sales reach and deepen recurring, service driven cybersecurity revenue.

    See our latest analysis for Fortinet.

    Those Climb and TERAGO deals land at a time when sentiment is trying to turn, with Fortinet’s share price at $86.92 and a strong recent upward swing offsetting a weaker year to date. Multi year total shareholder returns still look robust, suggesting longer term momentum is intact even if the near term picture remains a bit choppy.

    If Fortinet’s partnerships have you thinking more broadly about cybersecurity and digital infrastructure, it could be a good moment to explore high growth tech and AI stocks for other tech names with compelling growth stories.

    With shares only fractionally below analyst targets after a strong multi year run, the real question is whether Fortinet is quietly undervalued on its evolving service model, or if the market is already discounting that future growth.

    Most Popular Narrative Narrative: 12.2% Undervalued

    Fortinet’s narrative fair value of $99.03 stands noticeably above the last close at $86.92, setting up a valuation story built on profitability and disciplined growth.

    Fortinet is a model of profitability and operational efficiency. For its full fiscal year 2024, the company achieved a GAAP operating margin of 30.3% and a net profit margin of 29.3%. Its trailing-twelve-month (TTM) profit margin stands at an impressive 30.6%. This level of profitability is a direct result of its organic growth model, which avoids the heavy non-cash charges associated with large acquisitions.

    Read the complete narrative.

    Want to know how this narrative justifies a richer price tag? It leans on durable growth, expanding margins, and a future earnings multiple usually reserved for elite software franchises. Curious which specific profit and growth assumptions power that fair value? Read on to unpack the full playbook behind this valuation call.

    Result: Fair Value of $99.03 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, lingering concerns around Fortinet’s hardware dependence and past security vulnerabilities could quickly challenge the market’s confidence in its premium profitability story.

    Find out about the key risks to this Fortinet narrative.

    Build Your Own Fortinet Narrative

    If you see the numbers differently or want to stress test your own thesis, build a personalized Fortinet story in just minutes: Do it your way.

    A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Fortinet.

    Looking for more investment ideas?

    Do not stop with one great story. Use the Simply Wall Street Screener to uncover fresh, data driven opportunities that could reshape your portfolio’s next chapter.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.