HIGHBuilt-inGeographic
87%
Taiwan hardware manufacturing
“10-K Item 1: 'Approximately 87% of our hardware is manufactured in Taiwan'”
FTNT · Concentration risk · 10-K extracted
Fortinet (FTNT) concentration risks
Updated
The most significant concentration Fortinet discloses is Taiwan hardware manufacturing at 87%, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Fortinet’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 3 disclosed concentrations
HIGH2
MEDIUM1
LOW0
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
HIGHOutside partySupplier
limited or sole sources of supply
“10-K Item 1: 'Some of the components important to our business...are available from limited or sole sources of supply'”
MEDIUMOutside partyCustomer
small number of distributors
“10-K Item 1A: 'a small number of distributors represents a large percentage of our revenue and accounts receivable'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-06-24The company's concentration profile combines a high-share geographic manufacturing dependency, a high-share supply-chain vulnerability, and a moderate customer channel dependency. On the production side, approximately 87% of hardware is manufactured in Taiwan — a large share by disclosed size that is structural in character, reflecting where the company's manufacturing ecosystem is anchored. This geographic concentration in hardware production means geopolitical tension, natural disaster, or logistical disruption in that region could have a meaningful effect on product availability. Compounding the manufacturing exposure, some components important to the business are available from limited or sole sources of supply, a high-share dependency by disclosed size. While no specific percentage is quantified in the filing, the combination of Taiwan-concentrated hardware production with single- or limited-source component inputs creates a supply-chain profile where disruptions could compound rather than offset each other. On the demand side, a small number of distributors represents a large portion of revenue and accounts receivable, a moderate-share exposure by disclosed size with a dependency character. Disruption to a key distributor relationship could affect near-term revenue recognition. Together, these three layers — geographic manufacturing concentration, limited-source supply, and distributor dependency — make the supply chain the dominant risk axis in this disclosed profile, warranting close attention to Taiwan geopolitical developments and component availability.
For the engine’s reasoning on FTNT’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Software - Infrastructure
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| APPN | Appian Corporation | 2 | 2 | 0 | 4 |
| FTNT● | Fortinet, Inc. | 2 | 1 | 0 | 3 |
| AVPT | AvePoint, Inc. | 1 | 0 | 0 | 1 |
| ATEN | A10 Networks, Inc. | 0 | 2 | 0 | 2 |
| ACIW | ACI Worldwide, Inc. | 0 | 0 | 0 | 0 |
| AKAM | Akamai Technologies, Inc. | 0 | 0 | 0 | 0 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.