Fortinet Stock Plunges 18.21% on Soft Q3 Outlook

On August 7, 2025, Fortinet's stock experienced a significant drop of 18.21% in pre-market trading, reflecting investor concerns over the company's financial 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 beat estimates by $0.05, but the revenue of $1.63 billion was in line with expectations. This discrepancy between earnings and revenue outlook has raised concerns among investors about the company's future performance.

Fortinet's second-quarter financial results, while featuring stronger-than-expected earnings, did not fully satisfy market expectations. The company's trailing EPS of $2.43 and a P/E ratio of 39.74 indicate a growth expectation of 13.88% for the next year, from $2.09 to $2.38 per share. However, the soft Q2 outlook has contributed to the recent decline in stock price.