Shares of Fortinet (NASDAQ: FTNT) plunged 19.41% in pre-market trading on Thursday following the cybersecurity firm's second-quarter earnings report. Despite beating expectations for Q2, Fortinet's weaker-than-anticipated guidance for the third quarter sparked a sharp sell-off.

For the second quarter, Fortinet reported adjusted earnings per share of $0.64, surpassing the analyst consensus estimate of $0.59. Revenue came in at $1.63 billion, slightly above the expected $1.624 billion. The company's billings, a key metric for future revenue, grew 15% year-over-year to $1.78 billion.

However, investors focused on Fortinet's third-quarter outlook, which fell short of expectations. The company forecasts third-quarter revenue between $1.67 billion and $1.73 billion, with the midpoint below the analyst consensus of $1.71 billion. This guidance suggests potential challenges in maintaining its recent growth trajectory amid an increasingly competitive cybersecurity landscape.

Following the earnings report, several analysts cut their price targets for Fortinet. JP Morgan lowered its target to $87 from $105, while Piper Sandler downgraded the stock to Neutral from Overweight and reduced its price target to $90 from $135. These downgrades further contributed to the stock's pre-market decline.

Despite the disappointing Q3 guidance, Fortinet raised its full-year 2025 billings guidance midpoint by $100 million, indicating confidence in its long-term prospects. The company also highlighted its leadership in network security and recent expansion of FortiCloud services. However, these positive factors were overshadowed by concerns about slowing growth and increased competition in the cybersecurity market.