Moody's Upgrades Fortinet Credit Rating to A3 on Strong Execution and Financials

Moody's Ratings has upgraded the senior unsecured notes rating for cybersecurity firm Fortinet, Inc. to A3 from Baa1, reflecting the company's consistent business execution and conservative financial management. The ratings agency also revised Fortinet's outlook to stable from positive.

Rationale for the Upgrade

The upgrade acknowledges Fortinet's solid history of organic innovation, revenue growth, and increasing profitability through various demand cycles and technology shifts, according to Moody's. The agency highlighted the company's strong positioning to benefit from the expanding cybersecurity market.

"Fortinet is strongly positioned to capitalize on the large and rapidly growing cybersecurity market opportunity, supported by its broad portfolio of secure networking, cloud security and security operations solutions," said Moody’s Ratings Senior Vice President Raj Joshi in the announcement. The A3 rating is further supported by Fortinet's leading position in the network firewall market and growth prospects in its Secure Access Service Edge (SASE) and security operations businesses.

Financial Health and Outlook

Ad

Fortinet maintains a very strong financial profile, which was a key factor in the ratings action. The company's financial position helps mitigate business risks related to its moderate operating scale and high revenue concentration in the more mature network firewall market.

Key financial metrics cited by Moody's as of the first quarter of 2026 include:

• Cash and investments: $3.3 billion
• Outstanding debt: $500 million
• Total debt to EBITDA (Moody's adjusted): 0.2x

Looking ahead, Moody's expects Fortinet's revenue to grow by 15% in 2026 and 10% in 2027, with stable operating margins. The agency also projects the company will generate approximately $2.8 billion of free cash flow over the next 12 months and achieve operating profit growth of more than 10% over the next 12 to 18 months.