Fortinet Plunges 18.45% on Revenue Outlook Miss

On August 7, 2025, Fortinet's stock experienced a significant drop of 18.45% in pre-market trading, reflecting investor concerns over the company's third-quarter revenue outlook.

Fortinet's shares plunged due to its third-quarter revenue outlook falling just short of market estimates. The company reported a non-GAAP EPS of $0.64, which exceeded expectations by $0.05, but the revenue of $1.63 billion was in line with estimates. This discrepancy between earnings and revenue outlook has led to a decline in investor confidence, resulting in the stock's sharp decline.

Fortinet's second-quarter financial results featured stronger-than-expected earnings, with a non-GAAP EPS of $0.64 beating estimates by $0.05. However, the company's third-quarter revenue outlook falling short of market expectations has overshadowed these positive results, leading to a significant drop in the stock price.

Fortinet's trailing EPS of $2.43 and a P/E Ratio of 39.74 indicate that the company's earnings are expected to grow by 13.88% next year, from $2.09 to $2.38 per share. Despite this positive outlook, the recent decline in the stock price highlights the market's sensitivity to short-term revenue expectations.