Fortinet vs Zscaler

Fortinet and Zscaler: this page compares business models, financial performance, and market context to help readers understand how the two companies approach security, growth, and competitive positioning. The content is neutral and accessible, focusing on structure, strategy, and market factors rather than recommendations. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

FTNT

Metric

$61.77B

Market Cap

$34.21B

5.61%

Potential Profit

48.29%

Hold

Analyst Rating

Buy

Why It's Moving

Fortinet Stock Surges 5% as TD Cowen Upgrades to Buy with $100 Target Amid Cybersecurity Momentum.

TD Cowen highlighted Fortinet's valuation stability through fiscal 2026, maintaining a $100 price target that underscores potential for revenue acceleration.
Stock became a top Nasdaq and S&P 500 mover, with prices climbing from $75.55 to $81.50, reflecting robust buying interest and higher highs.
Upcoming earnings on February 5 expected to show EPS of $0.74 and $1.86B revenue, up 11.91% year-over-year, fueling optimism for profitability.

Sentiment:

🐃Bullish

Zscaler Climbs Modestly Amid Anticipation for Upcoming Earnings Beat

Analysts forecast Q2 EPS of $0.89, a 14.1% year-over-year jump, and revenue of $798 million, up 23.17%, highlighting accelerating demand for cloud-native cybersecurity.
Recent analyst updates lean bullish, with multiple buy ratings and price targets up to $290 from firms like BMO Capital and Rosenblatt, reflecting optimism on business momentum.
Despite a premium Forward P/E of 54.34 versus the industry average, Zscaler's PEG ratio of 2.98 supports its growth trajectory amid sector tailwinds.

Sentiment:

🐃Bullish

Fortinet Stock Surges 5% as TD Cowen Upgrades to Buy with $100 Target Amid Cybersecurity Momentum.

TD Cowen highlighted Fortinet's valuation stability through fiscal 2026, maintaining a $100 price target that underscores potential for revenue acceleration.
Stock became a top Nasdaq and S&P 500 mover, with prices climbing from $75.55 to $81.50, reflecting robust buying interest and higher highs.
Upcoming earnings on February 5 expected to show EPS of $0.74 and $1.86B revenue, up 11.91% year-over-year, fueling optimism for profitability.

Sentiment:

🐃Bullish

Zscaler Climbs Modestly Amid Anticipation for Upcoming Earnings Beat

Analysts forecast Q2 EPS of $0.89, a 14.1% year-over-year jump, and revenue of $798 million, up 23.17%, highlighting accelerating demand for cloud-native cybersecurity.
Recent analyst updates lean bullish, with multiple buy ratings and price targets up to $290 from firms like BMO Capital and Rosenblatt, reflecting optimism on business momentum.
Despite a premium Forward P/E of 54.34 versus the industry average, Zscaler's PEG ratio of 2.98 supports its growth trajectory amid sector tailwinds.

Sentiment:

🐃Bullish

Investment Analysis

Fortinet

FTNT

Pros

Fortinet offers a broad range of endpoint security services across on-premises, cloud, and IoT devices, positioning it well in diverse cybersecurity markets.
The company's stock rose 26% over the past year, outperforming Zscaler and indicating investor confidence and relative stability.
Fortinet has a solid financial profile with a P/E ratio around 31 and healthier valuation multiples than Zscaler, suggesting more balanced investor expectations.

Considerations

Fortinet faces stiff competition from cloud-native cybersecurity providers like Zscaler, which may pressure growth in some segments.
The company's exposure to cyclical IT spending and macroeconomic uncertainties could impact future revenue momentum.
Fortinet’s growth rate and innovation pace may lag behind rapidly scaling, more specialized cloud firms, limiting its upside.

Zscaler

Pros

Zscaler has demonstrated strong revenue growth, with 23% annual increases and significant billings growth, signalling robust demand for its zero-trust cloud-native security.
Its positioning as a leader in cloud-native SASE solutions underpins a strong competitive moat in fast-growing cybersecurity niches.
The company’s expanding margins and improving free cash flow forecast potential profitability improvements, enhancing long-term financial health.

Considerations

Zscaler trades at a very high valuation with a forward P/E near 76 and price-to-sales ratio around 16, implying elevated investor expectations and valuation risk.
Its stock exhibits higher volatility compared to Fortinet, indicating potentially greater risk for investors.
Despite growth, recent stock performance has been mixed with some declines and forecasts suggesting possible short-term price corrections.

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