Fortinet, Inc.
Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. The company offers FortiOS, a unified operating system designed to address cybersecurity threats; FortiASIC application-specific integrated circuit (ASIC)-based security processing units; FortiCloud, a private cloud software as a service platform; FortiAI, which provides a dual-layered defense across the Fortinet Security Fabric; FortiEndpoint, which converges secure connectivity, endpoint protection, and capabilities into a single agent; and OT Security, which protect the engineered systems that underpin infrastructure and supply chains. It also provides secure networking solutions that focus on the convergence of networking and security; network firewall solutions comprising FortiGate data centers, hyperscale, and distributed firewalls; wireless local area network solutions; and secure connectivity solutions. In addition, the company offers the Fortinet Unified Secure Access Service Edge solutions that include firewall, software-defined wide-area network, secure web gateway, cloud access services broker, data loss prevention, and zero trust network access; and web application firewalls, cloud network security with virtualized firewalls, cloud-native firewalls, cloud-native application protection, and code security. Further, it provides AI-driven security operation solutions, which include a suite of cybersecurity solutions, as well as FortiEDR, FortiXDR, FortiNDR, FortiSandbox, FortiDeceptor, FortiDLP, and FortiRecon. Additionally, the company offers FortiGuard Labs, a cybersecurity threat intelligence and research organization; FortiGuard and Other Security Services, a suite of AI-powered security capabilities that consists of FortiGuard application, content, device, NOC/SOC, and web security services; and FortiCare technical support services. Fortinet, Inc. was incorporated in 2000 and is headquartered in Sunnyvale, California.
What does it do?
Fortinet makes the digital locks and alarm systems that protect businesses from hackers. Think of it like a security company, but instead of guarding a physical building, they protect computer networks, data centers, and cloud systems from cyberattacks. Their flagship product, the FortiGate firewall, sits at the edge of a company's network and inspects every piece of data coming in or going out — blocking anything suspicious. Customers range from small businesses to governments and some of the largest companies in the world.
Cyberattacks are growing faster than most companies can handle — ransomware, data breaches, and state-sponsored hacking have made cybersecurity spending non-negotiable for businesses of all sizes. Fortinet sits at the center of a market that doesn't shrink in recessions because getting hacked is often more expensive than the security itself. With AI now being used by both attackers and defenders, companies like Fortinet that can bake AI into their security tools are becoming even more strategically important.
How does it make money?
Fortinet makes money in two main ways: selling hardware (their physical firewall boxes) and selling software subscriptions and support contracts on top of that hardware. In their latest financial year, they generated $6.8 billion in total revenue, up from $6.0 billion the prior year — that's roughly 13% growth. The software and services side (which includes cloud subscriptions and ongoing support) is the faster-growing and more profitable part of the business, since customers pay year after year. Net income hit $1.9 billion, showing this is a highly profitable operation, not just a fast-growing one.
Why do investors care?
Investors like Fortinet because it combines growth with profitability — a rare combo in tech. The big growth story is the shift from companies buying one-off security products to adopting a single, unified security platform, which Fortinet calls its 'Security Fabric.' If companies choose Fortinet as their one-stop security vendor, they become deeply embedded and hard to replace. For this thesis to work, Fortinet needs to keep winning large enterprise deals, continue converting hardware customers into recurring software subscribers, and fend off well-funded rivals like Palo Alto Networks and CrowdStrike.
Deep Dive
MemberA full investor briefing on Fortinet, Inc. — history, leadership, risks, and outlook.