Fortinet’s “Record” Refresh Cycle: Growth Story or Investor Deception?

Court: N.D. California

Case: 5:25-cv-08037

The Promise of a Massive Upgrade Opportunity

Between November 2024 and August 2025, Fortinet FTNT executives repeatedly touted a “record” product refresh cycle. They claimed that roughly 650,000 FortiGate firewall units—about one-quarter of all deployed devices—would reach end-of-support by 2026. The company projected $400M–$450M in revenue from upgrades and told investors that momentum would accelerate in late 2025 and continue into 2026.

What Fortinet Didn’t Disclose

However, executives allegedly knew the refresh opportunity was far narrower. Many of the devices were 12–15 years old, sold when Fortinet was much smaller, and offered little replacement value.

Internal tracking of customer usage was unreliable, especially among small-business clients. Even more damaging, Fortinet had front-loaded nearly half of the two-year refresh cycle into the first half of 2025, undermining its own growth narrative.

The Revelation and Stock Collapse

On August 6, 2025, Fortinet admitted during its Q2 earnings call that 40%–50% of the refresh was already complete. Executives conceded the cycle had “limited financial impact” and pointed to excess capacity from past purchases.

This admission contradicted months of optimistic guidance. The next day, August 7, Fortinet stock plunged more than 22%, wiping out billions in shareholder value.

The Investor Case

Soon, investors filed a claim alleging Fortinet overstated the scale and sustainability of the refresh, concealed early completion of upgrades, and misled the market about revenue predictability.

They argue the company distorted expectations for growth, causing significant losses when the truth came out.

What Investors Can Do

Now, shareholders who purchased FTNT can join the case to stay updated on potential recovery.