2Q26 Recap – On the Upswing

Research evidence excerpt

2Q26 Recap – On the Upswing

Update

July 30, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMFortinet Inc. | North America Meta A Marshall

Equity Analyst

2Q26 Recap – On the Upswing Meta.Marshall@morganstanley.comJonathan Eisenson +1 212 761-0430

Research Associate

What’s Changed Jonathan.Eisenson@morganstanley.com +1 212 761-2808

Lucas Cerisola

Fortinet Inc. (FTNT.O) From To Research Associate

Price Target $133.00 $136.00 Lucas.Cerisola@morganstanley.com +1 212 761-9194

Fortinet Inc. (FTNT.O, FTNT US)

AlphaSignals Earnings Reaction

Software | United States of America

Unchanged Meaningful upside Modest revision higher Stock Rating Equal-weight

Impact to our thesis Financial results versus consensus Direction of next 12-month Industry View Attractive

consensus EPS Price target $136.00

Source: Company data, Morgan Stanley Research Shr price, close (Jul 29, 2026) $153.22

Mkt cap, curr (mm) $98,347

52-Week Range $170.35-70.12

FTNT's Q2 results, and 52% Y/Y product growth, highlighted the

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

first step of investment we have seen across the board in AI, the EPS ($)** 2.76 3.44 3.69 3.98

need to address technical debt. Would like to see more software Prior EPS ($)** - 3.16 3.40 3.67

P/E 32.3 49.7 46.2 43.1

attach to get more positive, but results pointed to reason we EPS ($)§ 2.69 3.16 3.43 3.86

Div yld (%) - - - -

upgraded ahead of the quarter.

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates Key Takeaways

e = Morgan Stanley Research estimates

Q2 results beat expectations, strengthening from Q1, driven by 52% Y/Y product Quarterly EPS ($)

revenue growth, on the back of strong firewall / SASE demand.