-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price to $119, from $92, on a forward P/E of 35x our 2027 EPS projection of $3.40, below its three-year average. We increase our 2026 EPS projection to $3.13 from $2.96 and our 2027 EPS forecast to $3.40 from $3.28. FTNT reported remarkable Q1 results with revenue surging 20% Y/Y to $1.85B, fueled by product revenue growth of 40.5% to $645M and service revenue growth of 11% to $1.21B. Billings accelerated 31% to $2.09B, with secure networking billings up 32%. While we note Product outperformance and a raised guide, we are wary that strength in the Product segment may reflect pulled-forward demand as customers address memory constraints. We therefore see the risk that growth at these levels may not sustain into H2 2026. Non-GAAP operating margin hit a Q1 record of 35.8%, up 160 bps Y/Y, while management maintained gross margin guidance of 79%-81% and operating margin guidance of 33%-36%. Free cash flow reached a record $1.01B.