New York, Feb 6, 2026, 07:00 EST — Premarket
- Fortinet shares were up in premarket trading following quarterly results that beat forecasts.
- Traders are focusing on billings to gauge demand in cybersecurity spending.
- Wall Street is balancing upbeat guidance with ongoing doubts about the strength of services momentum.
Fortinet, Inc (FTNT) shares jumped 2.8% to $81.11 in premarket trading Friday, following a quarterly beat and stronger guidance, despite recent weakness in tech stocks. The cybersecurity company posted adjusted earnings of 81 cents per share and revenue of $1.91 billion, with billings rising to $2.37 billion. It also forecast first-quarter earnings between 59 and 63 cents per share. 1
The report matters because security software is expected to be the “must-have” budget item when funds tighten — and investors have been putting that belief to the test. A strong beat on billings can quickly ease concerns. A stumble, however, can ripple through the sector.
Fortinet started its earnings report under pressure, slipping 2.7% Thursday to settle at $78.93. Trading volume surged, more than twice the usual average, even as competitors made bigger moves. 2
Billings don’t equal revenue. They track the value of signed contracts and are closely watched in cybersecurity as an early indicator of upcoming growth, even before it appears in reported sales.
Fortinet’s earnings came in strong, sending its shares up over 4% in after-hours to roughly $82.25. Yet the report also highlighted a weak spot: service revenue, the more predictable subscription and support segment, has once again fallen short. 3
Investors seek consistency in that service line. It usually evens out the more volatile hardware cycle and often delivers higher margins. When it falters, questions arise about whether deal quality is slipping or if renewals are becoming more challenging.
Initial analyst response to the billings report was upbeat. Jefferies lifted its price target to $90 from $80 but maintained a Hold rating, citing better-than-anticipated billings and product momentum. The firm did caution, however, that the 2026 services forecast might remain challenging. 4
But there’s a snag. Fortinet’s first-quarter earnings forecast falls short of some Wall Street estimates, and a volatile tech sector could overshadow strong company results once regular trading kicks off.
Competition remains unpredictable. Major rivals continue to pile into the “single platform” approach — combining firewalls, cloud controls, and remote-access security — and prices can shift fast when clients come up for renewal.
Fortinet handed investors more flexibility with cash, announcing its board approved a $1.0 billion boost to the share repurchase program, pushing the total authorization up to $10.25 billion through Feb. 28, 2027. As of Feb. 4, roughly $1.38 billion remained unused. CEO Ken Xie highlighted that the quarter “drove billings above the high end of our guidance.” Traders will be watching management’s upcoming appearances at the Bernstein TMT Forum on Feb. 26 and the Morgan Stanley Technology, Media & Telecom Conference on March 3 for any updates on service momentum. 5
