Jefferies has reiterated a Hold rating on Fortinet and left its price target unchanged at $80.00 as the cybersecurity vendor approaches its fourth-quarter earnings release scheduled for February 5. The firm’s view comes amid mixed signals from analysts and recent product updates from Fortinet.
Valuation and recent performance
Data from InvestingPro shows Fortinet’s shares trading at $81.51 at the time cited, and the company appears undervalued relative to InvestingPro’s calculated Fair Value. Jefferies highlights recent company performance, noting revenue growth of 14.78% over the trailing twelve months. The research house also points to a price-to-earnings ratio of 33.3 and gross profit margins of 80.87% as part of the valuation picture.
Near-term billings outlook
Jefferies expects Fortinet to exceed consensus billings growth estimates of 12% year-over-year by roughly 1-2%, a projection it says is supported by improved survey data. That anticipated outperformance is framed as consistent with Fortinet’s recent revenue trajectory.
Looking toward 2026
Despite that near-term positivity, Jefferies underscores that consensus forecasts for calendar year 2026 imply elevated expectations. The consensus numbers cited include 11% year-over-year billings growth, 13% year-over-year services revenue growth, and a 34% operating margin for 2026. Against that backdrop, Jefferies is adopting a cautious posture heading into the company’s quarterly results.
Market context and firm strategy
The research firm points to deteriorating sentiment in the software sector as an additional reason for restraint. While Jefferies anticipates that Fortinet’s setup could improve in coming quarters, it prefers to wait for clearer signals around a second-half 2026 product refresh and a rebound in services before taking a more constructive stance.
Recent analyst moves and product updates
Other brokerages have taken differing views in recent weeks. Rosenblatt Securities upgraded Fortinet’s rating to Buy from Neutral and raised its price target to $100.00, citing strong demand identified through channel checks with value-added resellers. TD Cowen likewise moved to a Buy rating, pointing to stable market conditions and potential upside to fourth-quarter 2025 billings and revenue estimates, which the note projects to rise 11.6% and 13.3% year-over-year, respectively. Cantor Fitzgerald retained its Neutral rating with an $87.00 price target, describing mixed market signals while acknowledging service improvements at Fortinet.
On the product front, Fortinet announced enhancements to its FortiCNAPP cloud security platform. The updated offering adds integrated risk analysis and now includes capabilities spanning network security posture, data security management, and runtime validation, designed to give organizations a more comprehensive assessment of their cloud environments.
Bottom line
Jefferies’ Hold reflects a balance between Fortinet’s recent growth and favorable margins on one hand, and elevated consensus expectations for 2026 and softening software-sector sentiment on the other. The firm signals openness to a more positive view if there is greater visibility into the timing and impact of a product refresh and a services rebound in the second half of 2026.