Fortinet Inc. (NASDAQ:FTNT) shares are trading lower Thursday after the company reported first-quarter 2025 financial results.

What To Know: While adjusted earnings of 58 cents per share came in above the 53-cent consensus estimate, revenue of $1.54 billion was just in line with analyst expectations, according to Benzinga Pro.

Slightly soft guidance at the midpoint appears to be weighing on shares. Fortinet guided for second-quarter revenue of $1.59 billion to $1.65 billion, or $1.62 billion at the midpoint, versus estimates of $1.63 billion. The company also reaffirmed full-year guidance of $6.65 billion to $6.85 billion versus estimates of $6.76 billion.

Fortinet guided for second-quarter adjusted earnings of 58 cents to 60 cents per share, versus estimates of 58 cents per share, and raised its full-year earnings forecast to $2.43 to $2.49 per share versus estimates of $2.47 per share.

Product revenue increased 12.3% year-over-year to $459.1 million and service revenue rose 14.4% to $1.08 billion. Total billings reached $1.6 billion, representing a 13.5% increase from the year-ago period, while remaining performance obligations climbed 11.7% to $6.49 billion.

“We continue to accelerate our growth strategy by investing in the rapidly expanding Unified SASE and Security Operations markets, while strengthening our leadership in Secure Networking,” said Ken Xie, founder, chairman and CEO of Fortinet.

“Leveraging our deep expertise in networking and security convergence, a strong track record of AI-driven innovation, and seamless product development and integration through our FortiOS operating system, we have established ourselves as the leader in organic innovation and will continue setting the industry standard in cybersecurity.”

Several analysts also lowered price targets on Thursday, which is adding to the weakness in shares.

• Baird analyst Shrenik Kothari maintained a Neutral rating and lowered the price target from $113 to $108.

• Stifel analyst Adam Borg maintained a Hold rating and lowered the price target from $115 to $95.

• Wells Fargo analyst Andrew Nowinski maintained an Equal-Weight rating and lowered the price target from $105 to $95.

• Scotiabank analyst Patrick Colville maintained a Sector Outperform rating and lowered the price target from $135 to $115.

• Keybanc analyst Eric Heath maintained an Overweight rating and lowered the price target from $120 to $115.

FTNT Price Action: Fortinet shares were down 8.43% at $97.72 at the time of writing, according to Benzinga Pro.

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