News about Fortinet

Fortinet and ServiceNow both beat revenue estimates after the close on October 28, 2026, yet their shares fell sharply: Fortinet dropped 25.71% after hours to $129.33 and ServiceNow fell 18.13% to $122.91, dragging many software and cybersecurity stocks lower. Fortinet's adjusted EPS of $0.91 beat the $0.86 consensus, but services revenue grew only 13% to $1.31 billion, prompting a cut to its full-year service revenue forecast and slowing total revenue growth to 20% from 26%. ServiceNow's revenue rose 20.5% to $4.106 billion, but adjusted EPS of $1.00 missed the $1.02 consensus, and its guidance for December-quarter cRPO growth of 18.5% was below the 21% in the September quarter. The article calls this the second major software selloff of 2026.

CrowdStrike (CRWD) trades at $262.31, up 124% this year, while Fortinet (FTNT) is up 142% at $192.49 and Palo Alto Networks (PANW) is up 118% at $401. The First Trust NASDAQ Cybersecurity ETF (CIBR) is up 52% at $107.98 and the Invesco QQQ Trust is up 21% at $745.75, well behind the leaders. On its August 26 call for fiscal Q2 2027, CrowdStrike reported record net new ARR of $333 million, up 51%, ending ARR of $5.84 billion, and revenue of $1.47 billion, up 26%, and it raised full-year net new ARR growth guidance to 34% at the midpoint. Skeptics note the stock has run far ahead of its sector fund and that a solid quarter could still disappoint if the price already reflects acceleration. Investors are watching whether the raised guidance holds next quarter and how management describes AI-driven demand.