Fortinet Shares Drop 22% Following Service Revenue Guidance Cut
Fortinet (FTNT) shares plummeted over 22% following its third-quarter earnings report, hitting a five-month low. Despite raising its full-year revenue and earnings forecasts and increasing its share buyback program by $1.2 billion, the stock faced heavy selling pressure due to concerns regarding its service segment. While product revenue grew 37% year-over-year, management issued a slight reduction in its full-year service revenue guidance. Because services represent the high-margin 'blade' of Fortinet's business model, investors are concerned that slowing service growth may signal a broader deceleration in enterprise spending or platform adoption.
Tickers: $FTNT
Topics: cybersecurity earnings report guidance revision revenue growth stock price drop