Fortinet (FTNT) posted beats on the top and bottom-lines in Q3 but will face scrutiny on miss in its services business and cut to fiscal 2026 services guidance, Wedbush said in a note Thursday.
"While the product cycle remains strong, the services business,
which represents over 60% of total revenue, remains a question mark into future quarters," the report said.
"The company needs to show this reversal of decelerating
growth," the note added.
Services revenue came in at $1.31 billion, slightly below the Street's $1.33 billion estimate as new enterprise customers
and expansion deals ramped activations and consolidated service agreements, impacting the timing of services growth, it said.
The company lowered its 2026 services revenue guide to $5.15 billion to $5.17 billion while raising its billings, revenue, and margin guidance, the report said.
Wedbush kept its neutral rating and cut its price target to $140 from $155.
Price: 136.43, Change: -37.65, Percent Change: -21.63
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