Fortinet

Revenue and cash flow growth have been consistent in the low-double digits over the last 5+ years (2024 revenue +12% YoY). Subscription/service revenue makes up about 68% of sales and grew nearly 20% in 2024, giving recurring stability. Also, remaining performance obligations rose ~12% YoY, underpinning forward revenue.

We therefore view Fortinet’s top-line as relatively predictable, driven by secular cybersecurity demand.