May 7 (Reuters) - Fortinet FTNT.O forecast second-quarter and annual revenue slightly below Wall Street estimates on Wednesday, due to slowing demand for its cybersecurity services amid muted enterprise IT spending.
Shares of the company fell 10% in extended trading, as forecast failed to impress investors.
Fortinet expects second-quarter revenue to be between $1.59 billion and $1.65 billion, the midpoint of which came in below estimates of $1.63 billion, according to data compiled by LSEG.
The broader cybersecurity market remains mixed, with some firms benefiting from cloud security demand while others continue to face challenges due to delays in securing or renewing contracts amid macroeconomic uncertainty.
Additionally, increased consolidation in the cybersecurity industry is creating further pressure on companies such as Fortinet.
The company's service revenue grew 14.4% to $1.08 billion in the first quarter but fell short of analysts' expectations of $1.09 billion.
The company offers integrated cybersecurity solutions, including firewalls, intrusion prevention systems and cloud-based threat protection, and competes with companies such as Palo Alto Networks, Cisco Systems and Check Point Software Technologies CHKP.O.
Fortinet expects second-quarter adjusted profit per share to be between 58 cents and 60 cents, compared with analysts' estimates of 58 cents per share.
The cybersecurity firm expects its 2025 revenue to range between $6.65 billion and $6.85 billion, with the mid-point below analysts' expectations of $6.76 billion.
For the first quarter ended March 31, the company reported revenue of $1.54 billion, which came in line with analysts' estimates.
Adjusted profit for the first quarter stood at 58 cents per share, beating analysts' estimates of 53 cents per share.
(Reporting by Meghana Khare and Priyanka.G in Benagluru; Editing by Mohammed Safi Shamsi)
((Meghana.Khare@thomsonreuters.com;))
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