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# Fortinet Stock Plunges 22%, Wiping Out $28 Billion, After Services Revenue Forecast Cut
- URL: https://www.bullished.co/fortinet-stock-plunges-22-wiping-out-28-billion-after-services-revenue-forecast-cut-9a74336e/
- Published: 2026-10-29T13:53:51.000Z
- Updated: 2026-10-29T13:53:51.000Z
- Description: The cybersecurity vendor trimmed its services outlook a day after strong results, and BofA downgraded the shares to Neutral.
- Author: Matteo Parrino
- Tags: Markets, FTNT, Industry: Technology

[Fortinet](https://www.bullished.co/tag/ftnt/) shares [plunged 21.63% to $136.42](https://finance.yahoo.com/markets/stocks/article/fortinet-drags-down-cybersecurity-stocks-as-the-companys-service-revenue-forecast-misses-estimates-124146969.html?ref=bullished.co) in Thursday trading, as of 9:52 a.m. ET, erasing $28 billion in market value. The sell-off came the session after the company trimmed its 2026 services revenue forecast, even as it raised its billings outlook.

## A services cut inside a strong report

Fortinet, which sells cybersecurity products combining networking and security through its Security Fabric platform, said on Wednesday it [raised its billings outlook](https://www.sec.gov/Archives/edgar/data/0001262039/000126203926000024/ftnt-20261028.htm?ref=bullished.co) for a third time. Firewall sales rose 37%, and it added $1.2 billion to its buyback authorization.

Third-quarter free cash flow was [$865 million](https://www.benzinga.com/trading-ideas/movers/26/10/62690238/why-is-fortinet-stock-falling-thursday?ref=bullished.co), up 52% from a year earlier. Within the same update, Fortinet lowered its 2026 services revenue outlook to $5.15 billion–$5.17 billion, from $5.18 billion–$5.22 billion.

The cut pulled peers down: CrowdStrike, Okta and Palo Alto Networks [each fell more than 6%](https://finance.yahoo.com/markets/stocks/article/fortinet-drags-down-cybersecurity-stocks-as-the-companys-service-revenue-forecast-misses-estimates-124146969.html?ref=bullished.co). Fortinet was on pace for its biggest one-day drop in at least 275 trading sessions, since Sept. 25, 2025.

## Analysts cut targets, BofA downgrades

BofA downgraded the stock to Neutral from Buy with a $140 price target. Mizuho cut its target to $118 from $160, and Piper Sandler to $140 from $175.

## A 119% run left little room

Fortinet shares were up about 119% year to date as of Wednesday's close, far ahead of the S&P 500's gain of about 13%. Cybersecurity stocks had been major beneficiaries of the AI trade in recent weeks, as growing use of AI agents lifted demand for security and authentication tools.

Fortinet's end-customers include enterprises, service providers and government organizations in over 100 countries. It reported total revenue of $6.80 billion for 2025.

After the drop, Fortinet's market value stood at $100.1 billion in Thursday morning trading.

### Sources

- [Fortinet drags down cybersecurity stocks as the company's service revenue forecast misses estimates](https://finance.yahoo.com/markets/stocks/article/fortinet-drags-down-cybersecurity-stocks-as-the-companys-service-revenue-forecast-misses-estimates-124146969.html?ref=bullished.co) — Yahoo Finance
- [Fortinet’s stock is taking a dive after earnings. Here’s why.](https://www.marketwatch.com/story/fortinets-stock-is-taking-a-dive-after-earnings-heres-why-d407896e?ref=bullished.co) — MarketWatch
- [FTNT Stock On Track To Revisit May Levels Despite Strong Earnings — Analysts Flag Slowing Product Growth, Services Headwinds](https://finance.yahoo.com/markets/stocks/articles/ftnt-stock-track-revisit-may-112049615.html?ref=bullished.co) — Yahoo Finance
- [Fortinet falls despite strong Q3 results and higher guidance | Seeking Alpha](https://seekingalpha.com/news/4659184-fortinet-falls-despite-strong-q3-results-and-higher-guidance?ref=bullished.co) — seekingalpha.com
- [Why Is Fortinet Stock Falling Thursday?](https://www.benzinga.com/trading-ideas/movers/26/10/62690238/why-is-fortinet-stock-falling-thursday?ref=bullished.co) — benzinga.com
- [The company's filing (Fortinet)](https://www.sec.gov/Archives/edgar/data/0001262039/000126203926000024/ftnt-20261028.htm?ref=bullished.co) — SEC filing
- [Fortinet — Form 10-Q for the quarter ended 2026-06-30 (quarterly results)](https://www.sec.gov/Archives/edgar/data/1262039/000126203926000021/ftnt-20260630.htm?ref=bullished.co) — SEC EDGAR

### More on Fortinet

- [Fortinet CEO Says Pricing Has 'Stabilized, But Not Improved' As Inventory Cushion Fades](https://www.bullished.co/fortinet-ceo-says-pricing-has-stabilized-but-not-improved-as-inventory-cushion-fades-f14ed78d/)
- [Fortinet CFO Calls Services Lag 'Really A Timing Issue' As Revenue Grows 13% To $1.31 Billion](https://www.bullished.co/fortinet-cfo-calls-services-lag-really-a-timing-issue-as-revenue-grows-13-to-1-31-billion-a585f761/)
- [Fortinet Raises 2026 Billings Outlook For The Third Time As Product Revenue Jumps 37%](https://www.bullished.co/fortinet-raises-2026-billings-outlook-for-the-third-time-as-product-revenue-jumps-37-e7a71555/)

[All Fortinet (FTNT) coverage →](https://www.bullished.co/tag/ftnt/)