RBC Capital on Friday increased its price target for Fortinet (NASDAQ:FTNT) to $90.00 from $85.00 but left its rating on the cybersecurity company unchanged. The move follows what RBC described as a quarterly performance that was "much better than feared," a show of strength the firm said should help underpin Fortinet's trajectory through the remainder of 2026.
Fortinet, with a market capitalization of $60.18 billion, currently trades at a price-to-earnings ratio of 33.29. According to InvestingPro data referenced in the note, that P/E is elevated when compared with near-term earnings growth expectations.
The company reported solid operating metrics over the past year. Gross profit margins remain high at 80.46%, and revenue rose 14.17% over the last twelve months, figures RBC flagged as evidence of Fortinet's continued business strength.
However, the report also noted a recurring shortfall in service revenue, which has underperformed for the fourth straight quarter. RBC said it expects service revenue to improve in the second half of 2026.
On product lines and end markets, RBC highlighted ongoing expansion across Fortinet's secure networking, unified SASE, and SecOps businesses. The analyst reiterated that the company should continue to outpace the market, pointing to what it called an "impressive rule of 45 or better."
RBC's decision to raise its price target reflects slightly higher revenue assumptions and a shift in valuation to a calendar year 2027 basis. The firm also noted it is looking ahead to Fortinet's Accelerate event in March as a potential catalyst for further investor insight.
Fortinet's most recent quarterly results provided additional context for the analyst reactions. The company reported fourth-quarter 2025 earnings per share of $0.81, above a consensus forecast of $0.74. Revenue for the quarter came in at $1.91 billion versus an expected $1.86 billion.
Other firms have adjusted their views or targets in response to Fortinet's results. TD Cowen reiterated a Buy rating and set a $100.00 price target, pointing to 20% product revenue growth and 18% billings growth for the period. UBS raised its price target to $90.00 from $80.00 while maintaining a Neutral rating, citing strong product growth and improved activity around Enterprise License Agreement renewals. Jefferies also increased its target to $90.00 from $80.00 and kept a Hold rating, noting an 18% year-over-year increase in billings that it said materially outpaced consensus expectations.
Collectively, these analyst moves underscore a pattern of upward target revisions and positive commentary on product and billings growth, even as some ratings remain Neutral or Hold. RBC's adjustments and the broader analyst response reflect an industry focus on Fortinet's ability to address investor concerns and sustain consistent performance across recent reporting periods.